Landlord Self Help Centre
Landlord Self Help Centre
Collecting Money from a Former Tenant
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Collecting Money from a Former Tenant

Transcript

Introduction

Welcome to Landlord’s Self-Help Centre’s module about collecting monies owed by a former tenant. The information offered in this presentation is intended as general information, it is not legal advice. If you need more information, please contact a legal service provider. For detailed information about other forms discussed in this presentation, please refer to the other landlord learning modules.

Residential Tenancies Act, 2006

In Ontario, the Residential Tenancies Act is the provincial law that governs most residential rental agreements. It defines the rights and responsibilities of both landlords and tenants and outlines the rules and procedures for filing post tenancy applications. It also establishes rules and framework for the adjudicators and LTB procedures.

Bill 184

Bill 184, Protecting Tenants and Strengthening Community Housing Act, 2020 was proclaimed into force on July 21, 2020 and received Royal Assent the same day. However, numerous outstanding amendments were proclaimed into force on September 1, 2021 including the now clear jurisdiction of the Landlord and Tenant Board over post tenancy issues. This only applies to post tenancy issues where tenants moved out of the rental unit on or after September 1, 2021.

Do you know where your former tenant works/lives?

According to the changes made to the Residential Tenancies Act as a result of Bill 184, landlords have one year to file a post tenancy application from the date their tenant vacated. Landlords will have to know where their tenants currently live in order to file with the Board. They may have to hire the services of a private investigator or a skip trace agency in order to find the former tenant’s current address.

Unlike other applications to the Board, landlords will have to give a copy of the L10 application and a notice of hearing package to the former tenant at least 30 days prior to the hearing date.

L10-Application to Collect Money a Former Tenant Owes

The L10 application can be filed with the Landlord and Tenant Board for post tenancy issues such as arrears of rent, compensation, unpaid utility bills, damages and other costs incurred as a result of the tenant’s behaviour.

Application for Arrears of Rent

As per section 87 (1) of the Residential Tenancies Act, landlords will be allowed to file an application for arrears of rent against a current tenant or former tenant who is no longer residing at the rental unit. The landlord has one year to file this application from the date the former tenant vacated the rental unit.

Application for Compensation for Use and Occupation of the Rental Unit

As per section 87 (3), landlords will be allowed to file an application for new rent that became due in cases where a tenant failed to move out of the rental unit by the termination date. The landlord has one year to file this application from the date the tenant vacated the rental unit.

Rent Arrears/Compensation

This image shows the section of the L10 under reason 1 that pertains to the rent amount owed by the tenant and compensation for each day the tenant remained in the unit after the date the tenancy ended.

Charges Related to NSF Cheques

This is reason 2 in the L10 that deals with charges incurred due to non-sufficient funds cheques the tenant may have given to the landlord. The table allows the landlord to fill out the amount charged by the bank plus an administrative fee of up to $20.

Compensation for Failure to Pay Utility Costs

According to section 88.2 (1), landlords will be allowed to file an application for compensation for failure to pay utility costs against a current or former tenant. Up until now, the Landlord and Tenant Board could only terminate the tenancy based on this but did not have the jurisdiction to issue an order determining the amount owed in utility costs by the tenant.

The landlord can file the L2 application while the tenant is residing at the rental unit or the L10 application for a former tenant.

Utility Bills

This image shows you the section of the L10 under reason 3 with respect to unpaid utility bills by the former tenant. 

Utility Bills Continued

The L10 form provides additional space so you can include further information about the unpaid utilities bills. Landlords should attach documentation such as invoices and receipts.

Compensation for Damages

According to section 89, landlords will be allowed to file an application for compensation for damage against a current or former tenant.

The landlord can file the L2 application while the tenant is residing at the rental unit or the L10 application for a former tenant.

Damages

This image shows you the section of the L10 under reason 4 with respect to damages caused by the former tenant. Landlords should attach documentation such as receipts, estimates and pictures.

Application for Interference with Reasonable Enjoyment, Lawful Right, Privilege or Interest

As per section 88.1 (1), landlords will be allowed to file an application for compensation for interference with their reasonable enjoyment, lawful right, privilege or interest against a current or former tenant.

The L2 application can be filed for current tenants, while the L10 application will be filed for a former tenant.

Compensation for Interference with Reasonable Enjoyment

This is the continuation of section 88.1 which allows landlords to recover costs associated with out of pocket expenses incurred as a result of the interference by the current or former tenant. This section also applies to interference by the tenant or out of the pocket expenses incurred before September 1, 2021, which is the proclamation date of this section.

Substantial Interference

This image shows you the section of the L10 under reason 5 with respect to interference with their reasonable enjoyment, lawful right, privilege or interest against a former tenant whose behaviour led to the landlord incurring additional expenses.

Some examples of this behaviour include pulling a false fire alarm which may have led to the landlord being fined by the fire department or constant attempts to enter the rental unit in order to treat it by pest control companies which may have led to the landlord incurring additional costs.

Landlords should attach documentation such as receipts and invoices.

Certificate of Service, Post Tenancy

According to section 189.0.1, landlords who apply to the Landlord and Tenant Board based on arrears of rent, compensation for use and occupation of the rental unit, compensation for interference with reasonable enjoyment, compensation for failure to pay utility costs, and damages against a current or former tenant, will have to provide a copy of the actual application and notice of hearing to the former tenant. The landlord will then have to fill out a Certificate of Service, Post Tenancy form to prove that copies of these documents were given to the tenant in question.

Please remember that a copy of the L10 application and a notice of hearing package have to be given to the former tenant at least 30 days prior to the hearing date.

Approved Methods of Service

Section 191 indicates the approved methods of service when delivering notices or documents to a tenant or former tenant who is no longer residing at the rental unit.

Landlords can serve tenants in person by giving the document to the tenant directly or to an apparently adult person where the tenant or former tenant lives, by regular mail to the address where the tenant or former tenant lives or by any other means allowed in the Landlord and Tenant Board Rules.

Gather Information & Educate Yourself

It’s very important to educate yourself and gather information about various topics related to renting. Use resources found on the landlord and tenant board, and landlord’s self-help center’s’ websites to help guide you.

The landlord and tenant board website has links to instructions for many of their notices and applications, as well as interpretation guidelines which provide more information about the decision making process.

LSHC Membership Benefits

Landlord’s Self-Help Centre has a membership program. When you become a member, you are supporting the work of the organization! If you are already a member, Thank You!

For those who are not, there are many benefits to becoming a member, such as access to downloadable documents including rental applications and Standard Lease Form additional clauses. For more information, or to sign up, please visit www.landlordselfhelp.com

Conclusion

Thank you for watching this module about collecting monies owed by a former tenant. The information offered in this presentation is intended as general information, it is not legal advice. If you have a specific issue or situation, please contact a legal service provider.