Dealing with Non-Payment or Late Payment of Rents

When a tenant fails to pay rent, is consistently late, or has a history of habitual late payments, landlords have several options to address the situation. Below is an overview of the process involving the Landlord and Tenant Board (LTB) in Ontario.

Landlord's Options

1. Communication: Before taking formal steps, landlords should communicate with the tenant to understand the situation and attempt to resolve the issue informally.

2. Notice of Rent Owing: If the tenant does not pay rent on time, the landlord can issue a Notice to Terminate a Tenancy Early for Non-Payment of Rent (Form N4). This form states the amount owed and provides a deadline for payment.

3. Application to the LTB: If the tenant does not pay the outstanding rent within the specified time in the N4, the landlord can file an application with the LTB for an eviction order (Form L1).

4. Eviction Process: The LTB will schedule a hearing where both parties can present their cases. If the landlord wins, they may receive an order for eviction.

5. Enforcement: If the tenant does not leave after the eviction order, the landlord can apply to the sheriff for enforcement.

   
   

Relevant Laws

The primary legislation governing landlord-tenant relationships in Ontario is the Residential Tenancies Act, 2006. It outlines the rights and responsibilities of both landlords and tenants, including the processes for dealing with non-payment of rent.

Tenant Defenses

Tenants may have several defenses, including:

1. Habitual Late Payment: If late payments are a recognized pattern but the landlord has accepted them without issuing notices, this may weaken the landlord’s case.

2. Landlord’s Actions: If the landlord failed to maintain the property or breached their obligations (e.g., failing to provide essential services), the tenant may argue this as a defense.

3. COVID-19 Protections: Depending on the time of the issue, tenants may have protections related to pandemic-related evictions or payment plans.

4. Disputes over Rent Amount: If there is a disagreement about the amount owed (e.g., due to incorrect charges), this can also serve as a defense.

Conclusion

Landlords have a structured process to address non-payment and late payment of rent through the LTB, while tenants also have defenses they can assert. Understanding these processes and the relevant laws is crucial for both parties in resolving disputes effectively.