Need help...........I have a fairly new tenant in Ontario that bounced a cheque on me last month and came clean with cash the next day. This month he called me to ask if I could hold off on the post dated cheque for 7 days till he cleared up some other personal issues. What should I do? I know if I cash the cheque it will bounce, however I am afraid that if I hold on I will be setting precedence (maybe even legal??) .........Any thoughts from the Pro`s
Hold on a post dated Cheque
- Thread starter gsicilia
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First you must issue a N4 every time his rent is late past midnight on the day it is due. Because July 1st is a Holiday his rent is not due till midnight on the 2nd.
Tell him his rent is due on time and you will be giving him a eviction notice on the 3rd if you do not have the rent. Give him back his check when you hand him the N4 eviction notice.
(He will have 14 days to pay.)
Although he will pay tell him if he continues to pay late, which he will, you will give him a N4 every time and evict him when his lease is up. It is very difficult to evict but continued lates is reason enough when he is on month to month.
Hopefully he will not stop paying entirely but if he does you will be able to evict. It may take 3 months or more.
The best advice I can give is never hesitate to send notices as it will take a long time to evict and you will need documentation to support your case if he does not mend his ways.
Your tenant is attempting to control you and you must be firm and take control yourself. Eviction notices are the best way to do that. Do not simply threaten him. Go to the unit and hand that N4 to him in person.
Good luck it sounds like you may need it.
Tell him his rent is due on time and you will be giving him a eviction notice on the 3rd if you do not have the rent. Give him back his check when you hand him the N4 eviction notice.
(He will have 14 days to pay.)
Although he will pay tell him if he continues to pay late, which he will, you will give him a N4 every time and evict him when his lease is up. It is very difficult to evict but continued lates is reason enough when he is on month to month.
Hopefully he will not stop paying entirely but if he does you will be able to evict. It may take 3 months or more.
The best advice I can give is never hesitate to send notices as it will take a long time to evict and you will need documentation to support your case if he does not mend his ways.
Your tenant is attempting to control you and you must be firm and take control yourself. Eviction notices are the best way to do that. Do not simply threaten him. Go to the unit and hand that N4 to him in person.
Good luck it sounds like you may need it.
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QUOTE (gsicilia @ Jul 1 2009, 08:59 PM)
Need help...........I have a fairly new tenant in Ontario that bounced a cheque on me last month and came clean with cash the next day. This month he called me to ask if I could hold off on the post dated cheque for 7 days till he cleared up some other personal issues. What should I do? I know if I cash the cheque it will bounce, however I am afraid that if I hold on I will be setting precedence (maybe even legal??) .........Any thoughts from the Pro's
Issue the right eviction/late fee papers/notices .. but still talk to him to see if it is "systemic" or just a temporary bind !
Keep in mind the bank doesn't care .. and may take the property away if you don't pay your mortgage !
Treat it like a business ! be firm and fair ! Rent is due on the first of the month.
Need help...........I have a fairly new tenant in Ontario that bounced a cheque on me last month and came clean with cash the next day. This month he called me to ask if I could hold off on the post dated cheque for 7 days till he cleared up some other personal issues. What should I do? I know if I cash the cheque it will bounce, however I am afraid that if I hold on I will be setting precedence (maybe even legal??) .........Any thoughts from the Pro's
Issue the right eviction/late fee papers/notices .. but still talk to him to see if it is "systemic" or just a temporary bind !
Keep in mind the bank doesn't care .. and may take the property away if you don't pay your mortgage !
Treat it like a business ! be firm and fair ! Rent is due on the first of the month.
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MTNG is correct.
Your tenant should from this point forward be paying his rent with cash. It is his responsibility to make all arrangements to deliver that payment to you on or before the date it is due . You do not track him down. You do not make arrangements to pick it up from him.
Your tenant should from this point forward be paying his rent with cash. It is his responsibility to make all arrangements to deliver that payment to you on or before the date it is due . You do not track him down. You do not make arrangements to pick it up from him.
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I`ve had my share of issues with one tenant in particular that went this way as well. We followed all the rules of the N4 but also tried for many months to work it out with him - after 3 months of him not paying, he was taken to LTB and we were issued a standard eviction form because he did not show.
The good part is, that he was an RTO client, I had a huge deposit from him to carry the house and he paid most of the back rent on the day of the LTB in March.
Fast forward to June, when we tried repeatedly to have him pay `just a bit` at at time to catch up on the remaining back rent (he was paying regular rent albiet a few days late) but he did not follow through on promises.
We decided to initiate the eviction order with the sheriff - he then paid all that was owed and this was only last week.
The point is, that as any experienced member here will tell you, stick to your legal options, issue proper notices and play within your rights. Eventually, it will work to your favour.
In my situation, I let this go on way to long than most only because I am in a position to carry the house with all the option money, staying power fund etc. He is paying above market rent and in the end I truly do want to sell him the house, it`s just a babysitting job.
All the best...
The good part is, that he was an RTO client, I had a huge deposit from him to carry the house and he paid most of the back rent on the day of the LTB in March.
Fast forward to June, when we tried repeatedly to have him pay `just a bit` at at time to catch up on the remaining back rent (he was paying regular rent albiet a few days late) but he did not follow through on promises.
We decided to initiate the eviction order with the sheriff - he then paid all that was owed and this was only last week.
The point is, that as any experienced member here will tell you, stick to your legal options, issue proper notices and play within your rights. Eventually, it will work to your favour.
In my situation, I let this go on way to long than most only because I am in a position to carry the house with all the option money, staying power fund etc. He is paying above market rent and in the end I truly do want to sell him the house, it`s just a babysitting job.
All the best...
Thx all,,,,,,,,,,,,,,looks like N4 are in order. Can I charge late fees if these are not part of the lease. If yes what is the right amount. OR should I just cash the cheque lose the three days before I can hand him an N4 and then collect on the NSF. This will also impact his credit rating which I think has to eventually hit home
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If it is not in the lease you can not charge a late fee.
If you cash the check the bank collects the NSF fee not you so there is no advantage to you.
Don`t waste time playing games. He has told you he does not have the rent, issue the N4 now.
If you cash the check the bank collects the NSF fee not you so there is no advantage to you.
Don`t waste time playing games. He has told you he does not have the rent, issue the N4 now.
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And I can`t stress enough. Please ensure to complete the Certificate of Service immediately after you serve the N4.
http://www.ltb.gov.on.ca/graphics/stel02_111557.pdf
Even if you choose to accept the tenants excuse for delay in processing the cheque, serve the N4 and what I did (when it was the first time) was include a letter stating this is nothing personal, business. The mortgage is due regardless and the rental amount and payment date is clearly stated to fall on the 1st of the month. It is your responsibility to budget and have payment ready. The key thing is that you establish a paper trail and if it continues, can escalate to the N8 for being persistently late.
In my leases, for subsequent cheques in default, I have them state that I require Certified Cheque or Money Order. You have better things to do than chase tenants around for payment.
http://www.ltb.gov.on.ca/graphics/stel02_111557.pdf
Even if you choose to accept the tenants excuse for delay in processing the cheque, serve the N4 and what I did (when it was the first time) was include a letter stating this is nothing personal, business. The mortgage is due regardless and the rental amount and payment date is clearly stated to fall on the 1st of the month. It is your responsibility to budget and have payment ready. The key thing is that you establish a paper trail and if it continues, can escalate to the N8 for being persistently late.
In my leases, for subsequent cheques in default, I have them state that I require Certified Cheque or Money Order. You have better things to do than chase tenants around for payment.
Thx all again.
Shannon, I am confused at the value of filling the "Certificate of Service"...........What is this for. It does not seem that this gets served to anyone and is strictly for record keeping. Does this have to be sent to anyone (third party?) to validate that you sent someone an N4?
Thx
Shannon, I am confused at the value of filling the "Certificate of Service"...........What is this for. It does not seem that this gets served to anyone and is strictly for record keeping. Does this have to be sent to anyone (third party?) to validate that you sent someone an N4?
Thx
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QUOTE (gsicilia @ Jul 1 2009, 07:59 PM)
Need help...........I have a fairly new tenant in Ontario that bounced a cheque on me last month and came clean with cash the next day. This month he called me to ask if I could hold off on the post dated cheque for 7 days till he cleared up some other personal issues. What should I do? I know if I cash the cheque it will bounce, however I am afraid that if I hold on I will be setting precedence (maybe even legal??) .........Any thoughts from the Pro's
Sicilia,
I have a different opinion:
use your gut feeling. I had a similar case (with long term tenants though!) where they called in advance like your tenant. I am glad i did not send N4 etc. etc. in those cases as it did not repeat. Note: the fact that he/she called means a lot! if he is a bad tenant, he is not a typical one as usually they will not proactively call to tell you not to deposit their cheque! personally, I'd definitely give a 2nd chance and wait the 7 days he/she asked.
I am willing to pay you the interest you're losing during these 7 days.
Your tenant is your source of income. ruining the good relationship I hope you have with him/her is worth it only when you believe it's time to ruin it.
Need help...........I have a fairly new tenant in Ontario that bounced a cheque on me last month and came clean with cash the next day. This month he called me to ask if I could hold off on the post dated cheque for 7 days till he cleared up some other personal issues. What should I do? I know if I cash the cheque it will bounce, however I am afraid that if I hold on I will be setting precedence (maybe even legal??) .........Any thoughts from the Pro's
Sicilia,
I have a different opinion:
use your gut feeling. I had a similar case (with long term tenants though!) where they called in advance like your tenant. I am glad i did not send N4 etc. etc. in those cases as it did not repeat. Note: the fact that he/she called means a lot! if he is a bad tenant, he is not a typical one as usually they will not proactively call to tell you not to deposit their cheque! personally, I'd definitely give a 2nd chance and wait the 7 days he/she asked.
I am willing to pay you the interest you're losing during these 7 days.
Your tenant is your source of income. ruining the good relationship I hope you have with him/her is worth it only when you believe it's time to ruin it.
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But:
This is two months in a row. That is a bad sign.
Send the N4 and explain it is simply a official notification form required by the LTB.
The unfortunate thing is that you do not have a late fee.
Late fees are a added bonus for LLs when you have a relatively good tenant that for various reasons is semi poor at money management.
This is two months in a row. That is a bad sign.
Send the N4 and explain it is simply a official notification form required by the LTB.
The unfortunate thing is that you do not have a late fee.
Late fees are a added bonus for LLs when you have a relatively good tenant that for various reasons is semi poor at money management.