Share your expereince how you make sure last months rent is paid

[OurRealtor]

Land Lord "L" of a residential unit based in ON has verbally agreed to rent a residential unit to Mr. & Mrs. Tenants. The rent is due on first day of each month, they paid to "L" first month's rent and was to pay the last month rent within 1 week of moving in. They moved in March 1st, and on March 8th L attended the unit to collect the last month's rent.


They didn't have money at that time. On Apr 1st, "L" attended the unit again to collect last month's rent and April's rent. They informed "L" that they will not pay "L", and also instructed "L" not to attend their unit to demand payments. What can Landlord do? Please Comment

 

[Lucy]

That's a good one. I won't allow that to happen to me because I won't allow occupancy without last months rent, signing of the lease, proof of insurance, verification that utilities have been switched over to tenant.
No keys till all done. Otherwise it's called a red flag tenant.

If the lease calls for last months rent, i assume it's grounds for eviction for breaching the lease.
I would inform them of this nicely, that I expect them to follow the lease and the law just like they expect the same from me.
Give them a short deadline to comply, then evict. They're not worth it and are trouble.

I hope I am correct about the right to evict, otherwise the law is stupid and needs to be changed.

 

[bizaro86]

Read your local RTA. In Ontario, you may not be able to evict them for not paying that, I'm not sure.



The lesson to learn from this is to get the money you require from the tenants in advance, BEFORE you let them move in.

 

[johnsu]

Yes, I'd never let a "BAD TENANT IN AGAIN". 1 bad tenant can cost you a minimum of $6k. So when you feel really desperate to just put someone in and make exceptions DON'T DO IT! I'm pig headed and stubborn and thought I'm SMARTER, but what ended up happening was 3 mistakes that cost me $24k. Now I felt like a DONKEY! So whenever I think about letting an IFFY tenant in, I ask myself, "Are you ready to throw away $8k?" I've let some properties sit vacant as long as 6 months but then ended up with an amazing tenant. I know it's hard especially when cash is tight or when it just seems like there's NO RENTERS out there but believe me, DON'T DO IT! Took $24, 000 for me to get that.

 

[invst4profit]

My tenant must pay me first and last in cash prior to handing over the keys.



For those of you in Ontario that do not know if you do not collect the last months rent prior to them taking possession of the unit you have no right to claim that payment.

Yes in Ontario the rules are stupid. If they refuse to pay last month after they move in you have no right to collect that money nor do you have any grounds to evict.



You are S**t out of luck in tenant friendly Ontario.



(Lucy you need to start studying the RTA. It's your bible and the only way you will be able to operate your business.)http://ontariolandlords.ca/forum/ Go to this forum if you want to survive as a LL in Ontario.

 

[Mecheng]

An additional site you should be familiar with : Help for Landlords

Understand the different forms and how and when to use them.

Always better to know the rules of the game before you start playing.

 

[housingrental]

To comment on Greg`s post - go with bank draft or certified cheque over cash

Safer, better trail, less potential of dispute, etc...

 

[invst4profit]

Good point Adam. As long as the cash is guaranteed prior to handing over the keys.

Don't ever listen to or accept any sob stories. If your new tenant shows up with a truck load of furniture at 5 PM and says he only has enough for first month and will get the rest in the morning then make him and his family sleep in the truck.

On the opposite end of that never accept a cent more than first and last in Ontario. Some tenants have realised it is illegal for a landlord to accept more and will offer 6 months or more in advance to bribe the LL into accepting them. Once in they point out the LL is breaking the law then demand the extra back. They then never pay again often managing to live the next 6 months, or longer, before eviction for the cost of only two months rent.