Being a landlord comes with its ups and downs. Sure, it’s a relatively passive form of income, but at times it is very involved. Sink sprung a leak? Troughs wavering in the wind? Walkway getting icy? Those generally fall on the landlord’s shoulders to maintain. After all, you are the homeowner. But when it comes to collecting rent, there are steps you can take to moderate the situation and hopefully remedy it before a collapse. There’s a bit of an art to handling late rent payments, but it’s also a burden you don’t need to take on yourself.

In most places, landlords lose out in terms of timely action they can take to remove difficult tenants. Before we get into the nitty-gritty of handling late rent payments, consider for a moment how you choose a new tenant. Face-to-face interactions only tell one side of the story. There’s a lot of depth to who a person is that can’t be ascertained through a twenty-minute interview. Credit checks only go so far too. Enter Naborly—AI to power your understanding of tenant applicants. Here’s a link if you want to read more about that; otherwise, let’s carry on.

Tenant late on rent? Here’s what to do in Toronto.

First, make sure you’re keeping a record of expectations. These should already be recorded in the lease agreement—you do have one of those, right? Great.

If your tenant is late on a rent payment, you should seriously consider whether or not you expect this will be a recurring problem. In order to evict a tenant for late payment of rent in Toronto, you will need to submit several forms and documents to the Landlord and Tenant Board (LTB). It’s a pain in the butt, and if you serve a tenant papers for being a couple of days late on payment for the first time in over a year, they may take it personally.

Is your tenant a good tenant? If so, maybe cut them slack for a first-time offence.

If your tenant is not so great, you’d better get to printing papers ASAP.

 

Data from Social Justice Tribunals Ontario 
2016 – 2017 Annual Report

Get your forms in order.

To start off, you’re going to need the N4: Notice to End your Tenancy Early for Non-payment of Rent (that’s a mouthful). This notice requires your tenant to pay any overdue rent within 14 days, or face eviction. It can be served after one day of non-payment. Here’s the catch: if the tenant pays within 14 days, you cannot take any action to evict. The only way to evict a tenant who routinely pays late is to continue serving the N4 notice until the LTB will side with you and permit eviction.

If you’re eager to evict, you’ll need to print off at least a few N4 notices to prove that rent has been late “persistently”. There’s a reason “persistently” is in quotes—the LTB does not actually define it, so there’s no true guide as to what constitutes “persistent” late rent payments.

Does that mean all those N4s you’ve had to submit to your tenant for late rent payments are now trash? Absolutely not! They are your primary means of proving your tenant is unsuitable to the LTB. Hold onto those and keep receipts of late payments made by your tenant.

Here’s a link to the Rental Tenancies Act for Ontario, it may be of assistance as well.

Is this starting to sound frustrating? We agree… It is.

After you’ve submitted all those N4s, it’s time to step up to the L1.

An L1: Application to Evict a Tenant for Non-payment of Rent and to Collect Rent the Tenant Owes is the catalyst to get a tenant off of your property. Once you’ve done your due diligence with the notice and the tenant still has not paid, you’ll take this L1 to the LTB to proceed with action.

Yes, that means another form. If they’re already paid up in full, you’ll need the L2.

How do you avoid all this paperwork, you might ask? Well, that’s where NaborlyShield can be your saving grace.

How NaborlyShield makes all this trouble go away.

Instead of dealing with late rent payments, having NaborlyShield means you get paid on time no matter what.

If it is really a problem tenant, then we’ll handle all this messy eviction business so you can just line up a new (and better) tenant to move in. That’s all there is to it. It makes this massive frustration into a hassle-free system for landlords in Toronto and just about anywhere else.

Stop worrying about your tenant’s late payments, get a quote for NaborlyShield on your property here!

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