Welcome to the KRPOA blog!
Being a landlord is tough and requires a decent amount of knowledge (market, investment, legal etc.). For new landlords, it can be difficult to know where to look and who to ask. This blog will be used as an educational tool and medium for Kingston landlords to converse and share experience, while also learning more about “the basics”. Here, we will delve into common issues for landlords and how to avoid/deal with them.
With that said, let’s delve in. This month’s post will discuss and highlight some of the most important Landlord Notices and Forms. Building your confidence and assisting in your operations are the priorities. It is crucial to understand the purpose of each form, also ensuring that you fill in the correct one for any given situation.
The following information will be discussed as follows:
1. Notice of Termination
a. Fault Grounds (Eviction because the tenant did something wrong)
b. Non-Fault Grounds (Tenant hasn’t done anything wrong but the landlord requires the unit, such as for conversion, landlords own use or purchasers own use.
2. Notice of Rent Increase (Also known as Operational Forms)
3. Application Forms
4. Scenarios
5. Serving Notices
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Notices of Termination
Fault Grounds:
Typically, in this scenario, the landlord would first send a friendly reminder by email or contact the tenant directly to discuss the issue. If nothing changes, the landlord can then serve the tenant with an N4 notice. The tenant will then have at lease 14 days to pay the amount owing before the landlord can apply to the Board to evict the tenant.
Please note that the tenant could simply move out after the termination date (14 days) and the landlord cannot apply to the Board to retrieve the amount owing. So, it is important to consider the consequences of serving an N4 if you run into this issue.
The first is a 7-day voidable period with 20-day termination period. If the tenant voids the first and does the same act within 6 months, you can issue a second N5 that is not voidable with a termination of 14 days. It is possible to evict on a first N5 if the tenant doesn't void the actions within 7 days.
Non-Fault Grounds
An agreement to end the tenancy can be used to break a lease, end the tenancy when there is a breakdown in the landlord and tenant relationship, and in situations where it’s the best option for all parties involved. N11s are beneficial as they are the easiest and fastest way to end a tenancy, and there are no costs or time spent at the Landlord and Tenant Board if the tenant signs the N11 and moves out by the agreed date.
If an agreement to end the tenancy is successful and the tenant(s) moves out by the agreed date, the tenant(s) only owes rent up until the termination date. The landlord cannot go after the tenant(s) for loss of rent after that date.
In cases where the tenant changes their mind after signing the agreement and refuses to move out, or the landlord is uncertain of the tenant’s intention to honour the agreement, the landlord can apply to the Landlord and Tenant Board to get an eviction order. This is why written agreements are so important. The application can be filed as soon as the N11 is signed, BUT it must be filed with the Board no later than 30 days after the termination date indicated in the agreement or else it expires.
You cannot give this notice for any of the above reasons if:
the complex has been converted to a condominium and the tenant lived in the rental unit on the date the complex was registered as a condominium, the complex is proposed to be converted to a condominium and the tenant lived in the rental unit on the day the agreement of purchase and sale was entered into.
The complex was severed and the tenant lived in the rental unit at the time consent to the severance was given under the Planning Act.
The complex is an equity co-op (even if the landlord or the purchaser has a tenancy or occupancy agreement entitling them to occupy the rental unit), unless:
the building contains four or fewer residential units, or
the landlord or a member of their immediate family used to live on the premises.
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Notice of Rent Increase:
N1 (Notice of rent increase)
Each year the Ministry of Municipal Affairs and Housing sets a guideline for rent increases. Landlords may raise the rent for an individual unit by this percentage at their own discretion.
N2 (Notice of rent increase - unit partially exempt)
What constitutes exemption?
A building, mobile home park or land leased community, no part of which was occupied for residential purposes on or before November 15, 2018; and
Rental units located in detached, semi-detached and row houses meet and are subject to the following specific requirements:
The property cannot contain more than two residential units on or any time before November 15, 2018.
The unit must have its own bathroom and kitchen facilities and at least one exterior/ interior entrance.
Each entrance has a door that can be secured from the inside of the unit.
At least one door must be capable of being locked from the outside.
The residential rental unit came into existence on or after November 15, 2018; AND
One or both of the following apply:
i) The building is owner occupied
ii) The unit was created in a previously unfinished space.
N3 (Notice to increase the rent and/or charges for care services and meals)
N10 (Agreement to Increase the rent above the guideline) because:
Landlord has done or will do capital work, or;
Landlord has provided or will provide a new or additional service.
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Application Forms:
L1 (Application to evict a tenant for non-payment of rent and to collect rent the tenant owes)
L2 (Application to end a tenancy and evict a tenant or collect money)
L3 (Application to end a tenancy – tenant gave notice or agreed to terminate the tenancy)
L4 (Application to end a tenancy and evict a tenant – tenant failed to meet conditions of a settlement or order
L5 (Application for an above guideline increase)
L6 (Application for review of a work order about provincial maintenance standards)
L7 (Application to transfer a care home tenant)
L8 (Application because the tenant changed the locks)
L9 (Application to collect the rent the tenant owes)
L10 (Application to collect money a former tenant owes)
Some people believe that any landlord notice will immediately involve the Landlord-Tenant Board. We have all heard the horror stories, surrounding the fact that notices must be error free or result in a matter being dismissed. Ensure that you document everything, dates, times and what had occurred to ensure that you are operating within the boundaries of these notices. Notices are not amendable, applications are. The board needs a landlord to be clear in the details. These notices are the first step in initiating legal action against a tenant. If a tenant fixes the issue in a fault situation, a tenant can void the notice and the matter becomes moot. However, there are notices that are not voidable such as an N7 or the second serving of an N5. Both of these notices would prompt a hearing, where the board of adjudicators should determine if an eviction is warranted. The Board will step in when an application has been submitted after the termination date on the notice in most cases, as a result of conflict between landlord and tenant.
Notices listed above are the first official step to a case at the Landlord and Tenant Board. Once the termination date expires on the various notices in some cases, the landlord can file an application where applicable. In some cases, there is the option for early filing if the notice indicates.
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Scenarios
Sometimes an issue is not black and white and there are cases where multiple forms could apply. Let us have a look at some common situations where this is the case:
Situation: Tenant has not paid rent
Options: N4, L1/L9 + update form (When a landlord goes to the board after they have filed their L1 - before their hearing date they would send in an L1/L9 update form to confirm the current rent that is owed at the time of hearing)
Situation: Tenant has consistently paid rent late
Options: N8, L2
Situation: Tenant or another occupant in the rental has negligently damaged the unit, substantially interfered with reasonable enjoyment or another lawful right, privilege or interest of the landlord or another tenant, OR too many people living in the rental unit
Options: N5, L2 – 7 days to void the first notice within 7 days from the date of service if served in person. Second N5 is not voidable.
Situation: You as the landlord (or spouse, child, parent, spouses, child or parent/person who will provide care services for any of these people) have entered into an agreement to buy or one of these individuals wishes to move into the rental unit
Options: N12, L2
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Serving Notices
How you serve notices is also a very important part of the process. There are many ways that you can give this notice to your tenant. You can:
hand it directly to the tenant or to an adult in the rental unit,
leave it in the tenant's mailbox or where mail is ordinarily delivered,
place it under the door of the rental unit or through a mail slot in the door,
send it by fax to a fax machine where the tenant carries on business or to a fax machine in their home,
send it by courier, or
send it by mail.
You cannot give the tenant this notice by posting it on the door of the tenant’s rental unit.
The rules of service can be found under Rule 3 under the board’s rules of procedure. For more information, you can reference this link: https://tribunalsontario.ca/documents/ltb/Rules/LTB%20Rules%20of%20Procedure.html#r3
Landlord forms can be found and filled in online at the links provided below. Thankfully, there are also a variety of ways to file these forms including:
E-mail
In-person
Mail
Fax
Details for where to send these forms are located here: https://tribunalsontario.ca/ltb/contact/
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In summary, Landlord notices and applications are and should be a crucial component to your day-to-day operations. Despite being tedious to fill out, they are absolutely worth completing and understanding. Familiarizing yourself with them and knowing where to access them will make a huge difference, increasing your confidence as a landlord and decreasing your stress if you do require a hearing with the LTB.
Dear KRPOA member, what do you think about this month’s post? Did you find it helpful? Do you have any stories you wish to share or ideas you want discussed in the future? Feel free to leave a comment.
Other helpful links used to write or referenced in this article:
