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Tenant breaking 1 year lease agreement

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Landlord321

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I have an Ontario tenant who signed a 1 year lease agreement starting January 1, 2009.

Because of poor credit, I accepted the first 2 month`s deposit, and last 2 month`s.

All was going well, but now he hasn`t paid for August and September, asking for more time until he got paid from a court case he recently settled. He is a lawyer.

He always maintained he would pay for August and September, but last week, he sent me a letter saying that he wants me to apply the last 2 month`s rent to August and September and he would pay me for October.

He also wants to end the tenancy agreement as of the end of October because he wants to go on sabbatical.

I want to know of anyone`s experience with the Ontario Landlord and Tenant Board.

I would imagine each case is decided on its own merits. Can a tenant just end a tenancy like that? It`s a 1 year lease that doesn`t end until December 31, but now he wants out by October 31.

He didn`t pay August and September but now wants me to apply the last 2 month`s towards that. I did issue an N4, but haven`t issued an L9 notice yet.

Thoughts, suggestions?

John
 
He can apply part of the funds he`s prepaid to August`s rent.
You weren`t supposed to take more than one month of rent for last month`s rent
He should then be paying September`s rent
You should then go to ltb in September after September`s rent late (ie currently)
You should also be trying to re-rent out the place for November 1.
You need to document your attempts to re-rent the property including advertising, people you`ve taken through etc.. do in detail, save receipts, save date/time logs of viewings and contact info.
If you`re unable to re-rent the unit before he`s responsible for rent until the end of December

HOWEVER re You weren`t supposed to take more than one month of rent for last month`s rent:
I don`t know what sort of pain you`ve caused yourself but at the very least expect to be chewed out over taking four months of rent at start of lease - I`d research this further to see if there`s any precedent on what adjudicator can rule for taking extra 2 months initially before applying to the LTB... The process is very fine happy to landlords
 
QUOTE (housingrental @ Sep 21 2009, 09:53 AM) He can apply part of the funds he`s prepaid to August`s rent.
You weren`t supposed to take more than one month of rent for last month`s rent
He should then be paying September`s rent
You should then go to ltb in September after September`s rent late (ie currently)
You should also be trying to re-rent out the place for November 1.
You need to document your attempts to re-rent the property including advertising, people you`ve taken through etc.. do in detail, save receipts, save date/time logs of viewings and contact info.
If you`re unable to re-rent the unit before he`s responsible for rent until the end of December

HOWEVER re You weren`t supposed to take more than one month of rent for last month`s rent:
I don`t know what sort of pain you`ve caused yourself but at the very least expect to be chewed out over taking four months of rent at start of lease - I`d research this further to see if there`s any precedent on what adjudicator can rule for taking extra 2 months initially before applying to the LTB... The process is very fine happy to landlords


Thanks Adam. So even if the tenant signed a 1 year lease agreement, it`s still my responsibility to try and rerent for November and December?

I accepted last 2 month`s rent, as it was his suggestion. He had poor credit and I understood this going in and I accepted it to mitigate my risk.

Assuming I fail to rent for November and December, what are the chances that the judge will still award me for lost rent? I guess this becomes mute if he chooses not to pay me anyway but I just want to know what happens in tenant friendly Ontario.
 
I would try to get him out of the property as soon as possible and cut your loses and move on. He being a lawyer could delay the process of eviction for many months living for free on your property. He most likely planned this from the start.

1) Talk directly with him and follow up in writing. Ask him to vacant by end of September.
2) Start looking for a new tenant.
3) As suggested, document everything in case to go to court.

In the last 14+ years of being a landlord, I had only had one bad tenant. I took him to court, sued and won...Yet, I have never being able to collect from him. I basically lost about a year of business by following the law by the book.

Now, if a tenant wants out of a lease, I just let them go. That is, if they late on rent, I`m on their case right away. I only had two cases in which I negotiated a shorter term... One where he was being constantly late so I ask for the keys... the other one, he lost his job and he was moving back home. In both cases, I lost about a month of so... but it`s cheaper than suing them.
 
Housingrental is spot on.

Don`t worry about taking 2 months rent as you can explain that to the board if necessary.
Apply one month to Aug. make him pay Sept/Oct. and apply the last month to Nov. Take him to the board if he does not pay and then take him to small claims court. The court will uphold your case and allow you to garnish his wages if he ever works again.
Don`t let him walk on the 60 days notice or his contract commitment. The attitude that it is easier to let him go is defeatist and could bite you if the place takes to the end of the year or longer to rent. Go for every cent he owes.

asanchez: When you say you took your tenant to court do you mean court or the LTB? If you took him to court did you have a settlement to garnish there wages?
 
Hello John,

Just look for a new tenant and hopefully you will not lose any rent.

Not a very difficult case. Better than the need to evict!

Regards,
Neil
 
Thanks everyone for your answers thus far. To add complexity to the situation....he owes money to many companies. (gas, electricity, water, etc.) He also wishes to exit the legal practice and take a sabbatical. I know he is currently under administrative suspension with the Law Society...(yes, yes, big lesson learned here...)

Should I issue an L1 or an L9?

L1 is an application to evict a tenant for non-payment of rent and to collect rent the tenant owes. If I file this, I imagine the LTB will just apply the last 2 months towards his August and September non-paying months and let him off the lease, because I am the one appying to have him evicted.

L9 is an application to collect the rent the tenant owes...which means I am not asking him to leave, and hence I would imagine he`s still responsible for October, November and December....

I am worried that with the cold weather coming soon, he`s trying to take advantage and get free room and board knowing that the LTB won`t kick him out during the winter....anyone have experience with this?

If I try and get every cent he owes me, what should I do?? L1 or L9?

I imagine I am only entitled to NSF charges if I actually try and cash the cheque(s) he gave me for August and September, right? He already told me he didn`t have the money in his account so I didn`t bother depositing these cheques because bounced cheques don`t look good on me either and my credit situation is perfectly clean.

This is a big lesson learned from me, and I have no prior experience with the LTB of Ontario.

Next steps anyone?

I am afraid garnishing wages won`t work, especially if he declares bankruptcy....
 
Please see my response in red beside your post..

QUOTE (Landlord321 @ Sep 21 2009, 11:58 AM) Thanks Adam. So even if the tenant signed a 1 year lease agreement, it`s still my responsibility to try and rerent for November and December? Yes. You have an obligation to try and mitigate damages.

I accepted last 2 month`s rent, as it was his suggestion. He had poor credit and I understood this going in and I accepted it to mitigate my risk. I wouldn`t accept this.

Assuming I fail to rent for November and December, what are the chances that the judge will still award me for lost rent? I guess this becomes mute if he chooses not to pay me anyway but I just want to know what happens in tenant friendly Ontario.
You need to prove you tried to re-rent out the unit to win.
 
Additionally - Do a maintenance inspection asap - to cover yourself from false / never heard before maintenance claims.
 
Thanks Greg
Re don`t worry about the extra two months of rent - have you seen any cases where they`ve ruled on this? I`d be concerned they`d try to penalize an owner for this.

QUOTE (invst4profit @ Sep 21 2009, 02:55 PM) Housingrental is spot on.

Don`t worry about taking 2 months rent as you can explain that to the board if necessary.
Apply one month to Aug. make him pay Sept/Oct. and apply the last month to Nov. Take him to the board if he does not pay and then take him to small claims court. The court will uphold your case and allow you to garnish his wages if he ever works again.
Don`t let him walk on the 60 days notice or his contract commitment. The attitude that it is easier to let him go is defeatist and could bite you if the place takes to the end of the year or longer to rent. Go for every cent he owes.

asanchez: When you say you took your tenant to court do you mean court or the LTB? If you took him to court did you have a settlement to garnish there wages?
 
QUOTE (invst4profit @ Sep 21 2009, 12:55 PM) Housingrental is spot on.

Don`t worry about taking 2 months rent as you can explain that to the board if necessary.
Apply one month to Aug. make him pay Sept/Oct. and apply the last month to Nov. Take him to the board if he does not pay and then take him to small claims court. The court will uphold your case and allow you to garnish his wages if he ever works again.
Don`t let him walk on the 60 days notice or his contract commitment. The attitude that it is easier to let him go is defeatist and could bite you if the place takes to the end of the year or longer to rent. Go for every cent he owes.

asanchez: When you say you took your tenant to court do you mean court or the LTB? If you took him to court did you have a settlement to garnish there wages?

Greg, Adam and the rest of REIN Nation, :-)

So...I went to see my lawyer tenant the other night, and verbally agreed to let him end the 1 year tenancy as of October 31 PROVIDED he give me a certified/cheque for the upcoming month`s October rent, and provided he pay for the NSF charges from August and September all the next day. He agreed my offer was fair and said he would ask his live-in g/f to pay for October and for me to come by the next night to pick it up.

The next day comes and goes and he texts me on my Blackberry that his girlfriend refuses to advance the funds but he would check with another friend for a loan. (another one of his stalling tactics)

A few days later passes, and now he emails me the N11 form "Agreement to end a tenancy" with terms attached.

- He would pay for October by certified cheque/money order, and agree to leave the premises by October 31.
- two month`s deposit to be applied to August and September

BUT NO mention of NSF charges/admin charges!!!

In his email, he writes:
I have prepared and signed the agreement on the N11 form for formality`s sake. **** is able and prepared to advance the October rent if I require but NOT until the day it is due. She took off her "relationship" hat and put on her "Landlord/tenant agent" hat and has decided based on the law that she will make sure I can pay the October rent when it`s due but that it doesn`t have to be paid a week early. He goes on further to write, "As I am not conversant with landlord/Tenant law and I do not trust my own thinking at present, I need to rely on her for both her support and her expertise in this area. That is the best I can do at this time and in terms of money, is consistent with what we agreed. <--not true as it doesn`t mention nsf/admin charges

He says, "I am advised that from a technical legal point of view, as unfortunate as it may be, you must apply the monies collected to the months discussed."

Is this true??? Am I obligated to apply the last 2 month`s deposit towards these "middle" months?? Surely, this must not be the case, right? I think technically, he is in breach of his 1 year tenancy agreement because he hasn`t fulfilled 1 year`s worth of tenancy (only 9 months so far) and to Greg`s point, he hasn`t even given me 60 days notice.

This is ridiculous and now as a matter of principle, I will refuse to sign this N11 form. I will instead file an L1 application with the Board and seek to have him evicted.

  • Last 2 month`s (or last month`s rent) should be applied to last month, not the "middle months". I only offered to do this because I was trying to be fair but since he now is trying to take advantage of the situation, I will not back down. As Greg mentions, I will not take this "defeatist" attitude.
  • I am prepared to lose October`s rent, and chalk it up to "good education" for the futureI am also prepared to go to Small Claims Court, as a matter of principle, and to support all the landlords out there who get taken advantage of by these "professional" tenants
I know some of you may be shaking your head, and thinking I should just cut my losses, but now it`s a matter of principle for me. Losing even 3 month`s rent will not hurt me financially. I think he`s abused our landlord/tenant relationship, and I hope the LTB will scold him for trying to take advantage of the situation (being a lawyer himself).

Thoughts/comments?
 
QUOTE (Landlord321 @ Sep 24 2009, 10:41 PM) Greg, Adam and the rest of REIN Nation, :-)

So...I went to see my lawyer tenant the other night, and verbally agreed to let him end the 1 year tenancy as of October 31 PROVIDED he give me a certified/cheque for the upcoming month`s October rent, and provided he pay for the NSF charges from August and September all the next day. He agreed my offer was fair and said he would ask his live-in g/f to pay for October and for me to come by the next night to pick it up.

The next day comes and goes and he texts me on my Blackberry that his girlfriend refuses to advance the funds but he would check with another friend for a loan. (another one of his stalling tactics)

A few days later passes, and now he emails me the N11 form "Agreement to end a tenancy" with terms attached.

- He would pay for October by certified cheque/money order, and agree to leave the premises by October 31.
- two month`s deposit to be applied to August and September

BUT NO mention of NSF charges/admin charges!!!

In his email, he writes:
I have prepared and signed the agreement on the N11 form for formality`s sake. **** is able and prepared to advance the October rent if I require but NOT until the day it is due. She took off her "relationship" hat and put on her "Landlord/tenant agent" hat and has decided based on the law that she will make sure I can pay the October rent when it`s due but that it doesn`t have to be paid a week early. He goes on further to write, "As I am not conversant with landlord/Tenant law and I do not trust my own thinking at present, I need to rely on her for both her support and her expertise in this area. That is the best I can do at this time and in terms of money, is consistent with what we agreed. <--not true as it doesn`t mention nsf/admin charges

He says, "I am advised that from a technical legal point of view, as unfortunate as it may be, you must apply the monies collected to the months discussed."

Is this true??? Am I obligated to apply the last 2 month`s deposit towards these "middle" months?? Surely, this must not be the case, right? I think technically, he is in breach of his 1 year tenancy agreement because he hasn`t fulfilled 1 year`s worth of tenancy (only 9 months so far) and to Greg`s point, he hasn`t even given me 60 days notice.

This is ridiculous and now as a matter of principle, I will refuse to sign this N11 form. I will instead file an L1 application with the Board and seek to have him evicted.

  • Last 2 month`s (or last month`s rent) should be applied to last month, not the "middle months". I only offered to do this because I was trying to be fair but since he now is trying to take advantage of the situation, I will not back down. As Greg mentions, I will not take this "defeatist" attitude.
  • I am prepared to lose October`s rent, and chalk it up to "good education" for the futureI am also prepared to go to Small Claims Court, as a matter of principle, and to support all the landlords out there who get taken advantage of by these "professional" tenants
I know some of you may be shaking your head, and thinking I should just cut my losses, but now it`s a matter of principle for me. Losing even 3 month`s rent will not hurt me financially. I think he`s abused our landlord/tenant relationship, and I hope the LTB will scold him for trying to take advantage of the situation (being a lawyer himself).

Thoughts/comments?
I`ve been where you are before. Fun isn`t it. There are paths you can take. I study the LTB. [email protected]
 
I took him to court but lawyer has not been able to collect as tenant has no job/properties/assets... he is a "junior" who`s Dad pays all the bills for him. It`s been a few years now. I had to pay the lawyer plus revenue lost.

QUOTE (invst4profit @ Sep 21 2009, 02:55 PM) Housingrental is spot on.

asanchez: When you say you took your tenant to court do you mean court or the LTB? If you took him to court did you have a settlement to garnish there wages?
 
Landlord321:


First apply one of the months deposit to August rent. That will in effect correct your original problem and assist with your case before the board.
I would also attempt to cash those rent checks he gave you. You can use it as farther evidence against him. First go to a branch of his bank and ask them to check if the funds are there. You may get lucky and find he has made a deposit. Try a couple of times over a number of weeks.

Your tenant is trying to baffle you with B*ll S**t he is a lawyer that is what they do. He is also lying.
This low life obviously will not pay you or any other of his creditors but you can make his life more difficult and maybe collect some day.
Criminals must be held accountable for there crimes.

Take your tenant to the board for all he owes. At this point you have nothing to lose (or very little).
Ultimately you may get the full amount up to the end of December or at the least to the end of the 60 day notice period.
Take your settlement to small claims (there is a small fee) and register it against your tenant before he declares bankruptcy. You can get a garnishment award against future income which can be renewed every 5 years.
Register the LTB clame as a judgement against him to help block him from getting future credit. Some day he may want to buy furniture at the Brick on a 6 month 0 interest deal. Too bad for him.

Tenants that skip out on contracts are criminals and should be treated as such. Unfortunately we as LLs must act as our own police as society does not protect our rights and the LTB is not interested in even inforcing there own rulings.


In Ontario being a LL is like trying to surviving in the Wild West. Get tough or get out.

Good luck.
 
Good luck.
Re my past one and Greg`s post apply his one month over deposit to earliest month rent overdue.
Let us know how it goes
 
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