14-day notice (Alberta) - what`s the point?

[Nicola]

Hello,

I`m trying to find out what the point of a 14-day notice is in Alberta. My PM has issued them to tenants, but then nothing actually happens. I`ve read the RTA and searched this forum and the internet, and I can`t find a clear explanation.

If one were to follow through with the notice, what would happen (assuming the tenant doesn`t pay in the meantime)? Does it just assume that the tenant will be cooperative and move out when the notice expires?

If they don`t move out, is the tenancy agreement terminated? Then what? How do you actually legally get them out if they don`t go voluntarily? Can you get a writ of possession right away?

What if the tenant gets repeated 14-day notices? Is this a "substantial breach", and does it change anything?

I know everyone says to go to the RTDRS (and not bother with 14-day notices at all), but before the RTDRS existed, what did people do?

I`m thinking there still must be some purpose to the 14-day notices...?

Thanks,
Nicola

 

[brentdavies]

The Alberta 14 day notice is actually a 16 day notice period, which is issued for substantial breach of lease. You must allow for day of service and the last day does not count. Hence 16 days.

The most common breach is for non payment of rent. If the rent is paid within the period ( 16 days), the notice is void. But if the tenant does not pay the rent within the time period, then the tenancy is terminated. Most tenants (98%) either pay up or move. The other 2 % need a push to get them out the door. An writ is still required to remove the tenant if they don`t move.
Tenants can be late every month, and this can be cause for a writ if you go to court.

Late fees help to get the tenant to pay sometimes. Rent increases are helpful in getting the tenant`s attention.

Alberta dispute service is quick and cheap method of getting a writ vs going to Queens Bench.

As you are managing your property from a distance, what is the concern when in the month the tenant pays? The tenant paying on the 10th is a property management issue, and should not be a concern of long distance owner. Providing the tenant does pay!

Why did you rent to the tenant in the first place?

Did you keep your property available for a GREAT tenant, or just fill the space to the first person with cash?

 

[RebeccaBryan]

I have issued a 14-day notice for non-payment of rent 4 times. That was before I discovered the RTDRS. Not once did the tenant pay up. Professional Tenants know their rights and how long it takes to resolve something through the court system. When I present a notice from the RTDRS professional tenants are shocked at my knowledge as now they must scramble to update their system (which is to rip off vulnerable uneducated gullible landlords). I just hand it to them politely and tell them if they have any questions they can call the number provided on the hearing notice.

If you`re so sure the 14-day notice is going to work, why are you worried about paying the $75 fee at the RTDRS? The fee is charged back to the tenant if they intend to pay you and show up at the hearing, or you can cancel the hearing if they pay their rent and the fee back to you.

Because I don`t usually follow up and go after lost rent, I need to make certain I screen tenants properly using the REIN system to avoid eviction. If I do end up in an eviction situation, it is then important to act as quickly and efficiently as I can in order to cut my losses. Using a 14 day notice slows the process if they do not pay increasing my chances of not only losing one months rent, but two.

I like to get negative energy out of my head as quickly as possible. That`s why I act quickly and don`t pursue the lost revenue. I value my time and it`s better spent building my business or spending time with my family.

 

[Nicola]

QUOTE (brentdavies @ Jun 29 2009, 11:55 PM) The Alberta 14 day notice is actually a 16 day notice period, which is issued for substantial breach of lease. You must allow for day of service and the last day does not count. Hence 16 days.

The most common breach is for non payment of rent. If the rent is paid within the period ( 16 days), the notice is void. But if the tenant does not pay the rent within the time period, then the tenancy is terminated. Most tenants (98%) either pay up or move. The other 2 % need a push to get them out the door. An writ is still required to remove the tenant if they don`t move.
Tenants can be late every month, and this can be cause for a writ if you go to court.

Thank you - this kind of answers my question. So once they haven`t paid, you need to go Provincial Court/ Court of Queen`s Bench(?) to get a writ? Then if they don`t leave, hire a bailiff?

QUOTE As you are managing your property from a distance, what is the concern when in the month the tenant pays? The tenant paying on the 10th is a property management issue, and should not be a concern of long distance owner. Providing the tenant does pay!

Yes, I`m managing from a distance. My concern is when they don`t pay until too late in the month and I don`t get paid (or when they are still in partial arrears by the end of the month). I think it`s also not a good precedent to set to say that it`s OK if they pay by the 10th.

QUOTE Why did you rent to the tenant in the first place?

Did you keep your property available for a GREAT tenant, or just fill the space to the first person with cash?

My property manager rented to this tenant and as far as I know screened the tenant appropriately. Are they GREAT tenants? No, but they were OK for over a year.

I`ve had bad tenants put in and/or "enabled" by a couple of the most recommended property managers in Edmonton.

 

[brentdavies]

Hi,

At least in Alberta you can remove a tenant fairly easily, compared to a few stories from Ontario.

You have 3 choices to get a writ, Provincial Court, Queens Bench, and now Rtdrs, available in Calgary now.

The quickest is rtdrs, and Rebecca has done a lot of posts on the process. For the first time, hire a bailiff service to go through the process for you, such as Serv-it or Consolidated Rockingham.

Other alternative is have "push" the tenant out the door by talking to them and asking them to leave, or raising the rent to way above market rent ( can be a very dangerous strategy). Sometimes a for sale sign on the lawn will chase a tenant out faster than an eviction notice. Placing a big for sale sign in front of a multi unit building will clear out about 1\2 of the tenants in a month or so. Just make sure to your asking price is high.

Late payments do make it difficult for you to manage your cash flow. So if the rent is paid too late in the month for your property manager to forward to you, that is an issue.

As a property manager watching great tenants turn into good tenants, then bad tenants, and then self destruct as tenants and in their personal life; and finally eviction; is one of the most difficult aspects to the property managers job. The opposite, is the joy of watching tenants grow and move forward, when they announce they bought their first property, and are giving notice to move. I am sorry to see them leave, and I wish them well as they personally grow as property owners. I want all my tenants to succeed.

After many years in the business, I still make mistakes and pick the wrong tenant once in a while. Correct your mistake and move on.

 

[Nicola]

Rebecca and Brent,

Thanks for your replies. I agree with both of you that it`s best just to move on and get rid of the negativity. Regarding the RTDRS, it is not the fee that is an issue. Rather, it is our property manager who is reluctant to go that route - they think the 14-day notice is a better way to collect rent. They also think the RTDRS will be sympathetic to the tenants since they have been paying at least some of the rent.

What I`m really wondering is now that the tenants have been given three 14-day notices, what is the best way to proceed? As I understand it, if they don`t pay by the end of the notice period, then the tenancy is terminated. But, actually, so far each month they`ve made partial payment before the notice expires - how does this affect the notice?

Regarding costs, either way we have to hire a bailiff service, as our PM doesn`t do it. Therefore (from looking at the Serv-It list of fees), there is little difference in cost between getting an RTDRS order and a Court of Queen`s Bench order.

Thanks.

 

[dcres]

If you follow the law for evictions, serving your tenant with the 16 day notice, then follow up with a court appreance, which can take up to 10 days before you get a date. This is now almost a month of free rent. In my frustration I have on at least one occasion changed the locks barring the tenants entry, which is illegal, but so is ripping off the landlord.
In Alberta we have an outdated system written by bureaucrats, who have never rented to anyone. In some countries tenants can be put on the street within 24 hours.
I am running a business not a shelter. Extreme situations require extreme actions.

 

[Nicola]

QUOTE (dcres @ Jul 10 2009, 12:47 AM) If you follow the law for evictions, serving your tenant with the 16 day notice, then follow up with a court appreance, which can take up to 10 days before you get a date. This is now almost a month of free rent. In my frustration I have on at least one occasion changed the locks barring the tenants entry, which is illegal, but so is ripping off the landlord.
In Alberta we have an outdated system written by bureaucrats, who have never rented to anyone. In some countries tenants can be put on the street within 24 hours.
I am running a business not a shelter. Extreme situations require extreme actions.

Yes, I understand that there is a delay, but the notice(s) was(were) already served by my PM. I`m wondering if there is some advantage in that you can get a Writ of Possession immediately from the court, whereas the RTDRS may give a Cinderella order and allow the tenant to stay with a payment plan. Then if they still don`t pay, you have to go to court(?) for a Writ(?)

I`ve also heard that the RTDRS is backed up about 3 weeks(?)

In any case, the point is now moot, as the tenant has skipped out - big surprise...

 

[RedlineBrett]

QUOTE (Nicola @ Jul 10 2009, 07:57 PM) Yes, I understand that there is a delay, but the notice(s) was(were) already served by my PM. I`m wondering if there is some advantage in that you can get a Writ of Possession immediately from the court, whereas the RTDRS may give a Cinderella order and allow the tenant to stay with a payment plan. Then if they still don`t pay, you have to go to court(?) for a Writ(?)

I`ve also heard that the RTDRS is backed up about 3 weeks(?)

In any case, the point is now moot, as the tenant has skipped out - big surprise...

I have some clients that get tough right away - as in call got-junk and have them move the stuff to storage (if they`re an ok-tenant) or actually throw out all their stuff and change the locks if they haven`t heard from them in a couple of weeks.

When the tenant calls to complain just tell them they can have their stuff back if they deposit what they owe you in your account and you will make arrangements to return their things to them.

Definitely illegal and a mean thing to do but this is the only thing that some people respond to and it puts the onus on the tenant to chase YOU through the court process to get their money.

 

[HeatherBrandt]

QUOTE (Nicola @ Jul 10 2009, 07:57 PM) In any case, the point is now moot, as the tenant has skipped out - big surprise...


It`s so irritating! At least you can move on now. I have found with our PM that we get more accomplished when we are not debating about a specific tenant, more that they understand my view for "next time". If you have come to a conclusion how you need it handled, work on them over the next few months.

I wish I had the choice of 14 day notice or RTDRS. Sigh... perhaps next year