COVID-19 Landlord Webinars
How to Maintain a Good Relationship with Your Tenants
Manage Tenant Requests for Rent Deductions OR Delays
Learn how to Protect Your Real Estate Investments
How to Deal with Non-Paying Tenants
How to Manage Your Short Term Rentals
In this series of Landlord Webinars, your host Alex Wilson helps you deal with your tenants as a landlord and solve various tenant issues especially during the Covid-19 pandemic. Alex is on the front lines and witnessing the effects Covid-19 is having on the real estate market and provides expert advice related to managing your properties.
Joining the sessions is Elaine Paige, who is a top paralegal with many years’ experience. She was awarded the William Jason distinguished top paralegal of the year award in 2013! She will be shedding more light on what to do as landlords during this pandemic to make sure that your units remain intact and to maintain a good relationship with your tenants.
Learn what landlords should be doing to protect their real estate investments during the Covid-19 pandemic. We review the latest Covid-19 developments affecting the real estate industry and offer expert advice on how to deal with non-paying tenants, what your rights are, and what steps you must be taking to protect your assets.
REAL ESTATE INVESTING
Alex Wilson
Owner/Broker of Record
RE/MAX Wealth Builders Real Estate
contact@alexjwilson.com
(416) 996-5181
PARALEGAL SERVICES
Elaine Page
Owner/Licensed Paralegal
Page Paralegal
elaine@pageparalegal.com
(905) 763-7922
LEASING & NEW DEV
Kyle Dovigi
Director/Sales Representative
RE/MAX Wealth Builders Real Estate
kyle@remaxwealth.com
(416) 356-6274
PROPERTY MANAGEMENT
Alicia Stewart
Property Manager
Access Toronto Property Management
alicia@accesstorontopm.com
www.accesstorontopm.com
(416) 666-9868
SHORT-TERM RENTAL
LEGAL SUPPORT
Doug Levitt
Partner / Lawyer
Horlick Levitt Di Lella LLP
dlevitt@hldlawyers.com
www.hldlawyers.com
(416) 512-7440 x225
WILLS & POWER OF ATTORNEYS
Philip Tinianov
Barrister & Solicitor
Tinianov Law
phil@tinianovlaw.com
(416)-363-0866
FREQUENTLY ASKED QUESTIONS
COVID-19
This FAQ consolidates all of the common questions that we received about how to manage tenants, requests for rent deferrals, and landlord rights during the Covid-19 webinars we hosted throughout April 2020.
Disclaimer: All of this guidance applies to real estate located in Ontario only. Each province has its own rules/regulations that must be followed. Seek professional help from experts in your area before taking any actions.
Q. CAN I CURRENTLY EVICT MY TENANT?
A. All evictions for non-payment of rent (N4s) have been halted for the foreseeable future. The Landlord and Tenant Board is required to hear the eviction cases and a sheriff is required to enforce an eviction order. Both of these are only acting on emergency or criminal cases at this time. However this will change and you want to make sure you have taken the required steps and have filed all of the required paperwork – this needs to be done properly so contact us for professional help.
Q. CAN I FILE AN N12 (EVICTION FOR PERSONAL USE, DEMOLITION, REPAIRS AND CONVERSION)?
A. It is very unlikely that these evictions will occur for ANY reason. You can still serve the notice but you will not be able to get the eviction order to terminate the tenancy or have it enforced for the foreseeable future. Regardless, do not try to game the system because this situation has been greatly abused in the past and the burden of proof during/after Covid-19 is going to be even higher. Seek professional help as this needs to be addressed on a case-by-case basis. If you terminate the tenancy due to owner occupying the unit, you are required to pay the tenant one month’s rent.
Q. WHAT IF MY TENANT ASKS FOR A DEFERRAL?
A. Make sure that they have a valid reason for requesting a deferral. Many people are still working and can still afford to pay their bills even though they are not going out. Direct your tenant to Government benefit programs for all benefit programs they may qualify for. Programs have already started paying out and virtually everyone that has applied is being accepted: https://www.canada.ca/en/department-finance/economic-response-plan.html#individualsCanada Emergency Response BenefitSalary Top-Ups for Low-Income Essential WorkersChildcare Cost BenefitSpecial Goods and Services Tax credit PaymentIf you grant a deferral, make sure you come to an agreement as to when the repayment of the money is going to happen. The agreement needs to be clearly documented in writing so that you can have it as evidence should the need arise to go to the LTB later. This needs to be done properly so contact us for professional help.
Q. WHAT SHOULD I DO IF MY TENANT DID NOT PAY ALL OF THEIR RENT?
A. If you tenant did not pay all or some of their rent, for whatever reason, your only recourse at this time is to file an N4 (*Notice to End a Tenancy Early for Non-payment of Rent). Even if you have a good relationship with your tenant, you should do this as a precautionary measure. Explain to the tenant what you are doing and reassure them that you will be working with them but that you need to protect your rights and investment. Filing an N4 needs to be done properly and according to specific timelines so seek expert help.
Q. CAN I LOCK OUT A RESIDENTIAL TENANT WHO DOES NOT PAY RENT.
A. ABSOLUTELY NOT!! You are setting yourself up for huge fines and significant legal troubles if you do this. If you are even considering this, get in touch and we will refer you to a property management company to manage this for you.
Q. CAN A TENANT USE THEIR LAST MONTH’S RENT DEPOSIT TO PAY THEIR CURRENT RENT?
A. Traditionally the last months’ rent deposit is supposed to be used for the actual last month the tenant resides in the unit and is held there so that the tenant can have enough money for the first/last month’s rent at their next place. You can use the rent deposit before that but be sure to put it in writing that the tenant no longer has a rent deposit to be applied to their last month’s rent with copies given to all involved parties.
Q. DOES THE RESIDENTIAL TENANCIES ACT APPLY TO MY PROPERTY IF I’M SHARING A KITCHEN OR BATHROOM?
A. There is a big distinction between a rental unit where the whole property is rented to someone and a property where the landlord is sharing a kitchen or bathroom with a tenant renting a bedroom. In this situation, the rules of the Residential Tenancies Act do not apply and there is more flexibility.
Q. ARE RESIDENTIAL AND COMMERCIAL TENANTS TREATED THE SAME WAY?
A. In Ontario, Commercial leases are addressed by the Commercial Tenancies Act and Residential leases are addressed by the Residential Tenancies Act. For Commercial leases you typically have much greater rites as a landlord to simply change the locks on non-paying tenants. Tenants under Residential leases are afforded much greater protections.
Q. DOES IT CHANGE ANYTHING IF MY TENANT IS A PROFESSIONAL, STUDENT OR CORPORATION?
A. No. I strongly recommend against renting residential property to a corporation because of the limited liability protection the corporation offers the tenant (it can be very hard to go after damages or evict a corporation). Always have someone else added to the lease in addition to a corporation.
Q. IS A GUARANTOR LIABLE FOR ANY DIFFERENT OR NON-PAYMENT OF RENT?
A. If the guarantor has signed the lease and taken on the financial obligations under the lease, then they would become liable for any difference in rent received or the non-payment of rent. However please note that after the initial one year least period has ended, a new guarantor must be created in writing that is signed by the guarantor, otherwise there is no longer a guarantor on the lease.
Q. CAN A LEASE BE TERMINATED IF ONE TENANT IS LEAVING AND ONE WANTS TO STAY?
A. No.
Q. WHAT COSTS BE PASSED TO MY TENANTS?
A. Generally none. You cannot pass mortgage deferral costs to tenants and you cannot charge them interest on any outstanding balances.
Q. WHAT IF MY TENANT IS LYING THAT THEY LOST THEIR JOB?
A. Unfortunately some people will take advantage of the situation or are “professional tenants” abusing the system. Unfortunately there is nothing you can do at this time but if your tenant isn’t willing to work with you and has missed their rent, start the eviction process immediately by filing an N4. Better yet, seek professional help from an outside party to take over the communication with your tenant who knows the facts and eviction process.
Q. CAN I ASK FOR PROOF THAT MY TENANT HAS LOST THEIR JOB?
A. Yes. Someone that is being honest is very likely like to provide verification that they have lost their job but if they say no, you don’t have any recourse but it can change the approach of the conversation you’re having with your tenant.
Q. IS THERE ANY GOVERNMENT ASSISTANCE PROGRAMS AVAILABLE TO LANDLORDS?
A. No. Currently the only option is to defer your mortgage payments through your financial institution and to delay some municipal fees like property taxes (where allowed).
Q. IS THE LANDLORD AND TENANT BOARD CLOSED?
A. No. The Landlord And Tenant Board I still open but most hearings have been suspended. You can continue to file electronically for non-payment of rent and various other topics. You won’t get a hearing date but you will get a file number on your receipt that is required if you want to use a board mediator in assisting you with getting a resolution with your tenant.
Q. DO TEXT MESSAGES COUNT AS “NOTICE” TO TENANTS?
A. Absolutely Not. Notice must be given in appropriate written form, use email instead (if your tenant has consented to receiving notices electronically)
Q. I’M RENTING MY UNIT AS A SHORT-TERM RENTAL, WHAT SHOULD I DO?
A. The Government of Ontario has banned all new short-term rentals for the time being so your only option is to keep your unit vacant or convert it over to a long-term rental that is subject to the Residential Tenancies Act. Consider renting it as a furnished unit because it is already furnished. Some condo buildings notorious for short-term rentals like 12 and 14 York currently have 120 units for lease so expect to get lower rental rates for these situations.
Q. MY TENANT HASN’T PAID BUT WANTS TO LEAVE, WHAT SHOULD I DO?
A. Cut your loses - if your tenant is unable or unwilling to pay but is willing to leave the property, end the tenancy early and get back possession of your property. You can then rent it out again and this way you won’t have to go through the stress and anxiety of the eviction process. Seek profession help though because an N9 (Tenant’s Notice to Terminate the Tenancy) or N11 (Agreement to Terminate a Tenancy) should be signed by both parties to protect yourself in the future.
Q. CAN I SHOW A TENANTED PROPERTY
A. Yes but just don’t do it. If the current tenants say no, there is nothing you can do to force them to show the unit. The best is to have pictures/video/3d tours done of the property so that prospective tenants can view it online. If you do show a tenanted unit, be sure to have the tenants leave while the showing is going on and make sure you follow all appropriate physical distancing steps (wear gloves and a mask, disinfect your hands before going in, no one should touch anything in the unit, distancing in elevators/lobbies, etc.)If the unit is vacant and the building is still allowing showings, then showings of the unit can still occur. Again be sure to follow all appropriate physical distancing steps.
Q. CAN A TENANT ASK TO NEGOTIATE THEIR RENT PERMANENTLY?
A. Yes, a tenant can ask anything but both parties need to come to an agreement. Document everything in writing.
Q. CAN I STILL INCREASE MY RENT THIS YEAR
A. Legally yes but now is generally not the time to be increasing rents. If you already filed your N1 (Notice of Rent Increase), it is still legal. Expect next year’s rental guidance to be 0% or very close to it.
Q. WHO CAN SIGN AN N4 FORM (NOTICE TO END A TENANCY EARLY FOR NON-PAYMENT OF RENT)
A. A landlord or an “Authorized person” who is licensed under the law society of Ontario (lawyer or paralegal). A property manager does not have the authority to sign an N4.
Q. WHAT CAN I DO IF MY TENANT HAS PURPOSEFULLY DAMAGED MY UNIT?
A. Seek professional help as this needs to be addressed on a case-by-case basis.
Q. MY UNIT IS RENTED BY SEVERAL ROOMMATES AND ONE HAS STOPPED PAYING, WHAT CAN I DO?
A. A landlord can only seek payment from named parties on the lease agreement, unless they’re spouses. If one person signed the leased on behalf of the other roommates, they are now joint and severally liable for the entire amount of rent.
Q. ARE THERE ANY RESOURCES FOR SMALL LANDLORDS
A. There aren’t really any professional groups or societies for Small Landlords. Check Facebook because it has many Groups that may be a good resource for you.
Q. WHAT CAN I DO IF MY LEASE IS UP BUT MY TENANT DOES NOT LEAVE THE UNIT?
A. If you have it in writing that your tenant is leaving, there is an application you can file to review when the LTB opens again that will “get you in the queue”, otherwise there likely isn’t much you can do at this time. Seek professional help.
Q. IF MY TENANT DEFAULTS ON RENT, CAN I REPORT IT TO A CREDIT AGENCY?
A. No.
Q. HOW DIFFICULT IS IT TO EVICT LONG-TERM TENANTS?
A. The procedure is the same for all tenant evictions regardless if they have stayed one year or 20. The basis of eviction is non-payment of rent and has nothing to do with the number of years the tenant has spent living in the unit.
Q. WHAT CAN I DO IF MY TENANT IS ALLOWING LARGE GATHERINGS?
A. Report them to the appropriate municipal bylaw office (Dial 311 in Toronto).
Q. WHAT CAN A LANDLORD DUE OUT TENANT’S BRINGING GUESTS HOME
A. Very little. If it is a large gathering report them to the municipal bylaw office.
Q. MY PRE-CONSTRUCTION CONDO NOTIFIED ME THAT CONSTRUCTION IS DELAYED, WHAT CAN I DO?
A. This is a widespread issue because developers are literally unable to continue construction on the buildings as normal. Check with your lawyer but you likely cannot do anything because it is legal for builders to delay construction/occupancy due to unavoidable delays under Tarion Warranty and your agreement likely includes terms to this effect.
Q. CAN I DEFER MY CONDO FEES?
A. No. We have not heard of a single building that has allowed the deferred of condo/maintenance fees. This is because condos have a time frame with which they need to put a lien on your property for non-payment, so if they allow you to defer your payment, they will lose that right.
Q. WHAT HAPPENS IF A TENANT PAYS THEIR OUTSTANDING BALANCE?
A. If at any time in an arrears application process the tenant pays all of their outstanding balance, then the N4 process if finished. You can no longer evict them for non-payment of rent.