It’s such a pleasure guest blogging for Chris. I’m grateful for this opportunity to provide his readers with some real value. For my first post, I wanted to give you a taste on what it’s like managing properties in Ontario.
The Landlord Tenant Board is a regulation nightmare for Ontario real estate investors. One wrong move could prevent you from evicting a problem tenant in a timely matter, which means to you extra costs and more stress.
Believe me, there are few things more terrible for investors to deal with than problem tenants. This is why specialty companies such as Landlord Legal exist (their sole purpose is to evict problem tenants for landlords). Landlord Legal’s founder, April “the Terminator” Stewart, and I came up with 4 ways the odds are stacked against you from the get go.
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Tenants |
Landlords |
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| Disclosure | Names and addresses of any landlord who has made a filing with the Landlord Tenant Board is available for a fee | Landlords don’t have access to any eviction records |
| Legal Representation | Any tenant, regardless of their income, is automatically qualified for free legal advice and representation at the landlord tenant board. | Landlords are expected to “know” what is required of them, how to prepare legal documents, how to represent themselves, or retain paid representation |
| Security | Don’t have to pay security deposits to cover any damage if they destroy the place. | Cannot deduct damage from tenants last months rent (their only form of security). Real estate investors have to add the amount spent on repairs ONLY to the rent at the final month of tenancy. |
| Fees | Tenants wishing to bring their landlord to the landlord tenant board only pay a maximum of $45 (sometimes no fee at all) | A landlord wishing to bring a matter before the Landlord and Tenant Board must pay a $150.00 filing fee. |
When managing property in Ontario, be extra careful: take that extra step in doing your background checks, take care of your tenants, keep meticulous records and be prepared to go the board at some point in your career.
Brian Persaud from Real Experts Inc has been a REIN member since 2005 and currently owns property across Ontario, Alberta and Florida.
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There’s no excuse for a real estate investor not to know the Law. In Alberta you can read it for free online, download it or...
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That is brutal! Why and how are these laws made? Is it because tenants have been making more noise over the years to the MLAs?
-Jerry
Thanks for the post Brian! I’ve heard lots of horror stories about the OLTB, but your chart gives us some context to show how difficult it really is.
I wish it wasn’t true, but it is a long road for private landlords who run into problem tenants. Just a quick note: the filing fee for landlords just went up to $170.00. The fee for a tenant to file an application was not raised!
We have embraced your cause and are here to help!
C. April Stewart, aka “The Terminator”
Landlord Legal
Barrie, ON
Read the article – watch the video – http://www.newsdurhamregion.com/article/123419
Wow dead animals in the garage!?!?!
Thanks for the update April…with you on our side, no REIN member would ever go through what those folks went through
A biased opinion is not worth the paper it is written on. There are as many problematic landlords in Ontario. Many of them have no idea what their responsibilities and obligations are to their tenants. Most landlords have not accessed, researched and made themselves aware of the LTB material not only available; but required of the landlord to be knowledgeable and versed in to deal with their tenants properly. I’ve rented [3] times in Sudbury, ON and the illegalities under the LTB Act that the landlords have permitted themselves and other tenants to do is unconscionable. I have found all [3] landlords quite capable of lying, cheating, being indifferent to their responsiblities and obligations, quite accepting/permitting/supportive of illegal activities in their buildings. All [3] landlords have regularly and consistently used methods of harassment and support the efforts of their other tenants in concert with themselves to “poison the environment”
Hank, I think a lot of the problem with the lack of understanding on both sides is that the legislation in Ontario is excessively burdensome and very biased in favour of tenants, at the expense of legitimate landlords.
Hank, sorry for your problems.
You could have called the many powerful tenant activist groups and received free legal advice to deal with your situations. A landlord facing a similar situation is on his own.
Both sides could have crappy people…just one side the system makes it easier to continue to be crappy.
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