Since its inception, this federally registered non-profit organization Small Ownership Landlords Ontario Inc. (SOLO) has advocated on behalf of Ontario housing providers as well as good tenants. Solo pleaded with the government to make them understand that the current Residential Tenancy Act (RTA) system is ripe with abuse and misuse due to built in delays. This creates an opposite effect of the intended “tenant protection” and aggravates the housing crisis as many landlords are leaving the Ontario market for “greener pastures” in other jurisdictions, reducing supply while demand increases.
The government just introduced a new bill 60 but still is avoiding to tackle the elephant in the room: how to handle non-paying professional tenants playing with the delays at the Landlords and Tenant Board (LTB) to rob small landlords of rent.
The Bill proposed by the government includes:
- shortening review requests and notice time,
- reviewing “endless leases”,
- forcing parties not to “trial by ambush” by disclosing issues before the hearing not the day of,
- defining “persistent late payments”,
- reducing the “stay aside” delay tactics,
- publishing the LTB public orders in a timely manner
- clarifying when to “postpone” or ”set aside” eviction orders
- remove “compensation” for own use when notice is given 4 months in advance
- etc…
However, the main irritant for many small landlords is the way “non-payment of rent” is handled under the current Residential Tenancies Act.
When tenants stop paying rent in Ontario, the landlord must first issue a Notice N4 and wait 14 days (7 days in the proposed bill) before applying for eviction at the LTB. While wait times have decreased from the peaks of 2021 to 2023, landlords must still wait 2 to 4 months just to get a hearing date.
That alone is at least four months where the landlord receives no rent while being obligated to maintain the property in working condition, as well as fulfilling obligations to pay insurance, property taxes, mortgage, repairs and other associated costs.
Even then, scheduled hearings are often adjourned or rescheduled due to overbooking or other delays tactics.
Once the case is heard, the adjudicator will have up to 60 days to issue a decision.
If the decision is favorable, there will be an order with a deadline ordering the tenant to leave. That deadline can be weeks or months depending on the adjudicator’s decision.
If the tenant refuses to obey the order, the landlord has to wait until after the eviction date to contact the sheriff to enforce the order. Wait times for sheriff vary from two to over ten weeks (Peel region is particularly bad), adding another one to three months.
A “professional tenant” can easily get a “best case scenario” up to 10 to 15 months rent free.
How will law-abiding, good tenants who pay their rent on time feel seeing a tenant who refuses to pay rent get away with this?
How will small landlords feel about being landlords in Ontario? Many have already given up and are now investing in friendlier, common-sense jurisdictions elsewhere in Canada or the U.S., or have properties that sit empty.
SOLO will be explaining to the MPPs that while this Bill 60 is a step in the right direction, we will demand that an alternative resolution system within the framework of the LTB be implemented and mandatory mediation be required for all uncontested non-payment of rent disputes. Trained mediators will assess the amount owed and the likelihood of repayment and propose to the adjudicator to endorse the decision a without a formal hearing.
SOLO has taken the position since day one that there is no reason to have a full-fledged hearing for uncontested non-payment of rent. It is a waste of tribunal resources and an incentive for bad actors to clog the system and delay lawful evictions.
We support Bill 60 and encourage all the MPPs to vote for the sake of good Ontario landlords and tenants
Boubah Bah
Director CoFounder
Small Ownership Landlords Ontario Inc.
