Tenant Wants to End Lease Early ( Ontario )

augustynr1 · Mar 4, 2013

Hi,

What are my options?

The tenant stopped paying and is using the LMR.

I can server N4 and evict based on that.

Is there a way of forcing the tenant to stay or pay the reminder of the lease?

invst4profit · Mar 4, 2013

The LMR can legally only be used for the actual last month of the tenants lease.. Tenants are required to provide 60 days notice meaning your tenant would legally have to give proper written notice prior to March 1st to vacate at the end of April. LMR could then be applied to April if YOU chose to do so. Personally I never agree to apply LMR when tenants decide to break a lease as I never know how long it will take to re rent the unit. With proper notice there is little you can do to prevent it but the tenant is responsible for rent payment to the end of the lease if you are unable to re rent.

If you want to collect all the rent owing you do not agree to apply the LMR deposit at this time.

DO NOT issue a N4. The N4 will allow the tenant to vacate in 14 days and at a board hearing you will not be awarded the full rent they owe as the N4 is determining your tenants lease. What you want is to collect rent owing not evict.

Immediately go to your local Services Ontario office and file a L9. This is for collecting rent owed.

Remember you are not intending to evict you are telling your tenant they have a valid lease that they must honour.

Send you tenant written notice that they have not provided proper notice (60 days) and inform them they are responsible for rent payments to the end of their lease period. Make it very clear to them the the LMR deposit will only be applied to the last month of their actual lease if they chose to terminate at that time.

Sometimes this is all that is necessary to get bad tenants in line.

Once you are at the board hearing for the L9 all the rest of the details can be hammered out regarding termination of the lease and monies owed. Be prepared with accurate numbers, dates and details. The L9 is the easiest one to win (do not forget to ask the adjudicator for the tenants to pay the filing fee) but the adjudicator will still be looking for ways to let the tenant off the hook so be VERY well prepared with all the facts.

augustynr1 · Mar 6, 2013

Great input! thank you.

housingrental · Mar 6, 2013

I would disregard Greg's post.

Payment rights are not absolute. Landlords have an obligation to mitigate damages.

In addition you are able to seek rent payments beyond one month of rent.

To add:

You have to try and re-rent the unit.

Tell the tenant that they have a valid contract in place until X, you will try and re-rent the unit asap, they are responsible for rent until it does.

Maintain logs of ads, viewings. You will need them if the renter does not pay in full and you go to court after.

During process notify tenant in writing of amounts owing.

Have a paralegal write up a letter if they are non responsive for an increased chance of collection without litigation.

augustynr1 · Mar 6, 2013

Thanks, So what should I do now?

The tenant did not give me the proper notice ( in writing ) though I got a text few days ago.

I did not get the key but she moved out ....

I understand that I have to try to re rent it though since she is out the L9 does not apply.

So the next step would be a small claims court?

housingrental · Mar 7, 2013

Email / send a notice summarizing your position and funds owing so you have it on record

Maintain a detailed log

If you have the renter out - you have an opportunity to present a pristine unit - get it cleaned and well prepared and rented

invst4profit · Mar 8, 2013

The question is what are you after from the tenant.

You have their last months rent but they owe one more month for not providing 60 days notice.

For the sake of one month is it possible for you to adequately screen and have a new tenant for April 1. Possibly risky in Ontario unless you have a high rent unit and plenty of applicants to chose from.

In reality if your tenant has not returned the key they do still legally have possession and if LMR is applied it is legally their unit until the end of March regardless of whether they live there or not. I personally would file the L9 and take a run at collecting one more months rent and the filing fee from your criminal tenant. However I personally enjoy the challenge of making tenants pay what they owe by going after them through the board. I do not believe criminals should be allowed to go scot free.

The L9 would be asking for their March rent payment and LMR would be applied to April assuming you can find a tenant for May.

housingrental · Mar 8, 2013

Hi Greg

Re your post above

I understand your perspective

However

The tenant might end up owing more than one month rent

In addition the tenant might pay with a well worded demand letter without the need for time (and additional outlay on filling fee which you are not guaranteed to get back if you do not win order or collect payment on order)

It would be best to wait for actual damages to crystalize before taking legal action

Until that time the landlord can document, make contact with tenant, and mitigate damages

invst4profit · Mar 8, 2013

I am in full agreement Adam but realistically the communication with the tenant to resolve the matter should have taken place on March 2nd.

Time is being wasted Tic Toc.

The board process can take months and as with most landlords the decision to move forward always takes too long. In this case a entire week has already been lost. The process of resolving the matter with the tenant should have started on the 2nd and the L9 filed no later than the 3rd. This is now a ex tenant (and landlord) that need to learn a lesson.

It is rare in situations such as this that the tenant takes responsibility and pays up voluntarily. Good tenants communicate openly with their landlords before taking action. Actions such as in this case are usually intentional in that the tenant knows they are illegal but hope the landlord will not take action.

This tenant needs to be taught a lesson so that next time they will think twice about s****ing a landlord. It is a responsible landlords obligation to train tenants for the benefit of future landlords.