BACKSTORY: We are learning a hard lesson through our first eviction in 30 years! We have lost over 30,000 dollars and plus in unpaid rent and damages during Covid. Our paralegal was our saving grace!
We rented a home to a couple on Ontario Works / Ontario Disability Support Program (OW / ODSP) and they always paid their rent, sometimes late for the first one and half years until Ford said you can’t get evicted during COVID moratorium.
They collected CERB while banks would not approve a mortgage deferral for small landlords and the COVID business loan was denied if a small landlord used a personal bank account rather than business bank account and property was held personal rather than a corporation. They were not required to repay CERBS but our service working friends had to repay.
Once the moratorium was lifted we delivered our storage cube to their driveway with a notice of when we were moving in and would be reporting them for fraud and calling the police. We learned you will never collect the 15,000 dollars in unpaid rent from tenants on OW / ODSP.
Our next mistake was accepting a tenant vetted from a realtor and they provided the credit report!
This is our first experience with an eviction in 30 years. We don’t consider ourselves paranoid but we want to share our experience and help new landlords avoid these mistakes.
We are joining the SOLO legal fund to help fight for landlords of Ontario. In memory of the landlord who took his life we just want to help others avoid the expensive lesson we learned this year….
Watch for another update soon !
On our rental application we request/require last month rent (LMR) rent payment by e-transfer. Using e-transfer creates an easy rent log as proof for the evidence file for eviction at the hearing. If the tenant can not agree and send the rent deposit of LMR by e-transfer we withdraw them for consideration to our unit. They may point out we can not require monthly rent payment by e-transfer however we can require it for LMR.
NEVER accept a full year of cash payment up front bc in month 2 they can apply for refund AND not pay rent.
-
-
- If they offer you cash that’s because often times they can not open a bank account and they owe someone money!
- It is always cheaper to take 3-4 months to find the right tenant than it is supporting a tenant for a year that destroys your unit before leaving.
- Investigate setting up your unit as an AirBnB while you search for the right tenant. There is a new company that installs furnished packages!
- Rent is always due monthly and never write into the lease offering weekly arrangements.
Rent is due on 1st of the month on the 2nd send an email the N4 will be delivered to your mailbox after 5:00 pm today. Do NOT delay serving that N4 NO MATTER WHAT EXCUSES!
-
Termination date is 17th.
Offer a payment plan that must be signed and returned ASAP on the 10th and send an email as documentation.
Continue to file the L1 for your N4 non payment of rent before 30 days! If they send a partial payment right before termination date but never send the next payment.
-
- File Certificate of service with dated and initials footnoted. You might be required to swear under oath at a hearing.
- File L1 N4 non payment of rent 18th with no delays.
- Never reissue the N4 if they send partial payment on the 16th or earlier with a promise to pay on blah blah blah date.
- Double check your N4 for all tenants names listed on lease, full address w postal code AND SPECIFIC UNIT # and rent collected on L1 end of month date not beginning of rent due date.
- Eviction evidence MUST be filed 7 days before hearing.
- An N5 served must have the L# form filed with LTB before 30 days to avoid getting thrown out.
- If you correct anything on your form like clearly writing over date numerals always initial next to the ink correction!
A good paralegal is worth their weight in gold !!!
This bears repeating……
A good paralegal is worth their weight in gold !!
-
- Always post a 24 hr notice of entry to the door AND take a photo as proof! On the NOE record TIME posted w initials. Unlawful entry carries a potential 25,000 dollars fine.
- Always serve the N4, N5 etc as multiple reports will support your eviction case. If problem is resolved w/in 7 days and/or full rent is received great but hold on to your proof.
- Stop all text communication immediately move it to email to create a paper trail.
- Move your tenant communication off your personal phone to the centralized support we describe below. (Before COVID we were on holiday and our assistant took over as PM but we could see all the communication.)
- Setup the hushed app with auto robot reply.
- Setup a Google form to capture all maintenance request.
- Setup square app to send auto rent reminder and auto late/thank you emails monthly (very helpful for eviction evidence)
- Setup a Google form for your new rental inquiry to ask a pre screening questions.
- Setup a Google form rental application to further screen tenants. Provide the link at the bottom of your inquiry form.
Setup STESSA app to manage documentation from tenants:
upload the signed documents:
-
- standard lease agreement, additional terms agreement,
- email communication agreement, tenant proof of insurance,
- tenant drivers license & plate info,
- tenant proof/source of income,
- tenant utilities agreement,
- Pictures of the rental unit,
- Facebook or social media accounts to help w skip tracing when MIA
(Have we missed anything?) - Schedule a telephone interview BEFORE scheduling the actual property walk through.
- Look into using Calendarly app to allow applicants to schedule their telephone interview and/or walk through appointment around your predetermined availability.
- Setup a central GMail account so tenants no longer text or email to you personally.
- Setup a PO Box/mailbox location so tenants do not know your home address.
- Setup keyless entry to your homes. This avoids tenants breaking windows when they lose their key.
- Setup external security cameras that capture video activity.
- Install FLOW WELL system at the back of property to keep water away from the house.
- Change plastic water lines to braided cable lines and consider WIFI water alarms.
- Install WIFI thermostats to send reminders and temperature alerts.
- Review your additional terms agreement and video camera recording policy w a paralegal.
- Always wear a body camera when attending a property and bring a witness if you can.
- Hire professionals for lawn and snow maintenance to reduce liability.
- Build dollar per unit reserve/PM into your cash flow planning.
- Never discuss issues with tenants as they can secretly record you and mislead you into getting them to receive rent abatement.
- Always require an email for documentation proof.
- Always remain calm and professional in emails and on site visits. Stick to the topic/purpose for the visit.
- Do not get caught up or dragged into a tenants personal drama!
You are not their mental health Councillor, their personal security guard or their free paralegal.
You are not their friend. You are their landlord and this is your business!
If complaint of heat loss call service ASAP. Record temperature reading within 2 hrs of emergency call. Offer alternative heat like room heater or overnight hotel stay during temperatures set by guideline. - If property turns negative cash flow:
Take steps to sell ASAP!
Send an email asking for the mutually agreed rental increase.
If this has failed then send 60 day property sale notice to sell.List with a realtor to sell and state vacant procession not guaranteed (or something like that from you paralegal review) - Serve N11, N12 with POS agreement
Remember the tenant payment must be paid on time
File eviction request to sell with the LTB (process could take 3-12 months!)
Serve rent increase Sept 1 giving a 90 day notice effective Jan 1.
Always obtain 3 quotes for work to be performed by licensed professionals. Require references, pictures, proof of license, and insurance. The first two can be faked but the last two are critical! The last person to touch a job can be held liable!
Annually review your property insurance.
- Notify insurance of property VACANCY in between tenants and shut water off. They are required to maintain 30 policy but will try and stick you with an additional surcharge. They do not cover flood or vandalism of vacant property. They will check water records to determine length of vacant property and to deny your claim! Check vacant property daily or every other day.
- Only insure for a major catastrophe with a high deductible like a fire.
- Establish a large personal liability insurance to protect yourself.
- Never call your insurance company about any small claims. Just fix the issue because they can still drop you just for calling! FYI, a claim can follow your profile for 7 years!
-
-
- Annually check roof & clean gutters.
- Quarterly change furnace filters.
- Monthly inspect homes to check smoke alarms & CO2 still function. This standard came from our city inspector! Keep records of these inspections.
- Weekly drive by the property. FYI, This recommendation came from our city inspector.
-
- Setup your mortgage payment as weekly accelerated to shave 4-5 yrs off your mortgage.
- Establish a revolving Home Equity Line Of Credit (HELOC) on your property that grows as the mortgage is paid down and keep a small balance on the HELOC to avoid the bank closing due to inactive account or a zero balance.
- A mortgage plus loan is NOT a revolving HELOC and has an expiration date! Use it or lose it.
- A HELOC for investment use only can be written off against rental income. Do not mix use of funds.
- Learn about the smith maneuver, velocity accelerated banking or pay check parking strategies to accelerate mortgage pay down.
- Always keep a small balance on the HELOC to avoid bank closing.
- Keep an unsecured LOC at a different bank that is an emergency fund in the event a HELOC gets closed or called in.
- When performing a refinancing or moving your mortgage to a new bank use caution not to lose that LOC!
- Learn about private lending, front or bank end point fees, open/closed terms, mortgage wrap, 1/2/3 mortgage position rates and the risk of a poor exit strategy.
- Investigate using Naborly, single key, landlord credit bureau services.
Our insurance company has a new product we will review that covers tenant vandalism and tenant rent collection.
PERFORM YOUR DUE DILIGENCE!
YOU PULL THE CREDIT REPORT!
This bears repeating…..
PERFORM YOUR DUE DILIGENCE!
YOU PULL THE CREDIT REPORT!
This is an opinion of Sally Moore Gilbert, a SOLO Landlord. Views expressed in this posting are the views of the author only and do not necessarily reflect the view of SOLO Landlords Inc. who assume no liability for following the SOLO landlord’s advice contained here.
