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Originally Posted On: https://frontlobby.com/2023/02/landlord-tenant-board-eviction-process/

The eviction process in Ontario is governed by the Residential Tenancies Act (RTA) and enforced by the Landlord and Tenant Board (LTB). The LTB is responsible for mediating disputes between Landlords and Tenants, adjudicating claims, and issuing orders when necessary. Therefore, any Landlord or Property Manager who wishes to evict a Tenant must begin the process by filing an application with the LTB.

When to Evict a Tenant for Non-payment of Rent

Although evicting a Tenant is typically an action of last resort, it can become unavoidable in specific scenarios. According to a recent survey, 10% of rental agreements end in a Tenant eviction. As a result, many Landlords and Property Managers have had no choice but to experience the stress associated with eviction proceedings – both emotionally and financially.

The Average Eviction Costs
a Housing Provider $11,000

The most common reasons to end a lease with a Tenant eviction include:

• Not paying rent (in arrears)
• Violating any of the terms of the lease agreement
• Causing damage to the property
• Creating a nuisance on or near the premises or engaging in illegal activities
• Engaging in any activity that is illegal or puts the property at risk

What Can a Landlord Do if a Tenant Stops Paying Rent?

The weight of having a Tenant who doesn’t pay rent can take a serious toll on a Housing Provider’s finances and well-being. Because of this, it is essential that all rental payments are reported to the Credit Bureaus. Not only has Rent Reporting proven to decrease delinquencies by as much as 92%, it has also helped boost credit scores by 84pts.

Learn More About Rent Reporting

If a Tenant chooses to not pay rent, there are a few steps you can take:

1. You can inform the Credit Bureaus of the unpaid rent
2. You can give the tenant a notice asking them to pay the rent they owe or move out
3. You can apply to the LTB for just the rent owed
4. You can apply to the LTB for rent owed and to evict the Tenant

1. Inform the Credit Bureaus of Unpaid Rent

A recent poll indicated that in the last year, almost half (46%) of housing providers faced late or unpaid rent payments, and the majority of those surveyed depend on rent for their mortgage payments.

If you are a Housing Provider with unpaid rent, or reoccurring late payments from Tenants, consider submitting your monthly rental data to the Credit Bureaus using FrontLobby. Once the rental data is shared, the rent payment will appear as a tradeline on the Tenants’ credit report and depending on its status will either positively or negatively impact credit. According to happy customers, rent reporting has proven to reduce delinquencies by 95% and improve credit by 33 to 84pts.

Start Rent Reporting

2. N4 Give the Tenant Notice to Pay Rent or Move Out

If a Tenant chooses to not pay rent on the day it’s due, you can give the Tenant a notice asking them to pay the rent they owe or move out. Fill out an N4 form, Notice to End a Tenancy Early for Non-payment of Rent and serve it to the Tenant. This will inform the Tenant that if they refuse to pay the rent or move out, you will file with the Landlord Tenant Board (LTB) and proceed with a Tenant eviction.

Download N4 Form

We have provided a quick download for the current Ontario N4 form. To obtain the most recent copy, you can visit tribunalsontario.ca/ltb/forms/.The rules around evicting a tenant for non-payment of rent can vary from province to province so it is important to check the legislation in your jurisdiction.

Important Rules About Termination Dates

• The date by which you want the tenant to pay the rent is called the “termination date”.
• If a tenant rents by the day or week, the termination date must be at least 7 days after the notice is given.
• If a tenant rents month-by-month or has a lease for more than 1 month, the termination date must be at least 14 days after the notice is given.

Notice is Void if the Tenant Pays

If the Tenant pays all of the overdue rent before an application is submitted to the Landlord and Tenant Board (LTB). If this happens the Notice to End a Tenancy Early for Non-payment of Rent will no longer be valid; consequently, the Tenant can remain in the property.

There are two requirements the Tenant must meet to void the notice. First, the amount of arrears (overdue rent) in the N4 notice must be paid in full, plus any additional rent payments that were due after they received the notice.

3. L9 Apply for Just the Rent Owed

If you don’t want to resort to eviction, consider applying for an order that requires the Tenant to pay you the money they owe. This is done by submitting an L9, an Application to Collect Rent the Tenant Owes form to the Landlord Tenant Board (LTB).

Download L9 Form

We have provided a quick download for the current Ontario L9 form. To obtain the most recent copy, you can visit tribunalsontario.ca/ltb/forms/. The rules around non-payment of rent can vary from province to province so it is important to check the legislation in your jurisdiction.

Important Rules About L9 forms

• You can only file this application if the Tenant is still living in the unit.
• You can file this application the day after rent is due.

4. Apply for Rent Owed and to Evict the Tenant

If the termination date outlined in the N4 notice, has passed and the tenant still hasn’t paid the rent, or if they have failed to move out, you can apply for an order that requires them to both pay outstanding arrears and also vacate. Use the L1 Application to Evict a Tenant for Non-payment of Rent and Collect Rent the Tenant Owes.

Download L1 Form

We have provided a quick download for the current Ontario L1 form. To obtain the most recent copy, you can visit tribunalsontario.ca/ltb/forms/. The rules around non-payment of rent can vary from province to province so it is important to check the legislation in your jurisdiction.

Important Rules About L1 Forms

• You cannot file this application unless you gave the Tenant a Notice to End your Tenancy Early for Non-payment of Rent (Form N4).
• The earliest day you can file this application is the day after the termination date in the N4 notice.
• You can only file the application if the tenant is still living in the unit.
• You must include a copy of the N4 notice and a Certificate of Service for that notice with your L1 application.
• The tenant or Tenants that you name in the L1 application should be the same people you named on the N4 notice that you served.
• Make sure you have correctly calculated the total amount of rent owed (Not including utilities).
• If your application is not signed and dated, the Landlord Tenant Board (LTB) will not accept it.

 

What to Do if a Tenant Moves Out with Unpaid Rent?

If a former Tenant owes you money for unpaid rent or compensation, you can report the debt to the Credit Bureaus. Reporting debts to Credit Bureaus has always been an effective way of recovering money owed. Banks, Telcos, and other companies have been using this method for years to recoup their losses. As a Housing Provider, you can report a debt from a past Tenant using the FrontLobby portal. Canadian legislation allows you to report debts from the past six years.

Learn More About Debt Reporting Once the debt is registered on the Tenants’ Credit Report, it may be accessed by other Landlords during the Tenant screening process. Through your account with FrontLobby, you may also notify the debtor of the debt and associated impacts to encourage resolution before you report the debt to Credit Bureaus.

What You Need to Know

The eviction process in Ontario can be complicated and overwhelming, this coupled with the stress of having a Tenant not paying rent can be enough to deter Housing Providers from taking the necessary steps to protect their rights. It is important to know that you can take action and there are several options available to you. Depending on your specific situation, it might be wise to contact a legal professional for advice and guidance if you are considering eviction of a Tenant due to non-payment of rent.

The consequences of non-payment of rent can be serious for both Housing Providers and Renters. By understanding the legal processes available, you can make sure that your rights are protected as a Housing Provider while still being respectful of the Renter’s situation. With FrontLobby, you have access to the tools needed to ensure timely payments from past Tenants and protect yourself against future losses due to unpaid rent.