Ontario Canada question-4plex With month to month tenants

4 Replies

I am a newbie in REI

I came across a nice 4plex that would need rehab.

In Ontario can I buy this property and right away let one tenant go at a time to rehab each unit then rent at a higher price without issues with the Act?

Other question the heat is not included in the rent (gas), I understand it’s not the ideal, should I avoid this? If no, how do you factor a fair price to split the heating cost so we don’t loose money?

Thanks for your time.

Hey @Joanne Boudreault

Congrats on getting started - I bought a 4plex about a year ago in a similar circumstance & performed some evictions, there are a lot of caveats to evicting tenants. Would have to ask a lot more Qs to determine what eviction strategy makes sense & would be legal in your case.

Feel free to DM & we can discuss further.

I would never invest in a property that does not have fully split utilities. It allows the tenants too much leverage to abuse the situation. It is very common for tenants to leave windows wide open all winter, leave power on and run water without consideration of cost. Imagine what a bad tenant can do to cost you a fortune.

As for terminating tenants to reno you can do it but the tenant has the right to move back in following completion of work at their previous rent should they choose. The system requires they give written notification of their intentions to move back when the work is completed. There are ways to work around this obviously by manipulating the reno timing but this can cost extra in vacancy timing in some cases. My advice is to creatively persuade tenants to leave on their own and wait to reno until they do. Unless rents are painfully low it is best to wait. In Ontario you do not ever want long term tenants since it will be impossible to maintain rents at market. Ideally you want turn over every 2-3 years. Target B class properties and NEVER rent to any one on any form of government assistance (welfare or ODSP) in Ontario.

Ontario is extremely tenant friendly, the LTB has a unwritten policy of not granting evictions, so you must study/memorise the RTA and  fully understand how it is regulated. I would strongly recommend you attend your local LTB hearings to get a good feel for the process. You will want to avoid ending up there with a tenant at all cost. The LTB is your worst enemy.

The one good thing about our system is the L9 application, it will become your most valuable asset since it is the one application the LTB will consistently enforce in your favour. Tennat always pays the filing fee even if it does not go to a hearing. I have taken tenants to the board when they refuse to pay me the fee and always win. Never ever file a N4, it is a waste of money, unless you are committed to multiple hearings over a extended period of time. Best to always "persuade" tennats to leave by choice. 

Most of the 4 plex and triplexes that we have for sale tend to have shared heat system (gas) paid for by the landlord. It seems to be the way that the units were built. Trying to divide it up among that many tenants does not work out. Best to increase the rent to cover the cost of the heat and advertise that rent includes heat.