Rights and responsibilities of both landlord and tenants

BY JAY BRIJPAUL

COVID-19’s assault has caused many to lose their jobs and, in the process, many tenants cannot pay their rent. Landlords rely on this rent to pay their mortgages and it becomes a vicious cycle. The Landlord and Tenant Board and the courts are still closed. Tensions are brewing between conflicting parties—some landlords are taking advantages of tenants and some tenants are doing the same. Sir Richard Branson, the British Business Magnate, remarked that “Tough times are inevitable in life and in business. But how you compose yourself during those times define your spirit and will define your future.”

When tenants fail to pay their rent, landlords cannot take matters into their own hands. The first step is to work out an arrangement with the tenant. Angelo could not pay his rent on the first of the month. His landlord understood that Angelo had recently lost his job and worked out an arrangement where Angelo would pay a partial rent and have the remainder deferred. Angelo understood that he would eventually have to catch up on the deferred rent. Postponing rent is like hanging fire for the future because, soon, Angelo will have to pay his normal rent plus the backlog.

It is essential to follow the rules as outlined by Tribunals Ontario. Landlords must wait until the day after rent is due and then serve their tenant with the required N4 form—Notice to end a tenancy early for non-payment of rent. If the tenant pays rent monthly, then, the landlord must give the tenant at least 14 days’ notice. If a tenant pays weekly, then 7 days is required. When serving the notice, do not count the day the notice is served. Landlord Omar gave his tenant the notice to end the tenancy. He calculated the 14 days from the date he served the tenant. The hearing was scheduled four months later and at the hearing, his application was considered invalid. Omar had to start over.

The notice must have the name of each tenant, correctly spelt. A wrong spelling in the name can make the application invalid. A copy of the N4 must be given to each tenant. Remember to fill the complete address of the rental unit, including the postal code. For example, if it is the tenant lives on the main floor of a home, the form must state “Main Floor”. The next step is to determine the amount the tenant owes. Rent is the basic rent and does not include the cost of utilities, damages and other related expenses such as NSF cheque charges. For the notice to be valid, it must be signed and dated by the landlord.

Serving the notice properly is essential. Posting the notice on the door of the rental property is not an acceptable method. The form can be given directly to the tenant or any adult in the rental unit. Some other ways to serve it is to leave it in the mailbox, place it under the door, send it through courier, fax or by mail. For mail or courier, remember to add a few extra days to cater for delivery.  Keep a copy of the N4 you serve.

Tenants who receive this notice have until the termination date in the application to pay. Once paid, the landlord cannot apply to the board for eviction. Consistent late payments are grounds for eviction and tenants who deliberately withhold rents can be evicted. If the rent owed differs from the amount the landlord claims, then, it is best to discuss the discrepancy with the landlord. The N4 is only a notice and a tenant need not vacate the rental property. The landlord must then apply to the board for an order to evict. A tenant can choose to leave the property by the termination date given and the landlord will not be able to apply to the board. If rent is still owing, a landlord can apply to small claims court.

The landlord can apply to the board one day after the termination date. The board will schedule a hearing and send the tenant a copy of the landlord’s application and the notice of hearing. After serving the N4, landlords or their representative should immediately complete the “certificate of service”. This would be needed by the landlord in order to apply to the board for a hearing. Landlords must now complete the L1 form, an application to evict a tenant for failure to pay rent and to collect the outstanding balance.