Have the hearing next week. It's more a formality than anything as the tenants have made multiple smaller payments towards the outstanding rent since the hearing was scheduled, and are close to being caught up, but I want it on record that they are behind and have a history of late payment (7 months in a row of bounced cheques).
I'm not actually looking for an eviction, but as I mentioned want it on record in case the promised catch-up payments fail to materialize.
Any helpful tips other than ensuring I have all the supporting documents, bounced cheques, bank statements, etc.
Wow 7 NSFs in a row is 5 too many. Your first board hearing should have followed the second one at the very latest with a L9 application. That would most likely have put an end to your problem.
Did you file a L1/N4 or a L1/L9 combination. Hopefully the combination however I would assume only a L1 as most landlords do not understand the appropriate system.
Dress is casual, expect to be there all day and make sure you have exact dollar amounts as you are required to file a updated L1 with the adjudicator on the day of the hearing.
In light of the fact that your tenant is paying I would strongly advise you convince him/her legal aid lawyer to agree to mediation. If it is successful you will be out by mid morning and will have the settlement on record with the board.
What you should be going for as a settlement is:
full rent owing
NSF fees on each bounced check (must be on L1 app.)
$20 admin fee on each bounced check (must be on L1 app.)
$170 reimbursement of application fee (must be on L1 app.)
Tenant to be placed on 12 month probation to pay on time (repayment and monthly rent).
Agreement on repayment schedule
The right to immediately apply for an eviction in event tenant misses a payment, is late on payment of rent or bounces another check.
If mediation goes well you will then present the settlement to the adjudicator and he/she will make sure the tenant understands the part about you being able to immediately apply directly to the board for eviction if they fail to fulfill all the agreed to items.
If you do go to a hearing documentation and all the facts are important. You must know the numbers and details as any indication of uncertainty on your part could cost you the hearing or worse - money. If you do end up at a hearing (no mediation) you will not get your $170 application fee from the tenant if you filed a L1. Your application will be denied even if there is full agreement on a repayment schedule as the adjudicator will not evict.
For future reference a landlord should issue a N4 immediately upon having a tenant not pay by the first of the month or when they receive a NFS check. Following the 14 day notice a L1 and L9 should be filed with the board. The L1 will most likely be denied but the L9 will be upheld and the tenant will be required to pay the landlords filing fee. Both the L1 and L9 are filed under the same $170 fee.
In the event a tenant has a second late payment or NSF the landlord should then immediately file only a L9 each time. Only if the tenant then consistently pays late or has NSFs should a landlord again issue a N4 and file for eviction.
Personally I would be wanting to evict your tenant but if this puts an end to the NSFs all is good. However this will not be the end in my opinion and you will end up evicting this tenant or they will pull a midnight run on you. With an agreement in place they will at some point be begging for a reprieve on paying their rent on the 1st and if you agree you will never put an end to it. Your tenant has zero money management skills and is not going to change
as you have been far too lenient with him and it will come back to bite you at some point in time.
Lots to comment on, but first off an N4 was filed for every single late payment/bounced cheque. Tenants paid rent (and NSF/Admin fee) before the 14 day limit in every case except this last one where the L1 was filed.
They are actually only behind one month's rent. And they are in agreement with what is owed (including the $170 filing fee).
This is a Rent to Own, so we are trying to work with them as best we can. They have a lot to lose here so I don't imagine a midnight run is in the cards. There are other circumstances leading to their late payments that they say have now been resolved, but I want to still proceed with the hearing for records purposes to ensure that if they are late going forward there will be immediate consequences.
I agree with the lack of money management, but definitely haven't been lenient and don't believe I had any other options other than the L9. I though you would file either L1 OR the L9 but not both since the L1 also identifies the amount outstanding. I'll look into it further, thanks.
I have copies of all N4's, L1 and receipts for payment so will make sure to bring them all.
In dealing with tenant payment issues there is a process that insures landlords get paid and tenants learn the proper process and follow it when paying rent.
Tenants should only ever recieve 1 N4 during a tenancy. It should be issued the first time they are late or have a NSF. After that it is always a L9 until you attempt to evict for repeated late payments.
The first time a tenant is late paying the N4 is issued as a sort of grace period to pay the rent but at the same time teaches the tenant that as a landlord you are following business practices.
In the event they do not pay by 14 days and a L1 is applied for this will cost the landlord $170. This application fee is never awarded to the landlord by the board unless the eviction is upheld, which it never is on a first application. This is a wasted cost to a landlord which is why the LTB created the L9 application for rent owing and should always be applied at the time of the L1 insuring you get your $170 returned by the tenant. L9s are always upheld by the board.
All subsequent times a tenant pays late a landlord need only file a L9 on the second of the month. This allows the tenant no grace period to pay the rent and the tenant immediately owes the landlord an additional $170 even if they do pay rent owing prior to a hearing. If they pay prior to the hearing (including the $170) you can cancel the application and hearing.
Filing a L9 does two things, first it penalizes the tenant for paying late as the board always awards the $170 fee to the landlord and second it places a application on file before the tenant can do a midnight run. Once a tenant stops paying rent and vacates the apartment a landlord can not apply to the board. (personally I prefer pursuing tenants in small claims court but most landlords are intimidated by the courts)
If the L9 does not teach your tenant to pay on time then eventually you apply to evict for repeated late payments.
In regards to your RTO tenant I would expect you will get the house back, keep the deposit and RTO again. Your tenant will likely never qualify for a mortgage with their payment record.
For anyone interested in the outcome - tenants wanted mediation as they knew they really had no excuses. They agreed to a series of make up payments over the next month to catch up in time for April. Payments included the NSF fee, filing fee, and back rent. They did include the "section 78" which enables me to request an immediate eviction for breach of any of the agreed upon terms.
I did not have to present to an adjudicator. The mediator handled everything and drafted up the final agreement which we all signed. The whole thing was over in an hour from check-in to the time I left.
One thing I made sure of was to put the final payment as being due on the 2nd of April, and ensuring that payment included April's rent. That way if they miss paying April on time, I don't have to start the whole process again.
Overall while it was a pain, I was only there for an hour, and it was a great learning experience.
I need your advise. I have a L9 hearing this month end; the tenant has not been paying rents for a year. My L4 application was not in my favour after the tenant filed set-aside motion against the L4 eviction order. Is it better to cancel L9 now and submit N4 and then L1? I need advise.
