Tenant Leaving Prior to End of Lease

[CollegeRentals]

I’m a relatively new investor with Student Rentals specifically located in Hamilton and Brantford.



Here’s the case:



One of my Hamilton properties has (6) Students, each on individual leases (September ‘09 – April ’10). As I’m trying to do everything by the book I advised they pay by Post-Dated Cheques, but did not require them to do so (unlike many other Hamilton Student Rental Investors). (3) Students paid with Post-Dated Cheques, the other (3) did not.



I sent an email the other day and advised the (3) students that I would be at the house on December 1[sup]st to collect their rent. At the same time I asked what their plan was for January 1[sup]st, as I presumed they would be out of town with family for the Christmas holidays. At that time (2) of them replied that they “had enough cheques to pay for December, but not for the January rent and asked to pay it upon their return from holidays on January 4th[/sup].”



I find it rather “convenient” that two of these three students are out of cheques. My fear is that the fall school term is coming to a close and their intentions were only to stay at the house for (4) of the (8) months - and they will move out as they leave for Christmas. With that said, both these students have been great tenants to date.



My reaction to their email was that they go to their local bank branch and ask for one cheque (which the banks typically provide free of charge). They post date this cheque for January 1st[/sup] and provide it to me prior to leaving for the Christmas Holidays. I’ve yet to hear a response as of yet from the students, but am hoping to get one tonight when I pickup the December Rent Cheques.



I’m trying to be as proactive as possible given my fear that they may bolt on the final four months of their lease obligations.



Here’s my questions for you:

1. Is there anything proactive I can do leading up to January 1[sup]st?

2. What LTB notices should I file on January 2[sup]nd[/sup], given there are still (4) month’s rent remaining to be paid on their lease?

3. If they have moved out prior to January 1st[/sup] without notice to end tenancy, do I have to go through Small Claims Court instead of the LTB? If so any idea on the costs?



The one other element that comes into play is that the both of these students had their parents co-sign the lease. As such I have their parents address, phone number, etc. should I need to file any legal notices or suits.



Any advice is appreciated!

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Cheers,

Cameron

 

[orei]

You should make it a priority to educate yourself on the system that is in place. I would suggest the following as a great starting place (it was for me!):
http://www.ltb.gov.on.ca/en/STEL02_111286.html

I suggest you book a walk through for the end of December - you should be able to see if there is an intention to move out. Also, talk to your bank about collecting rent using PAP (pre-authorized payment).

I would not panic if the students have been timely with their payments so far. Why don`t you suggest that they mail you the cheques for January 1st? Inform them that if the cheque has not been received they are late and that an N4 form will be delivered.

 

[Alvaro Sanchez]

I second the PAP option but an easier one for now is to ask your tenants who do not have the cheques to use interact email money transfers. All my tenants are using this method. So there is no need for cheques, clearing them, etc.

You should make it a priority to educate yourself on the system that is in place. I would suggest the following as a great starting place (it was for me!):
http://www.ltb.gov.on.ca/en/STEL02_111286.html

I suggest you book a walk through for the end of December - you should be able to see if there is an intention to move out. Also, talk to your bank about collecting rent using PAP (pre-authorized payment).

I would not panic if the students have been timely with their payments so far. Why don`t you suggest that they mail you the cheques for January 1st? Inform them that if the cheque has not been received they are late and that an N4 form will be delivered.

 

[invst4profit]

Tonight ask each one straight up if they are planing on walking out on there lease.
THEN:

Tell them if you do not get paid on Jan 1 you will issue a N4 eviction notice.
Tell them they are responsible for the duration of the lease unless they find a acceptable replacement.
Tell them you will go to both the LTB and small claims court for full money owed plus expenses.
Tell them they and/or there parents will be required to appear back in your city for the hearings.
Tell them when you win, and you will win, if they do not pay all monies owing there parents wages will be garnished and a negative report will appear on there parents credit score.
Tell them all of this regardless if they say they are returning.
Do this for all your tenants not just the ones you suspect of leaving.
Personally I would put it in a letter, give it to them as you explain and ask if they require a copy sent to there co signers.

As far as the costs of small claims court are concerned it is not much, I don`t remember exact numbers, but when you win you will get all costs as part of the settlement plus financial compensation for your time. Small claims is the best route to go but I would still go the LTB first as that settlement can be recorded directly with the courts.
Make sure you check out the house and include damages on top of everything else.

Don`t worry about coming on to strong just tell them it is your common business practice speech in December as you know many students do not return in January and you are aware that most students are ill informed of there legal obligations in the lease.

Going after there co signers wages and credit score should put the fear of something in them. You could also let them know a bad credit score will also prevent them from getting a car loan or any other type of loan for that matter.

Good Luck.

 

[CollegeRentals]

Thanks for all the prompt responses! I`ll keep you updated on my discussions with the tenants this evening.


Cheers,
Cameron

 

[housingrental]

Hi Cameron

I`d suggest you should structure your leases in the future so that you don`t pickup rent - make tenants responsible for getting it to you for the first if not providing post dated cheques.

To answer your questions:

1) Phone the guarantors, let them know tenant said they were unable to provide rent on the first and they were required to for then and you want guarantor to provide it.

2) Likely won`t be needed. Contact guarantors. Guarantors will likely issue payment. If not at that point in January you can provide 14 day notice to end tenancy or apply directly to ltb for an order for payment.

3) From your post there doesn`t seem to be a lot of reason to expect this will happen. You should contact your tenants immediately and discuss there intentions with them. If they`re bailing you need to try to re-rent out the property to mitigate damages... start right away... Let tenants know that they are required to pay rent until the end of their lease, you`ll try to re-rent it, the need to pay until property is re-rented, and property might not get re-rented. It is a requirement that you try to re-rent out the property. You can then go to court if any funds are owing and tenants and guarantor won`t pay. Also inform guarantors on above.



QUOTE (CollegeRentals @ Dec 1 2009, 12:27 PM) I`m a relatively new investor with Student Rentals specifically located in Hamilton and Brantford.



Here`s the case:



One of my Hamilton properties has (6) Students, each on individual leases (September `09 – April `10). As I`m trying to do everything by the book I advised they pay by Post-Dated Cheques, but did not require them to do so (unlike many other Hamilton Student Rental Investors). (3) Students paid with Post-Dated Cheques, the other (3) did not.



I sent an email the other day and advised the (3) students that I would be at the house on December 1[sup]st to collect their rent. At the same time I asked what their plan was for January 1[sup]st[/sup], as I presumed they would be out of town with family for the Christmas holidays. At that time (2) of them replied that they "had enough cheques to pay for December, but not for the January rent and asked to pay it upon their return from holidays on January 4th[/sup]."



sizeo-->I find it rather "convenient" that two of these three students are out of cheques. My fear is that the fall school term is coming to a close and their intentions were only to stay at the house for (4) of the (8) months - and they will move out as they leave for Christmas. With that said, both these students have been great tenants to date.



My reaction to their email was that they go to their local bank branch and ask for one cheque (which the banks typically provide free of charge). They post date this cheque for January 1[sup]st and provide it to me prior to leaving for the Christmas Holidays. I`ve yet to hear a response as of yet from the students, but am hoping to get one tonight when I pickup the December Rent Cheques.



I`m trying to be as proactive as possible given my fear that they may bolt on the final four months of their lease obligations.



Here`s my questions for you:

1. Is there anything proactive I can do leading up to January 1[sup]st?

2. What LTB notices should I file on January 2nd[/sup], given there are still (4) month`s rent remaining to be paid on their lease?

3. If they have moved out prior to January 1st[/sup] without notice to end tenancy, do I have to go through Small Claims Court instead of the LTB? If so any idea on the costs?



The one other element that comes into play is that the both of these students had their parents co-sign the lease. As such I have their parents address, phone number, etc. should I need to file any legal notices or suits.



Any advice is appreciated!



Cheers,

Cameron

 

[flanabum]

QUOTE (CollegeRentals @ Dec 1 2009, 12:27 PM) I`m a relatively new investor with Student Rentals specifically located in Hamilton and Brantford.

[/size]

Here`s the case:



One of my Hamilton properties has (6) Students, each on individual leases (September `09 – April `10). As I`m trying to do everything by the book I advised they pay by Post-Dated Cheques, but did not require them to do so (unlike many other Hamilton Student Rental Investors). (3) Students paid with Post-Dated Cheques, the other (3) did not.



I sent an email the other day and advised the (3) students that I would be at the house on December 1[sup]st to collect their rent. At the same time I asked what their plan was for January 1[sup]st[/sup], as I presumed they would be out of town with family for the Christmas holidays. At that time (2) of them replied that they "had enough cheques to pay for December, but not for the January rent and asked to pay it upon their return from holidays on January 4th[/sup]."



I find it rather "convenient" that two of these three students are out of cheques. My fear is that the fall school term is coming to a close and their intentions were only to stay at the house for (4) of the (8) months - and they will move out as they leave for Christmas. With that said, both these students have been great tenants to date.



My reaction to their email was that they go to their local bank branch and ask for one cheque (which the banks typically provide free of charge). They post date this cheque for January 1[sup]st and provide it to me prior to leaving for the Christmas Holidays. I`ve yet to hear a response as of yet from the students, but am hoping to get one tonight when I pickup the December Rent Cheques.



I`m trying to be as proactive as possible given my fear that they may bolt on the final four months of their lease obligations.



Here`s my questions for you:

1. Is there anything proactive I can do leading up to January 1[sup]st?

2. What LTB notices should I file on January 2nd[/sup], given there are still (4) month`s rent remaining to be paid on their lease?

3. If they have moved out prior to January 1st[/sup] without notice to end tenancy, do I have to go through Small Claims Court instead of the LTB? If so any idea on the costs?



The one other element that comes into play is that the both of these students had their parents co-sign the lease. As such I have their parents address, phone number, etc. should I need to file any legal notices or suits.



Any advice is appreciated!



Cheers,

Cameron


I would tell them that you must have the rent before the 1st of each and every month.......they can do an email transfer of funds if they have run out of cheques.....most major banks do and accept email tranfers ( and only costs $1.50) The money goes to your account as soon as you access the email....it is awesome! In fact I am using it this month for a student who was to meet me in Brnatford yesterday to sign lease, get keys and give me a deposit cheque, and his post-dated cheques. They couldn`t make it, and I can`t meet them any other day , so I told him that I would turn over the keys only after I recieve their email money transfer.
If my tenants are late with rent they know ( because it is also noted on the lease) that it is an automatic $25 charge. Another thought.....Most students are heading home next week....so they have plenty of time to put a cheque in the mail for you to recieve it before the 1st of jan. I think the main issue is , you need to tell them how it is going to work, don`t let them tell you !
I hope this helps
Sue Flanagan