Rental Property Investor · Los Angeles, CA · Member since 2017 · 43 posts · 3 votes
Hello everyone,
I'm facing a problem, which I was hoping to get feedback on....
I have a tenant who is refusing to pay any rent (not even partial rent), since April 1, 2020 due to COVID-19. He is receiving CERB, but still refuses to pay.
I've issued a N4 as well as a L1, and have asked him multiple times to make partial payments as well as offering him cash for keys. The courts are backed up and aren't hearing eviction cases despite the L1 having been served.
With June on the horizon, I don't expect any rent coming in. He's until he's forced out (which could be months), and would cost me a fortune in missed rent. I'm desperate as this is risking me losing the property.
I would appreciate any suggestions or guidance here. Thank you in advance.
@Navroze Pirza unfortunately I don’t think there’s much you can do with the moratorium on evictions. I would say reach out to an attorney, but there’s little they can do right now. The only other suggestion I have is to maybe increase the amount in your cash for keys offer.
@Navroze Pirza unfortunately I don’t think there’s much you can do with the moratorium on evictions. I would say reach out to an attorney, but there’s little they can do right now. The only other suggestion I have is to maybe increase the amount in your cash for keys offer.
toronto, Ontario · Member since 2014 · 9 posts · 2 votes
6y
Ah I feel for you. I may be having the same issue coming up shortly. Unfortunately not much we can do in the situation as the laws are not in our favour. Why is it legal to steal rent??
Investor · Ottawa, Ontario · Member since 2017 · 145 posts · 52 votes
6y
Unfortunately there's no legal recourse right now. Document all your attempts to offer partial payment or payment plans, it'll help with the hearing when it does come. If you need to ask your bank for mortgage deferral.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 43 posts · 3 votes
6y
Appreciate the feedback..... doesn't seem like there is anything which can be done to remove this tenant. Other than this, if anyone has any suggestions on anything that's worked, please let me know.
Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
6y
Until Ontario provides balance in landlord/tenant reactions, you are unfortunately hooped. This is why we've pulled out of Ontario in favour of more balanced jurisdictions.
BC is just as bad; I heard a story on the news yesterday where a snowbird rented out her house for 6 months while away. She is now barred from moving back home as the short term tenant refuses to leave (or pay rent) and their is no ability to evict
I'm not sure about other provinces. Sounds like your tenant is using Covid to avoid paying rent, rather than working with you, especially if they're getting CERB.
I would talk to your bank to see if the can defer your mortgage payments. Some will need you to apply, some will just give you 3 months just by asking. They'll tack on those payments at the end.
Hang on until the moratorium is lifted & then evict them. Document all your actions.
Vernon, BC · Member since 2014 · 5 posts · 0 votes
6y
Man that really sucks! Not familiar with the Ontario market. Assuming there is not a similar program to the BC Temporary Rental Supplement Program that you can leverage.
Seems like the tenant wishes to ride rent free as long as they can and feels it will have no adverse affects on them once they are evicted in finding further housing. CERB should allow a person to pay for housing which for many should be up there in priority alongside food.
Some ideas, if possible in your area, to sway the tenants viewpoint that there will be no adverse affects other than an eviction. You may be able to use then as leverage in your negotiations to get some or all of your rent flowing.
If there is a province wide association or group that has a registry of renters (good / bad) such as BC does, get them in the registry.
Report missed rent payments to the credit bureaus which will negatively affect their credit rating which in turn is used for any loans, buying a house or car, or any future rentals as many landlords do credit checks.
If they wish to use you as a landlord reference post COVID-19 and what seems to be an impending inevitable eviction, they need to come good on their payments.
Hopefully something helps other than waiting out an eviction.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 43 posts · 3 votes
6y
@Chris Baxter looping back on this thread... out of curiosity where did you invest after Ontario? Do you have any thoughts on which the most landlord friendly province is in Canada?
Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
6y
@Navroze Pirza I grew up in Montreal but have no investment history there. I have a good friend that owns a real estate brokerage in Montreal and he has a long history of working with investors. Send me a message if you'd like me to connect you to him.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 43 posts · 3 votes
6y
Thank you Chris.
New issue emerging..... I just sold a property (triplex). Two tenants are saying that they refuse to leave the property. I've already issued a N12, but going down the path of a L2 (with the backup), will mean that I will inevitably lose the deal by the time the issue goes to the tribunal.
Any suggestions or thoughts on how to overcome this or what to do? I've offered them cash for keys. They've refused outright.