Evicting Rent-to-Own tenants

[antaynguy]

Hello fellow REIN members,



I almost had to evict a rent-to-own tenant and contacted a guy that usually do the eviction paperwork for me to evict tenants. However, he said he doesn't do rent-to-own eviction as it is different and more complicated and referred me to what I think is a litigation lawyer. I went and met with this lawyer. The meeting didn't go well with many phone distractions on his cell. In the end I didn't get answers to what I came for and he had to leave so I had many questions still unanswered. After the meeting his assistant told me that I need to sign an client agreement before he can work with me in the future and that I would need to put $500 in trust right away, even though there is no case to work on right now. Is this normal? I really don't like the idea.



Back to the main point of my post. My question is how do we evict rent-to-own tenants? Can we follow the same process as evicting the regular tenants? I use the separate lease agreement and option agreement from Barry.



Thanks,

Hanna & An Tay

 

[markl]

The reason your paralegal said they do not do it is they do not understand it.



What you have is a lease which is in default. Therefore the paralegal should take appropriate action on that lease. The option has no effect whatsoever on anything as by being in default of the lease they have defaulted on their option therefore it is nul and void.



Evict them on the lease.



Regards,

 

[GaryMcGowan]

What province is the property is the property located in?



In Ontario we follow the Landlord Tenant Board's guidelines for eviction. Same rules for a RTO Tenant or Regular Tenant.

 

[antaynguy]

Thanks for your advice Mark, Garry.



We're in Calgary, AB.



Hanna

 

[ChrisDavies]

I second Marks' comment. In Alberta, when you have a sperate lease which makes no reference to the option, just file at RTDRS as normal and away you go.



Two other comments. When it comes to evictions there's no 'almost'. They're either in breach or not, and you either evict them, or you don't. I assume they got caught up on their rent, even though they've probably lost the option to purchase.



The second is that the client agreement and trust funds is probably pretty normal. Barry or another lawyer can clarify but litigation lawyers need to see the money/light at the end of the tunnel.

 

[mcilroy]

So Chris when setting up a rent to own a landlord should use a standard lease with no reference to the option credits. Is that correct?

 

[markl]

Kelly are you in Alberta if so I recommend touching base with Barry Mcguire he has set up a great document to use.



But no matter where you are the lease does not mention the option agreement.



Regards,

 

[smmcguire]

Mark

Do you recommend anyone (paralegal) in Ottawa who handles eviction. Like to be prepared if anything goes sideways. I remember you recommended Kathleen Paliwoda, but I don't think she works in Ottawa.



Thanks

Steve

 

[ChrisDavies]

That's correct. Your lease should not reference the option, but your option should mention the lease, specifically how breaking the lease will cause you to default on your option.