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Additional person (boyfriend) in apartment

NorthernAlex

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Hello everybody.

Out of the nutshell:
Rental agreement shows two parties as tenants. Now there is a third person receiving mail, too and is around alot (boy friend). I talked to him a couple weeks ago, but he said the is just visiting her as he lives 150km away). I assumed already that he was living here, but I did never came on time to check the post box or had any proof. Today I did as I was around when the post man dropped it off.

Rent is $1000 inclusive all. As I am paying hydro and water I would like to increase the rent because of the higher usage of three persons instead of two.

Do I just write a letter and say that rent is going up now as he is living here (receiving mail- today even his tax return)? Do I need a grace periode? What amount is legitimate, as utilities are approx. $200?
 

Fortuneinvesting

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QUOTE (NorthernAlex @ Apr 7 2009, 09:54 PM)
Hello everybody.



Out of the nutshell:

Rental agreement shows two parties as tenants. Now there is a third person receiving mail, too and is around alot (boy friend). I talked to him a couple weeks ago, but he said the is just visiting her as he lives 150km away). I assumed already that he was living here, but I did never came on time to check the post box or had any proof. Today I did as I was around when the post man dropped it off.



Rent is $1000 inclusive all. As I am paying hydro and water I would like to increase the rent because of the higher usage of three persons instead of two.



Do I just write a letter and say that rent is going up now as he is living here (receiving mail- today even his tax return)? Do I need a grace periode? What amount is legitimate, as utilities are approx. $200?




Just thinking out loud but theoretically they should be consuming more utilities and you should have all the bills from the last while that would show that increase if you needed extra support other than "I saw your mail"
 

invst4profit

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What you can do and what you may try and do are two different things. In Ontario the LTB will not permit you to raise the rent nor will they allow you to evict the new tenant unless the additional tenant violates the allowable occupancy rate.
What you can do is hope that they are responsible individuals that will respect your requests.
I would write your tenants a letter immediately clearly stating that you are aware of the boyfriend and ask they pay an additional amount to cover additional utility costs or he must vacate the unit. If they agree I would suggest they sign a new lease at the higher rate and include the third person on the lease. Make sure you do a credit check first, on the boyfriend, if they agree to a new lease. The upside, if they agree, is you now have a new higher rent for your apartment.
They may willingly agree, if not you have a problem all too common to Ontario landlords.
Your only option then will be to make there lives miserable in order to encourage all of them to move out.
Hopefully they will be understanding and pay the extra utilities.
 

Marek2086

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We have experienced this in the past. Again in Ontario you are legally allowed to raise the rent 1.8% for this year. So that would be $18 every 12 months.That is better than nothing. This happens often so I would not worry about it too much. I would take the advice from above and create a win win situation where he does not need to hide and where you`re getting compensated for the extra use of the apartment and the extra cost of utilities. Ask yourself how much would you have rented this unit out for if 3 people where to move in at that time. I have never seen an ad for a rental where it specifically stated $1000 for a 2 person occupancy and $1100 for a 3 person occupancy. But maybe your situation is different especially if you have seen a significant increase in cost of utilities. Also please note the allowable occupancy rate is like one person per 12sqft of floor space or something silly like that. So they are not breaking any laws and the tribunal will not allow you to evict someone just for this reason. Even if they`re breaking the terms of the lease agreement. Please note it has been a couple of years since I looked into this so please confirm with the authorities. I would not worry about it if the rent you`re getting is close to market rent and especially if they`re good tenants that do not complain.
 

invst4profit

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Should also have mentioned you need to speak to them face to face immediately.
Explain the situation requesting the extra payment and that they will be receiving a letter, if not already received, as advised by your lawyer.
Any time I deal with an issue such as this or late payments etc. I always make reference to the LTB (N4) or my lawyer to make it sound more official and deflect there attention.
 

Nir

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You got some great advice above Alex,

Sure, try negotiating rent etc. just keep in mind him moving in is legal and legitimate. perhaps unfortunate for us landlords but we should respect that.

Cheers,
Neil
 

NorthernAlex

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Indeed, great advice, Marek, Greg and Neil.

I was totally wrong with my "feeling" as in Germany it is covered differently. If you have an agreement with two- you, as a landlord, have to be informed that someone else is moving in if you have an "all inclusive" rent. The "all inclusive" rent is calculated for two tenants and not for three, so you could adjust. I were just "teleporting" this from there to here, which is wrong.

I will contact talk to them as the girls are very nice tenants and try to be `as handy as possible` without bothering me. I appreciate and honor that. Talking to them and showing my side of the story I hope/think that they will agree to some compensation without playing hardball.

Anyhow, great learning more from you guys, thank you very much for increasing my knowledge! There will be more questions come in the future- sorry about that ........not!
))
 

housingrental

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I`d take some issue with the advice above

The best response is due nothing

It`s none of your business

As noted above also if they had originally rented it as a group of three there rent would have been the same

Also as not noted above you don`t even know for sure if he`s staying there full time....lots of people receive mail at a place they don`t live at...I`ve done this ... this is especially common when your renting places for shorter terms... think university students.. think certain workers who might have jobs in different towns every 6 months... think doesn`t trust his roommates.. think girlfriend does his administration for him...

Don`t create a situation where your damaging relations with your tenants when they`ve done nothing wrong. At best you`ll make dealing with them harder, at worst you`ll provide them with bs evidence to use against you at LTB hearing in future.

I strongly disagree with invst4profit`s post re "Any time I deal with an issue such as this or late payments etc. I always make reference to the LTB (N4) or my lawyer to make it sound more official and deflect there attention." Try to avoid this.. the rules are stacked against you and you don`t want to unnecessarily have them looking into ways to make your life more difficult by stricking fear of legal action against them.

re Marek5`s post - I think, but I`m not certain, the provincial legislation (fire code ? ) was recently changed (a year ago ? ) so that you can`t have more than four unrelated people sharing a unit without certain criteria being met however municipalities have additional laws... so in Waterloo you can`t have more than three people unrelated in a unit without a lodging house license in a smaller plex or house.
 

invst4profit

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housingrental:

As a seasoned landlord I have issues with your management approach.

To suggest that what goes on in your property is "none of your business" is foolhardy. This approach in Ontario will get you in over your head very quickly. Good luck if you have a bad tenant or heaven forbid a professional tenant. Your comments makes it sound (perhaps wrongly) like you are afraid of your tenants and operating your business accordingly.
A landlord needs to stay on top of everything that goes on and maintain a ongoing dialogue with there tenants when something changes. Be firm they must learn who is in charge.
This is one of my major complaints against management companies. The sloppy ones allow all types of infractions and "issues" to continue, unaddressed, out of avoidance and laziness until a situation is beyond repair.

Talk to your tenants, if something is changed or wrong address it immediately. Use your landlord "people skills" to your advantage. Landlords need to be proactive and not avoid confrontation.
In this case having two tenants on a lease and suspecting there is now a third tenant means they "may" HAVE DONE SOMETHING WRONG. You need to find out by direct contact with the tenant. Provide supporting evidence.
If addressing issues is damaging relations either you have poor people skills or a bad tenant.

As far as referencing the LTB, your lawyer or accountant this is intended to educate your tenants not threaten them. They should perceive you as a sophisticated landlord thus directing any issues they may have with the "notice" somewhat away from you personally. Again use your people skills.
Follow the rules, bend them if necessary but never fear your tenants.

As far as the LTB is concerned for landlords good, bad or indifferent we all get treated the same. If you go be professional, cross every T, dot every i, pray if you think that will help.
 

NorthernAlex

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Feedback from me:

Talked to the couple and they were not trying to hide it, but wanted to "try if it works out living together". As they are good tenants (as mentioned above) the deal is 25$/month (new rental agreement) and he will also take care of the liter on the property and keep it neat.

I am very okay with that. I like a proactive approach from both sides. Give and take.
 

DOZAH

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Well done Alex, $25 seems a little on the low end but it is better than nothing and now you guys have open dialogue.

I had this same issue with one of my basement suites.
Two gals originally rented the place, great tenants for first four months. All of a sudden I notice one of the girls had her 18 year old brother move in with them because he`d been kicked out of his house by his parents for cocaine use. I wish that was all.
The brother had a younger girlfriend who also proceeded to move in. Now the second girl who was sharing the apartment had gotten fed up because she couldn`t stand the situation anymore and I was left with 3 delinquents.
I had spoken to these 3 bundles of joy and happiness and had offered to give them enough money to put a deposit for a new apartment and leave my place. They refused.
...Wrong choice.
I include internet, cable and all utilities so that same day I had gotten the password changed on the internet network so that they had no access to it. I shut off access to Rogers Cable TV and I unplugged and removed the washer and dryer.

They stayed another night before calling me and reluctantly taking me up on my offer.
I promised them $600 upon seeing a clean and rentable apartment in move in condition.
They held up their end and I gave them the $600.

Sometimes it`s better to bite the bullet ($600) and play hard ball than spend 2 months trying to evict those 3 clowns.

You live , you learn.
Fcuk I hate Ontario LTB !
 

invst4profit

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Congratulations Alex. They sound like keepers but watch the new guy.
Are you going to follow up with a credit check.
Remember some girls make poor choices when it comes to boyfriends (first hand knowledge with daughter).

I agree with your sentiment on the LTB DOZAH
 

Nir

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QUOTE (invst4profit @ Apr 9 2009, 05:18 AM)
Remember some girls make poor choices when it comes to boyfriends




My ex included :)
 

invst4profit

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My son in law would not pass my screening process because of his bad credit score.
They are actually a good couple of kids they just do not meet my minimum requirements.
I also have a rule, no friends or family.
 

housingrental

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"To suggest that what goes on in your property is "none of your business" is foolhardy. " - In reference to the original post I stand by this. If your tenant is making reasonable use of the place, not damaging the property, paying rent, and abiding by by-laws and rta it's none of your business. This applies to the post as well as many other landlord concerns I hear.



"This approach in Ontario will get you in over your head very quickly. Good luck if you have a bad tenant or heaven forbid a professional tenant. Your comments makes it sound (perhaps wrongly) like you are afraid of your tenants and operating your business accordingly." I've had bad tenants. I've seen it all. I have hundreds of tenants. It's not advisable to threaten your tenant. Keep emotions out of it and be process oriented.



A landlord needs to stay on top of everything that goes on and maintain a ongoing dialogue with there tenants when something changes. Be firm they must learn who is in charge.

This is one of my major complaints against management companies. The sloppy ones allow all types of infractions and "issues" to continue, unaddressed, out of avoidance and laziness until a situation is beyond repair. I do stay on top of things.. and proactively deal with items.. however in this case there's nothing to be firm on - the tenant is within their right. Not to justify bad service - I aim to provide great service but appreciate there are many OK and many outright TERRIBLE PM companies - But in this particular case if the owner wanted the pm to do something on this the pm should both due nothing and communicate why to the owner.



"Talk to your tenants, if something is changed or wrong address it immediately. Use your landlord "people skills" to your advantage. Landlords need to be proactive and not avoid confrontation.

In this case having two tenants on a lease and suspecting there is now a third tenant means they "may" HAVE DONE SOMETHING WRONG. You need to find out by direct contact with the tenant. Provide supporting evidence.

If addressing issues is damaging relations either you have poor people skills or a bad tenant."What have they done wrong ? You don't that this person is living their on an ongoing basis, or plans to be.



"As far as referencing the LTB, your lawyer or accountant this is intended to educate your tenants not threaten them. They should perceive you as a sophisticated landlord thus directing any issues they may have with the "notice" somewhat away from you personally. Again use your people skills.

Follow the rules, bend them if necessary but never fear your tenants. " I disagree. If you need to servce notice serve notice. If you want to try to create an unnecessary war and have them start researching ways to screw you over your approach is the way to go.







"As far as the LTB is concerned for landlords good, bad or indifferent we all get treated the same. If you go be professional, cross every T, dot every i, pray if you think that will help." True and trying to demand more money from your tenant on this is NOT professional.
br />




QUOTE (invst4profit @ Apr 8 2009, 02:46 PM)
housingrental:



As a seasoned landlord I have issues with your management approach.



To suggest that what goes on in your property is "none of your business" is foolhardy. This approach in Ontario will get you in over your head very quickly. Good luck if you have a bad tenant or heaven forbid a professional tenant. Your comments makes it sound (perhaps wrongly) like you are afraid of your tenants and operating your business accordingly.

A landlord needs to stay on top of everything that goes on and maintain a ongoing dialogue with there tenants when something changes. Be firm they must learn who is in charge.

This is one of my major complaints against management companies. The sloppy ones allow all types of infractions and "issues" to continue, unaddressed, out of avoidance and laziness until a situation is beyond repair.



Talk to your tenants, if something is changed or wrong address it immediately. Use your landlord "people skills" to your advantage. Landlords need to be proactive and not avoid confrontation.

In this case having two tenants on a lease and suspecting there is now a third tenant means they "may" HAVE DONE SOMETHING WRONG. You need to find out by direct contact with the tenant. Provide supporting evidence.

If addressing issues is damaging relations either you have poor people skills or a bad tenant.



As far as referencing the LTB, your lawyer or accountant this is intended to educate your tenants not threaten them. They should perceive you as a sophisticated landlord thus directing any issues they may have with the "notice" somewhat away from you personally. Again use your people skills.

Follow the rules, bend them if necessary but never fear your tenants.



As far as the LTB is concerned for landlords good, bad or indifferent we all get treated the same. If you go be professional, cross every T, dot every i, pray if you think that will help.
 

housingrental

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Disappointing. And yet some people wonder why landlords are universally panned ?


QUOTE (NorthernAlex @ Apr 8 2009, 07:02 PM) Feedback from me:

Talked to the couple and they were not trying to hide it, but wanted to "try if it works out living together". As they are good tenants (as mentioned above) the deal is 25$/month (new rental agreement) and he will also take care of the liter on the property and keep it neat.

I am very okay with that. I like a proactive approach from both sides. Give and take.
 

gregg

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See what you started Alex! You ended up doing the right thing afterall. Talking to them is most important, getting as much information as possible through this forum is also important. Not only that, it gives everyone an opportunity to discuss the issues and we all come out of it with more insight.
I collect rents every month because it gives me another opportunity to communicate with what I call my client base. With small exception they are all great people and once they have been chosen they get the royal treatment. Firm but fair is my motto. Congratulations on your outcome. Everyone has an opinion and not everyone is going to agree with various points of view but we are here to help each other and I think all your contributors had excellent points of view and each had something positive we can all take away.

Gregg
 

NorthernAlex

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I really must say that I am extremely happy to have this amount of backup thru this forum (Forum Members as much as Rein Members) and really enjoy any kind of feedback- particularly if I was on the wrong track in the beginning (like in this case).

Adam, I didn`t understand your reply. Why is my solution disappointing and throws a bad light at landlords? I think they and I have a real win/win here!
 

housingrental

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" Adam, I didn`t understand your reply. Why is my solution disappointing and throws a bad light at landlords? I think they and I have a real win/win here! " You shouldn`t be charging $25 more.


QUOTE (NorthernAlex @ Apr 10 2009, 05:00 PM) I really must say that I am extremely happy to have this amount of backup thru this forum (Forum Members as much as Rein Members) and really enjoy any kind of feedback- particularly if I was on the wrong track in the beginning (like in this case).

Adam, I didn`t understand your reply. Why is my solution disappointing and throws a bad light at landlords? I think they and I have a real win/win here!
 

NorthernAlex

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I hate to rent out with an "all inclusive" rent, as someone is always losing money.

a) The tenant in paying too much or b) the landlord in getting not enough. I don`t like a) nor b).

They also refused to change the conditions "without utilities" in the new rental agreement as they are fully aware that they are better positioned price wise compared to any other apartment in this neighborhood. My new rentals in this house won`t be all inclusive.

These tenants were inherited thru the purchase a couple weeks ago, but live there already a few years. During this time the city added individual water meters away from flatrate water and last year individual hydro meters. Additionally to that: the old landlord "forgot" to increase his possible rent for the last couple years.

Adam, do you use the annual possible rent increase given in Ontario or is this disappointing, too?

Disapointing or not- I fully communicated that they legally would not have to pay a cent more and I could not do anything about it, but am hoping and asking for their help as they could see the difference I made in the 8 weeks since I have the building to the last 5 years of the previous slumlord.

As I mentioned it before: Give and take!
 
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