I have found plenty on tenant that are late with rent on this forum but not for a tenant saying they will be late.
My tenant has informed me that their OSAP stundent load will not be processed until Jan. 22nd.
This means they weill be late with their Jan. 1st rent, and want to discuss options.
I would concider this a good tenat over the last year who want to stay for the next.
They also get bonus credit for disclosing this issue in advance.
If I wan tto keep these tenants I see two basic options:
1. Rent can`t be late (its no diff. then paying your car loan) they have to meet their obligations.
I could suggest borrowing the money from friends/family or credit.
2. I float them the money until the loan comes in.
Any suggestions on how to structure / document this would be helpful.
Am I missing any other options or does anyone have some advise on how to proceed.
If they are a good `customer` then give them a break. Situations happen and they are paying your asset for you. Follow the simple LTB guidelines by issuing an N4 in line with their proposed payment date. The N4 gives them 14 days from the time it is issued to pay the rent.
Normally, you would give this to a tenant on the 2nd after the rent is late. However, in this ONE instance, wait a few days and then serve it.
Tell you tenants you have to do this by law and it`s a formality. This will allow you to at least have paperwork in the stream should they fail to pay you on the 22nd.
Just let him know that he will be getting a form indicating that he is late on rent. Acknowledge that you are aware of his position but he needs to understand yours as well. You might elaborate that it`s normal business procedure which you have to follow. Nothing bad would happen unless of course, he keeps a trend.
There is nothing you can do to avoid having to send a notice of late rent. Hopefully, it would be only one for him.
QUOTE (Mecheng @ Nov 26 2009, 01:01 PM) I have found plenty on tenant that are late with rent on this forum but not for a tenant saying they will be late.
My tenant has informed me that their OSAP stundent load will not be processed until Jan. 22nd.
This means they weill be late with their Jan. 1st rent, and want to discuss options.
I would concider this a good tenat over the last year who want to stay for the next.
They also get bonus credit for disclosing this issue in advance.
If I wan tto keep these tenants I see two basic options:
1. Rent can`t be late (its no diff. then paying your car loan) they have to meet their obligations.
I could suggest borrowing the money from friends/family or credit.
2. I float them the money until the loan comes in.
Any suggestions on how to structure / document this would be helpful.
Am I missing any other options or does anyone have some advise on how to proceed.
I would still issue the N4 on the 2nd of the month. Make sure you tell him he will be charged $20 (or whatever) to cover your expenses.
If you chose to wait until the 22nd to see if he pays before you proceed with an eviction fine but be prepared he may have another excuse at that time.
The fact is he should be borrowing from a friend or family member rather than you (not paying on time is borrowing your money) but that is your business decision.
QUOTE (invst4profit @ Nov 26 2009, 02:26 PM) I would still issue the N4 on the 2nd of the month. Make sure you tell him he will be charged $20 (or whatever) to cover your expenses.
If you chose to wait until the 22nd to see if he pays before you proceed with an eviction fine but be prepared he may have another excuse at that time.
The fact is he should be borrowing from a friend or family member rather than you (not paying on time is borrowing your money) but that is your business decision.
How does the timing work if the tenant has provided a last month deposit; can you issue the N4 on the 2nd of the month even though you hold 30 days wrth of rent? I simply suggested that the tenant give me 60-days notice, and that he owes me a month of rent which i will pursue in small claims.
QUOTE (evan wright @ Nov 26 2009, 03:07 PM) How does the timing work if the tenant has provided a last month deposit; can you issue the N4 on the 2nd of the month even though you hold 30 days worth of rent? I simply suggested that the tenant give me 60-days notice, and that he owes me a month of rent which i will pursue in small claims.
Any thoughts?
The last months rent deposit is not relevant as it can only be applied to the last month. Notice, according to the RTA, being 60 days means he still owes you a months rent due on the first of the month and the N4 is still served for non payment.
The only way it would change is if you allowed your tenant to give only 30 days notice applying the last month deposit to the upcoming month. In this case you and your tenant are square.
I agree the best option is they borrow the money from somone else which leaves me out problem.
I think I`m going to suggest they find a way to make that happen because if they do decide to "borrow the money" from me I will have to issue an N4.
Thanks for that suggestion it absolutly makes sense. Hopefully they will chose to find the money elsewhere and keep the N4 off the table.
My understanding is for the N4 you must give at least 14 days notice, plus the day it is issued.
So if you file on the 2nd the earliest termination date is the 16th, but nothing says you can`t make it longer.
In this case I could issue it on the 2nd and give the 22nd as the termination date, correct?
It is not necessary to change the termination date. Leave it at the 16th as this will apply more pressure on the tenant to find the money somewhere else before the 22nd.
What you will do, without telling the tenant in advance, is simply wait until after the 22nd to file the N4 with the LTB.
