How to Evict Your Tenant and Recover Lost Rents

How to Evict Your Tenant and Recover Lost Rents

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How can a landlord evict a tenant for non-payment of rent? How does a landlord recover lost rents? We dive into this highly requested topic and provide the answers with a video interview from Zhen from Prime Properties TO and Alesi from Stonegate Legal.

Video at the bottom of the page.

How to Evict Your Tenant and Recover Lost Rents


Hey everybody. It's Zhen here. And in this episode of the podcast, we have Beaded Alesi from Stonegate Legal coming back onto the show to talk about in-depth about how to get that tenant evicted. The reason I brought a bit of back on to this show. It's because I know April 1st has passed and during COVID-19 some more I would say like a lot of people got the rent. But for those who don't, we go over and emphasize why you need to kind of start the eviction process how to deal with it and we go from start to finish so that you guys have an idea of how long I should take somewhat the steps are.

We also go through a lot of things about the kind of like recovering rent damages and that happens and a kind of some of this short-term stuff as well. So this episode is very action-packed. So make sure to stay tuned to the rest of it. And if you guys are looking to get some help from all of this because it is a little bit complicated if you don't understand what we're talking about that make sure you reach out to beat. Okay. Thanks and enjoy the episode by day trial welcome to another podcast with our lovely beaded Alesi from Stonegate leader.

Hello Hi, how are you? Okay. Okay, so we're very thankful for you to come on the show against you with the kind of have round two because you're so popular and round one above a hundred deal with tenant issues in COVID-19.

Like so I've asked to be that to come onto the show again to now we're going to talk about how we are going to evict tenants who were not Cooperative in the paying of rent. That's what leaves it at.

Thank you for having me again Zen. Yeah for sure for sure. I think one of the main things that I was going to start off asking you is and only compare notes. Like how many people on your side have pavement like percentage-wise?

Okay. So here's what the media say some their various media sources, then that are saying that between 85 to 90 percent of Canadian tenants in Ontario have paid the April rent that is you know, 85 percent 85 to 90% seems like such a high figure.

However, even though 85% is rather high.

Message the remaining 15% is equal to about 75,000 homes or households in Ontario. That did not pay rent. That's quite a bit.

It is quite a bit that is all I'll be a big backlog in the silence had employed a huge backlog.

Yeah, I think I'll see you on my side. I think we're okay. We got lucky but I think about three of my clients have had issues with tenants not paying.

Two of them are trying to set up a payment plan as per what you talked last time with the credit card and Red Bank, but one of them is just fully not cooperative and we sent thee and for oh, excellent.

Excellent. You want to get that started right away.

Yeah. Yeah, but you know what that probably leads to I think why we're having this chat, but just before everyone else if you are worried about how rents going paid, whether what the strategies are for your tenants and how to talk to them. I'm going to put a link somewhere on the screen here. And the note so that you can watch our last check but this time I wanted to bring beat on to talk about what's the process of evicting a tenant going from n for to L1 and to the landlord-tenant board because I know some people see that task as a very daunting one. So we're going to have beat up who has probably done this quite a lot of times can guide us through it.

Excellent.

Yeah.

So, where do you start? So what is the first thing we do if I tenants have not paid rent data.

Those here your tenant has not paid, right? That's one of the biggest questions that we've been our office has been flooded with can we have attendant not pay rent? Because they just don't want to or can they not pay rent? Because they've lost their job. So the law does not allow the tenant to hold back runs for any reason and that includes COVID-19 pandemic.

So if a tenant doesn't pay rent by the date that it's due the landlord has the right to give the Tenon and N4.

So an end is the name of the notice and it's called the notice to terminate tendency for non-payment of rent Yep. This notice gives a tenant an option. So the option is they either pay all the arrears in full or they have to move out of the rental unit within 14 days.

If they don't pay if they're still in possession of the rental unit and if they don't pay any of the arrears, the landlord has the right to apply to the landlord and tenant board. It's called an L1 application for a hearing date so that Want does not need to be served on to the tenant. The only thing that needs to be served on to the tenant is the end for the L1 is all that can be found online or via in-person or fax with the board currently right. Now. The board is not accepting in-person applications.

So your best bet is on they're faxing it in or e-filing it online Okay. So let's start with the first part D and for what's the protocol for because I've had a lot of clients ask me questions like How do I fill this form out? You know, do I hand it to them do I'm a little I had the extra day because I know that you need to fill this out to the T.

Otherwise, it's not effective.

Absolutely. You want to make sure the end for actually any legal notice that would be filled out to the T, especially the end for I'll give you a reason why so the nth for should be filled out to tanning cannot be filled out by a realtor buy a property manager by the It's friend.

It can only be filled out by either the landlord or the landlord is a legal rep, which is the paralegal or the lawyer acting for the landlord that's yourself or that's it me or the landlord. And the reason for that is because if there are any little are so minor errors mean meaning if you miscalculated the arrears even by a quarter or by a dime or if you've miscalculated the number of days if you forgot the postal code. If you forgot to put a basement apartment if you forgot an initial or sorry if we got a middle name initial or You misspelled somebody's name. Any Minor error will well risk having that application dismissed at the hearing and why am I saying this Miss at the hearing is because before COVID-19.

It took on average about 4 to 5 months just to get a hearing date for your application to be heard in front of the board if the board is closed right now. So if you can imagine those 7500 units haven't paid what is the percentage out of that many tenants that are going to be taken to the board.

Now, you're not waiting for five months for the hearing day. You're probably going to wait about 9 to 12 months for a hearing aid. And the reason why you don't want to make an error in your application is that if you if you're waiting nine months just to get in front of the board and there's an error and your tenant is still not paying rent. Do you want to risk having your Location after nine months of waiting to get in front of the board getting a dismissed?

Absolutely. It's kind of like you have to realign up to get to I get here.

Yeah, you don't want to roll the dice on that? So just make sure if you're the landlord and you haven't done this before definitely invest in a competent legal rough. So what data is saying and I'm reading between the lines if you're bad with paperwork call Dida.

That's right. If you're bad with paperwork or if this is your first time and you don't know what you're doing hire someone hire a pro.

Okay, don't go stay away from these Facebook forums. I see some landlords posting on these Facebook landlord and tenant sites. How do I fill out this or how do I fill out that and these forums are they just gave their opinion on things that they don't know on application legal forms that they've never filled out. So you have a high possibility of making a mistake and getting your application dismissed.

Yeah, I don't think it's worthwhile to do like even when they do them and I look at them for my clients. I'm like, oh man, I'm counting the dates and I'm like do I include the day I'm sending this we don't include it because it's you double like do doubt yourself. Right? So like sometimes I'm always just like hey, yeah, is this correct and you gotta come with next friend recently or if you mail it you got to add x amount of days like it. Yeah.

Let's be careful because you do have to also fill out a certificate of service which is promissory who served this notice.

It's like an affidavit telling the board who served this notice and you want to make sure that certificate of service is filled out correctly as well. Okay, let's touch on that like what hire someone yeah. Yeah, but let's touch on that. Like how do you serve it? Like I know I've done mailing and I've also like hand kind of handed it to the tenants. But I've had a couple of people tell. Okay, how do I mail it when it's not living there anymore or kind of they're not home. I can't get to send it to them. How do I know? Like what's the correct way to serve them this end for so the language intended for it has their acceptable methods of service? Okay. So these methods of service can include hand-delivering hand delivering it to someone over who looks like they're over the age of 18 looks like faxing it to their place of work or their Students putting it in the mail where Mill is usually picked up sending it via courier express post or be a regular post-Canada Post just to be clear on one thing email or taking a picture on your phone and sending it is not an acceptable method of service.

Okay. So if you do that, that's another risk of gas having it dismissed at the board.

Yes, they were What is your recommended way to serve the end for my recommended way is to waste so regular mail and express post Express. The express post is the one that kind of gives you tracking. Right, so you can say that wasn't there.

So you do the tracking number and I always get with a signature.

Oh, I see. Yeah, so like whoever receives a has to sign for it, right? That's right. That's right. So what happens if it was never received, can you still go on to the next up?

We send it to ways to receive it. Got it. Got it. Got it. Okay, right.

So now that we've filed the end for anyone who's still keeping track. We are now 14 days or 15 days depending on how you sent it. What's the next step towards eviction?

So the next step on day 15 the landlord can file with the landlord and tenant board an L1 application and it's called to evict a tenant for non-payment of rent and to collect rent arrears at the tenant hose.

I have to pay a filing fee. If right now the filing fee if you file online is 175 if you file it via fax or in person it's about 190 increase the price. I thought was 160.

They did 75 they've increased the from 160 to 170 5 and now they've increased another 6% but they've deferred the increases up until July got it. Got it. Okay.

Got it. So and dark. We are quite excited.

No, I was just going to go on now. Just once the outer one is filed with the board. The L1 is you're asking the board to give you a hearing date.

Okay, then the board sends out a notice of hearing to all parties.

But right now that's not happening, right because the courts are closed.

Yeah.

Yeah, but the landlord still has the right to serve and file notice this keep in mind. Okay. So this is what you want to keep in mind the set the 75,000 tenants who didn't pay those landlords are going to be rushing to the board. Once the board reopens.

You want to make sure that you are ahead of those landlords that you've given the end for that you filed the One and that you just have to wait to get a hearing date.

Yeah, important. We already pressed the so much to exactly sorry to interrupt your phone. Press this so much. This is why you have to file your end and fours and fell ones because you don't want to get a flag behind for when the courts do open. After all, that just means more rental losses for you.

Oh, yes.

Yeah. Absolutely.

Absolutely and it's scary because you know, everybody is going through a hard time. It's not just the It's yeah, like I think the biggest worry when I tell people like hey, you know, I'm kind of trending nicely to the tenants.

I'm giving them some more time, which is all perfectly fine. Right and I agree but there's a point where like, let's just say your mortgage deferral runs out or you can't get any more and now you have to cover two mortgages right then you can be at risk of losing your investment property.

That's right. It's very scary. It's a very scary position for the smaller landlord. I say yes because of the big anchor landlords that we were talking about before they have the funds. So if 500 of their units pay and 200 don't pay that five hundred will cover the 200.

But if you have that landlord the small landlord who owns this house and the secondary property and who works for a sow annual salary and he's been laid off temporarily if his tenants. Don't pay he's got to dip into his pocket.

Oh, yeah.

Big the cost if he doesn't get approved for the mortgage deferral that's even worse.

Yeah, that's a tough spot. And that's why we're just urging anyone like do serve the end for and I always just tell people like this is why I tell my take the tennis like the look, this is just a business. I have to do it this way to protect myself. I'm still agreeing to work out a payment plan, but I have to serve you to end for until you have paid up your rent into there are no more rears.

Absolutely.

Absolutely and even then with Without going to the board's there's no way of enforcing them to carry through that payment plan. Yeah.

So now that we filed the L1, let's just say hypothetically in a non-covid-19 world what happens after you had a hearing dates?

Okay, so hypothetically and I wasn't the world is an optimistic way of talking for us.

It's all over it.

Well, this too will pass right?

So we got it. We got to be prepared for what lies ahead one. Dust settles, right and you want to be the smart Savvy landlord. You don't want to be the landlord that has to wait a year because they didn't notice right on the hearing date that the landlord and the Tenant the parties have two options. Okay, so they can either appear before the adjudicator and this is the option that the stubborn landlord in the stubborn tenant that you know wants to draw a line in the sand and take that position that I don't want to work this out. I want the judge to decide. Side this thought. I mean, it's not the smartest a choice to do that. It's not known that the smartest play is the second option, which is mediation.

This is highly recommended by the board because they want to see you be able to solve your problems yourself.

Okay, this keeps in mind Adam at mediation you go you sit in a room. That's probably ten by ten or eight by eight with a board-certified mediator and this mediator.

Is he or she is an impartial third party and they will listen to both sides and they ask questions to come up with some sort of positive solution where everybody is happy.

Now, of course, not all mediation meetings will make all parties happy. So even if you are not satisfied with the outcome in mediation you then proceed to your hearing room and go in front of the adjudicator.

The only ones going in front of the adjudicator is because is that this judge or this person who decides on matters has no legal backing so they're not a lawyer. They're not a paralegal.

They are the reasonable person who you know, to get that adjudicator position.

They are familiar with the residential tenancies act.

They have Stacks and stacks of files that they have to go through.

Let's say they have to go through between 60 to 75 miles in a matter of I would say two hours at the most so good.

Little details the emotional ties that you have to the property or what happened. They hear one side. They hear the other side and they apply the law that's going in front of the adjudicator.

Do they get like a gavel afterwards?

Yeah.

I saw it when we were a Tuesday, but I go in for science at it. It's fast. It's just like Zips are real. Quickly.

Yeah, you blink and it's like, oh my God what just happened? I still haven't gotten my evidence. I still haven't called Witnesses because they don't care. They have to decide on 60 or 70 matters.

If everybody took half an hour to present their case.

Nothing would get done imagine that on these 75,000, you know non-payments.

We do not have the human resources for that.

No. No, we don't want it or not the Manpower either that's so then Stir say you get the adjudicator like you're sentenced.

Your tenant is now infected.

How do you get that person you've acted so they don't do that, but that's positive thinking. So, yeah, what they do is they cut they come up with an agreement.

So the landlord must accommodate the tenant. Okay, you must let the tenant mess up a second time per se which is the thing that drives most do. Crazy when they hear about it, I mean unless you get lucky and your tenant doesn't show up. Then it's automatic, you know, you request a standard order to evict but most tenants who are Savvy will show up. They will give the sob story. I lost my job or I got sick or so, you know, the landlord didn't make this repair whatever they say the adjudicator or the mediator will put together an agreement. So once I put together agreement any breach of that Tremont that's put together by the adjudicator or the mediator can result in an order to terminate a tenancy with 11-day notice to the tenant that's called the standard order to evict now on the twelfth day. If we're saying, you know, let's say, for example, the tenant even doesn't show up and you do get a standard order to evict you still have to wait that 11 days. Yeah ever on day 12 the landlord can file for an eviction. Ian with the Enforcement office for the sheriff Okay. So what we've gone to the board we start we serve the end for we filed the L1 gone to the hearing.

We've put together an agreement. We've accommodated the tenant messed up now, we're taking your order and we're going to the Enforcement office.

Okay.

So most people think hey, I'm going to the sheriff he's coming today.

That's not the case because enforcement officer the enforcement of then issues a 2 2 3.

Week?

Timing for you to call in with your for the eviction with your file number. Yeah. Okay. So here's the issue that COVID-19 is has done now those landlords who have orders in hand after March 16th.

It will have on hand those evictions have come to a halt, unfortunately.

So those 10 and those others have gone through the process March 16 comes they've gone to the enforcement.

They've scheduled the sheriff is now on hold.

So even though that order says, you know, the tenant has to pay a per diem rate for every day that they continue to reside in the property.

If they haven't paid for months, so what makes you think hey, right however on the date of the Colin because you will have a call-in date the sheriff will give you the date and time for the eviction so that two to three period will end up to be or Colin date.

Let's say if it's On Monday they'll call you back and they will say well coming on within those five days on the date of the eviction the sheriff will escort the tenants out of the property and the landlord can then, you know pursue to change the locks and secure the units, you know should make sure the water shut off lock the windows make sure that you know, all points of entries are blocked.

What about the belongings of tenants?

It doesn't stop there though.

Okay, so even so now the tenant has no access to the property. The landlord has regained the control back of the property.

However, the landlord must allow the tenants 72 hours to come back to be courageous with the landlord to come back and remove their belongings failure to do so within the 72 hours may result in the landlord either discarding the items selling them.

Keeping them.

They now belong to the landlord.

It's probably not stuff. Do you want to keep anyway?

Yeah, unless I mean there's some big-screen TVs or anything that you know, you can sell to Riku cause you know, but usually, I mean they don't leave they'll leave their pets behind and come back for them.

But the electronics they usually end up taking.

Yeah and the more valuable items, right?

So once as I say, I guess someone's been depicted. How do you recover your lost rings?

Okay. So once this guy is God this guy or girl is gone, you take that order or your legal rough takes the order and they can file for garnishment with the small claims court.

The garnishment is the most common ways the most common way to actually to collect a resource from a tenant provided that the attendant is employed if the tenant is on like social assistance or Ontario Works o w pension you can't touch any of their support you cannot Garnish 20% per paycheck until all the arrears are paid up.

I don't get it. So basically if they're working you can garnish 20% until you're paid up until the point days left.

That's right. And you still have to go through the court to do that. It's you don't just send a letter to their employer. They're still a process that needs are called water. Right?

So you have that eviction order right LT orders.

Usually they at attaching a separate page. As I said, is that the separate pages? It's there's a per diem calculation that anytime after eviction.

This is the per diem rate.

Should you continue to reside in the property? So the landlord can go after all the rental arrears up until the day of an eviction and are the per diem rate plus interest after that being evicted and they're staying in the rental unit.

How long does it usually take to Triple your money?

Wow, that depends on how much you're old.

So I mean and it also depends on how much that tenants making right if the temperature is making a salary of thirty or forty thousand dollars a year and they owe you 10 or 15,000.

Well if you calculate 20% so paychecks that may take yeah long time, whatever.

Yeah, then if then you have those tenants that you know, our pay is making six figures or over six figures and their rent is over 5,000 a month or 10,000 a month and they don't pay like it can take years to collect arrears. That's why you have to start the end of the process as soon as possible. I can't stress this enough, Yeah a hundred percent agree with you.

Now, this is the tenants for anyone who's thinking about trying to be professional. And Alternate does it affect our credit rating. So I kind of like it hurts them finding another place.

So they're sort of the okay. So there's been a lot of talks about credit and Euro for bad tenants due to privacy laws there cannot be. Well, I'm not going to say there cannot be due to privacy laws.

It's not it's frowned upon for landlords to post negative or slander, you know bad tenants on social media or revert to these bad tenants forums and can't do that.

Unfortunately, there have been some talks that you know landlords can hit the credit bureau for most tenants. I'm not very familiar with stuff like that.

You have checked there's a company out there. Can I say the company name? Yeah for sure.

There's a company out there called rent check. Okay, and what they say is that a for a monthly fee.

They will allow you to you know, post information on bad tenants.

Okay, and this information can be accessible by landlords that you know, those tenants have applied for on the rental properties.

However, the downfall with this program this rent check is that If the landlord is not paying the monthly fee, then the landlord will not have access to this.

Yeah, a free system where you know everyone can rush it and disclose the issues are with their tenant or who the tenant's identity.

Yeah, I think a lot of people ask this question is when they get upset with like the tenant to like imma do everything to ruin your life including like damage your credit and I haven't heard of someone doing that and I was just able and you can just recover your lost income then just call it a date like this person's home looks right and you're not giving my reference anymore. So finding, you know a new spot to live is going to be even more difficult.

Yeah, absolutely. That's why going back to the very beginning before the tenancy Pride when you're prospecting for a new tenant is very important to properly qualify. I think the people usually a lot of people don't understand or they don't know the right questions to ask to properly qualify a tenant.

I mean, that's one aspect and the other aspect is you can do all your due diligence a thousand percent and And still not be able to get a good tenant. Yeah, sometimes you just get tricked by the professional tenants who look amazing on paper but no the system and then really take advantage of you.

That's right. And that's why qualifying is so important and even though go as far as checking up on them on social media because yes, you can tell a lot about someone through Facebook Instagram Google.

Yeah. Absolutely. You can tell they're kind of Lifestyle They live or what kind of people they are from social media. Yeah. I think my big thing when I scream myself and for clients' eyes, I'd love to you just gotta check whatever it is. The story that they're telling you is correct. And one of the big things is where they live what they work and when they graduated from school and if you go to the LinkedIn, you can see all of that and if it lines up and great and there are questions are going to ask employers or people who used to be a reference because I know some people who just put like their cousin who has a different last name as a reference and if you ask the correct questions.

They're just more like, yep. They were good. They were great tenants. Right?

Like he went always tell people to ask just ask them. Like did they live in one two three main streets and they're like what street they know I okay. This is not a good reference to use. Right?

Yeah. So if anyone's curious about that, I think I have a video on it. I'll put it into the link somewhere for you guys. Okay?

Yeah that you know what that's great that that also comes with experience, right? Yes.

Another tip is like not check not accepting the existing landlord's reference talk to the previous landlord.

This is another want them out there going to tell you all the things under the sun about them to get them out talk previous landlord.

That's will tell you the truth.

Yeah, exactly. The tough ones too are like the people who haven't lived on their own before and like their references is like mom or dad and my family just not gonna go over. Well, I don't know any mom or dad. That was bad. Thanks.

So be it now, let's say they're affected if our clients are having issues with paying for the kind of like our mortgage. Is there any recourse available for them to collect any type of rent or payment or any come before the eviction process?

So there are relief options for tenants. I know that tenants like landlords, you know where all people feel defeated, especially at this time.

However, let's talk about some of the relief options available for Or tenants. Okay. So number one the payment plan. Okay.

I just want to stress the difference between a payment plan. That's put together by the landlord and tenant board with the enforcement with eviction enforcement than a payment plan. That's put together between a landlord and tenant right now because the border is closed.

Yeah that you plan to put together by the board if the tenant messes up then the landlord can pursue an eviction the payment plan that was put together by the landlord and tenant.

Doing one of these right?

What are you gonna cream it together?

And you're saying I hope you can carry your end of the deal because I can carry Mine by collecting if and then can't for any reason and if they agree to it, there's no way of you enforcing it. It's not like you can take it to the board and say Hey, you see the tenant agreed to this and they did the opposite.

So should you still file an end for if you have a payment plan set up?

Absolutely.

Absolutely.

Lee gets in front of the 75,000 applications that will be flooding move or less per second. For example from that selects 35,000 even you know, what's an even ten thousand.

Yeah. It's going to be a lot to get in front of the board want to get in front of the only other thing you have to keep in mind when you're putting a payment plan together with your tenant is that your payment plans are clear and everybody understands what is expected of them?

You also want to make sure as a landlord that to provide Clarity is that you haven't permanently lowered lawful rent.

Yes because moving forward again. If you have that Savvy tenant who may know the law better than the landlord do you want to make sure that moving forward after the dust settles because again this too will pass that the landlord doesn't find out that oh my goodness by accident I lowered. I'd lawful monthly rent and you got rent control and they're never going to move up.

That's right.

Yeah.

Yeah. So again talk to be de higher be they are firm. If you need this kind of fit. There's a lot of things you could triple for absolutely absent in these little mistakes that will add up.

Yeah.

Yeah, just put this second relief option is one of my faves.

Okay. Well, Is the rent bank and I'll tell you all about the rent-paying the rent Bank the Toronto Red Bank is the more popular one if the rental property is located anywhere outside of the GTA. Then you just have to Google their number because the Toronto red bag provides limited interest-free or low interest to anyone that's facing eviction for rental arrears.

That's how fantastic they are. They will entertain tenants that have bad credit no credit crap.

Credit bankruptcy Consolidated.

They've Consolidated their loans. They will entertain any person that's facing eviction for rental arrears.

The maximum loan from the Red Bank is two months' rent.

Great.

Yeah, boo.

No not after two months.

That's why the time that these two months rent.

Yes. I think I would recommend that a lot of people. I know after hearing you talk about that you can't affect the Credit rating of the tenant pretty sure the rent bank has that ability because there are credit right? So now just not nor kind of defining what the situation but is not solely your responsibility to chase after person and put like a quote-unquote hit on their credit score the right bank and do that because they have the ability to who as we don't that's right. So those tenants who Rush the to the rent Bank before April 1st, they got their April and May rent paid for Yeah, and you know what? I would tell people that I saw make the initiative to do that. I was like, okay, you know what, they're cooperating.

They're trying to do this with me. So I always told them like look I'm I just thought the end for understand I'm doing this for business, but I appreciate you going to the rent bank and then let's see where things are in June and then you know work together again.

That's right. That's right. It's like I said, it's great. They'll even actually provide you with a first and last if you want to move from your existing home till morning.

Affordable and more stable housing but I think it is fantastic the major benefit of the rent Banks then so a such a fan of the Red Bank. Yeah. You're like a spokesperson for my neck.

I should get paid because we're a packager copy it up. Jesus wants to shift right the major benefit for the landlord having their tenant you go to the rent bank. And is that the landlord gets paid immediately with another have a five to seven-day turnaround.

So within five to seven days, you get your rent for two months you don't have to worry about any payment plan because the right bank will make that payment plan with the tenant and the Tenant doesn't have to worry about the landlord proceeding with legal costs or legal fees or any sort of legal enforcement.

Yeah, it's fantastic. It's a fantastic solution for Lawrence everybody benefits from the rent bank. So if your tenants are having difficulty send them to the rent bank for sure now, how do you deal with Flex Pay damages after the eviction? Much to say, you know, I infected my tenants they got so pissed at me. They took a sledgehammer right through all my drywall.

I'm just saying everyone imagines that you know, or like they took a sledgehammer and like shattered all my toilets.

Oh geez.

Okay. So this is a very loaded question. I know.

Yeah, this so this question has it's not a black or white question. There's a lot of gray in this question because some people seem to think that this is a landlord and tenant matboard matter and some you seem to think that this is a small claim court matter and it depends. It depends on the legal rep that you have as well because some legal wraps will fight at this if the landlord takes the tenant to small claims court for damages.

Some legal reps will say, you know, the small claims court doesn't have jurisdiction to decide on them in tenant board matters at the landlord and tenant board is where the landlord can go after the tenants for damages but damages you have to prove because Either it's coming out of the tenant's pockets is coming out of the landlord's Pockets or you're living in an in the adjudicator's hands to the side.

Yeah.

I like them influencing always tell my clients and myself it is like just go for inspection like Joe but semi-annual inspections and even just have them signed something would be moving like, you know, these are the damages their penis is fine. Just so you have something on paper get over there and get to your property check the smoke alarm battery.

Make sure that the carbon monoxide detectors working change the furnace filter.

These are all things upkeep the landlord the has responsibility for that will get you into the property so that you can see what's going on in your property.

It's very very important.

It's very important like being a landlord that doesn't look at properties.

Most tenants will be like, okay, that's great. And then you may get taken advantage of and it's not that bad. You just take half an hour to walk around the property change some bad. That's it.

That's it. Yeah.

Yeah.

Okay. I got a few more questions for your betta and this is just for some of my clients who have asked me personally. I don't have the answer for you what I don't so what happens if I have some clients who have short term rental properties and they're looking to fill it for the short-term house. Did you fiction process on that and are they Under the Umbrella of Ford's you can't be convicted kind of Mantra?

Okay, so I'm going to sprinkle some crappy news on this question right now because of what's going on with COVID-19 short-term rentals Airbnb's are at a halt until are not allowed to be used or pursued unless it's for an emergency housing.

Okay.

Also another machine some Brown bad light on these small landlords are the ones that are usually doing the Airbnb is in short-term rentals.

They also have to keep in mind that even though some of these Airbnb's are short-term rentals there.

There is a possibility of them making more money more rental income. They have to keep in mind that the ACT does not protect them. The residential its exact does not protect short-term rentals.

So evicting a tenant may be very difficult.

I don't think we could briefly talk about it's not Sue the landlord-tenant board. It's through a bailiff, right?

That's right. That's right. You have to go through a bailiff private bailiff. You have to pay sometimes they'll charge you may be up to a thousand dollars. Whereas the Enforcement office the Sheriff's Office their fee is about 350 so you can see almost triple the cost.

But what would I guess the question would let me rephrase it is can the person who's staying at The short-term property be like hey, you can't evict me. I'm choosing to stay.

Wow, they can I mean I've seen it happen they can but the landlord has to pursue a private bailiff.

Yes, and then anything else is through small claims, right?

That's right.

And it also ended depends on the small claims court because if you have if the landlord says, you know what I'm going to call the cops the cops will come and take you the police will come but because it's a landlord-tenant issue.

They don't you know, they don't arrest anyone They Don't interfere carefully, especially doing short term leases. You got to make sure your leases are clear that there's a start date and there's end date all your eyes are dotted your t's are crossed because when it comes to short term and short term rentals and Airbnb's the ACT doesn't protect you.

Yeah, and I think something I want to confirm through his landlord-tenant board protects anybody with Elisa.

For 365 days that when you write anything less than that is not covered under the landlord-tenant board.

Well, a month to month tenancy is covered under the okay after the one-year lease.

That's right.

Kyle's got it. Okay.

Okay. That's very helpful.

Now. I'm going to ask you to pull out your crystal ball.

What do you see happening for rents in May and June because I know you and I were talking a lot of April coming but now we got you to know, the crb is available people are adjusted kind of to like COVID-19 self-isolation.

Do you see the Ranks coming in for me in June?

Wow, that's going to be difficult to say but I'll tell you my crystal ball the way it's looking right now, even with other relief options that 85 percent of Canadians who paid rent.

We are expecting that number the percentage to go down to decline because more and more tenants will end up in delinquent delinquency during the pandemic and that's because the Canadian emergency relief benefits fund they'll pay you up to $2,000.

But again, you've got to think it's taxable.

So for five hundred dollars goes back to the government and if you're living off 1,500 a month and that includes your rents your insurance you still got to eat.

It was really good.

Yeah, it's gonna be very difficult for you to pay for May or June.

Yeah, my gut feeling tells me that I think the people who are affected initially.

Probably have some kind of savings but May and June will be anyone who's lost or use up their savings or have to use the RSP or the second wave of unemployment is coming because I think a lot of like these service industry has been unfortunately it off but I'm starting to hear things on the kind of like white-collar workers or two companies. I okay you either take a reduction in your salary or you may not have your job with this is over.

Oh boy.

Yeah.

Yeah. It's like extortion.

They don't say it that way, you know like it's the corporate slander, you know like they make it sound all iPhone case. Okay, but you know, it's a corporate talk.

Yeah, it's terrible and I mean the longer it takes for everything to go back to normal.

We're fine. We're going to find that that percentage is going to decline even more.

Yeah, that's what I'm kind of leaning towards you and that's why I'm just telling her like be prepared for me and Jun do proactively tenants see where they are with, you know their upcoming rent because it's already April 22nd right now, so that's eight days away. So a week away. So just be ready.

And that's why it's more important now to file your and forest with the board because May or June or July the longer that it takes for the dust to settle there's going to be another wave of landlords Russian board didn't serve theirs than for in April.

I don't want to become a June.

Yeah, and I might not position right now where it's like not that I don't feel bad for attendance. We can't pay but like if you think about it, it looks like we giving you 22 days since April 1st.

You've probably got Our CRV if you applied for it by now, and if you haven't gone to the rent bank or talked about a prepayment you really should have served a 10-4 earlier if not serve it now.

Yeah, it has to be served immediately. I mean if the tenant pays and they catch up depending on when you're hearing date is you can always withdraw that hearing but getting the hearing issue is getting the hearing and when will you be able to get the hearing?

Yeah, it's a long process we talked about it we spend some time on it and you just don't want to get lagged for all of us because that is just no rent for you.

That's right. So that's right.

It's a very awesome beta we appreciate your time. Is there anything you want to add that your predictions are happy can reach out to you. If they have any other further questions we didn't cover.

Well if they have any further questions, they can always contact us. They can go through our social media Facebook and Instagram or check us out on our website Stonegate legal services that CA and I are here to answer your questions at any time for sure. I'll put all their contacts information to because looking for PDF in the show notes.

Or in the description, if you're watching this on YouTube, so thank you so much for having me and I look forward to Future seminars webinars.

Thanks for your wealth of knowledge. I'm sure you are like providing some sleep for people who can't deal with some of these technical issues.

I have calmed the few nerves for sure. The feedback for me has been fantastic.

Thank you.

I'm happy to be here. Thank you so much again. Thanks, man.

Okay.

Bye for now - now they're watching this one. How about this one? Oh, you know what? This one's good too. Ooh, this one's really good. You know what just watch the most.

How to Evict Your Tenant


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Zhen Liang

Zhen Liang

I help Canadians invest in real estate to create more options in their lives. Looking to leave your job? Retire early? Dare to dream. Let's help you create your winning investment strategy today.