Successful Tenant Rent Collections in Ontario

September 24th, 2017 · Property Management, Rental Property

 

Rent Collection Checks

I told all you readers a while back that I would be performing an experiment to challenge the idea that continuing to try to collect rent from deadbeats after they have moved out is throwing good money after bad. That picture is the three checks I got from the paralegal from old tenants that were evicted, all for non payment. I was told this for a long time when I worked in buildings and in property management.

It’s a lie. So far I have doing very well, with very little bullshit chasing them around for money. It’s really refreshing after begging and cajoling for years in some cases, to just be able to seize a bank account or garnish a wage. All of these checks are seizure and garnishment checks and I have recovered my legal fees as well.

I’m really happy I did this experiment, so far we are enroute to collecting on all the Orders.  This year I’ve had several people skip out inexplicably in the middle of the lease one after one month in the place. That is going to court as well.

In fact it’s going so well, that if you have any tenants who have ripped you off, and you aren’t going to follow through with collection of any kind, I would love it if you would assign the Order to me so I can follow up and try to collect. It’s a good debt for up to 6 years.

Keep in mind, I am putting up my real money or the owner’s real money to collect on these debts. You must pay the paralegal up front, and depending on how much work he has to do, it can be $500 to $1500 or more you have to pay. In any case, if you don’t plan to do anything, please pass it over so I can shell out some justice, Landlord Rescue style. Frankly if more landlords followed though these tenants would just have to stop.

The paralegal I am using for this Small Claims work is Masoud of quicklegal@gmail.com or you can call him at 416-880-4600.

Happy Collecting

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My Mental Hospital is Full

August 31st, 2017 · Property Management

August is the busiest time of year for us rental agent/property managers. Last night I was up late because I closed a lease late, after waiting around for an appliance delivery from 11-3.

This morning I was tired, my car was out of gas, and I was halfway to Oshawa when I realized I did not have the lease I was going there to sign.

Dina called me while mediating the latest iteration of a multi year tenant dispute. Yep you read that right, a multi year tenant dispute. She’s tells me “My mental hospital is full !” and I started to laugh, and laugh and laugh. I laughed for so long my stomach hurt, but a good kind of hurt that I needed because my mental hospital was also full.

Patient A & B

The multiyear tenant dispute is hard to deal with and the result of the tenants just hating each other combined with the stress and strain of community living. There is just something about duplexes, that leads to a lot of tenant disputes that you don’t see in apartment buildings or condo buildings. There is something about sharing a house, that seems to increase territoriality in tenants.

We get long emails from each party alleging issues that can’t be proven, or aren’t actionable.  So it goes on and on, year after year.

Patient C & D

I had a lovely couple move into a fantastic condo, and claim there was a horrific cockroach infestation and mold. The owner lived there for 7 years in a condo and obviously never saw a cockroach, although we will freely admit to a lack of cleaning behind the washer dryer unit and oven. Anyhow I just got a message to come and pick up the keys.

Patient E

When a landlord asks you on a rental application if you have been evicted…

Yes ; because of the legal delay caused by the multiple fires at _____________ due to the electrical faults of the house wiring of the landlord, I missed my first ODSP hearing and then I was too far behind financially to pay for both food and rent for my apartment that was medically necessary for my physical functional impairment disabilities. During the LTB hearing, my doctor, ____________ gave expert testimony of my substantial risk, saying that I was not strong enough physically to withstand moving and also that there were no environmentally safe housing options open for me to move to anywhere in Ontario. A LTB Adjudicator without any medical training made a decision before I could solve the ODSP legal issues. Upon being evicted and unable to find any safe housing that is correct for my disabilities, I almost lost my life twice in the last year.I have used my military survival training that I was fortunate to receive in the 90’s during minus 40 degrees weather, camping outdoors in Algonquin Park, plus other extremely advanced mind-over-matter strategies to save my life. Since the mid-80’s I have trained with many of the finest doctors in the world and from 1988 to 1991, I was the manager for an international teaching doctor who gave me accolades for “doing the impossible”

Patient F & his stalkers

This lovely man moved in to a lovely house. He claims that there are people who are following him from place to place, talking to him and I have to kick them out. There are no other people that anyone else can see. It just makes me sad.

Patient G

This ladies application was turned down and after multiple calls from her & her boyfriend I was going to allow her mom to co-sign the lease for her.

It was a big no from mom, because what if she moves again, landlords are shysters, and she doesn’t want to be on the hook for it. If your mom won’t sign for you… you got problems.

Patient H & I

Dina & Rachelle, your friendly property managers, soon to be in straight jackets, it’s the new de rigeur wardrobe for property managers on the go.

Tomorrow is another day, and some of my patients will be discharged, and Dina and I will be ready for new challenges and the occasional new admission.

We manage properties, so you don’t have to. 🙂

 

 

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Downtown Toronto Trump Building Renamed

June 28th, 2017 · Kids & Family

So there’s a good chance most of you have not been following the nightmare that Trump Tower was to investors. My understanding is that the promised returns were exaggerated and expenses understated.  Not really a surprise, but investors were misled. You might also say, they were bled dry, because a lot of them didn’t or couldn’t close.

Then the developer Talon defaulted on it’s loans.

Not surprisingly it seems like the Trump brand is waning at least in Canada and the building which is supposed to be a posh hotel, attracted protesters of all kinds even though Trump just plastered his name on it and manages the hotel. He doesn’t own the building.

Then the new owners of the hotel, paid Trump 6 million ?? to take his name off the building, which all things considered is a fantastic deal.

This whole development story is something else. Anyhow hopefully now the new buyer can hopefully turn this building into a going concern.

Bye Felicia.

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Harmony Village Sheppard Site in Limbo As Fortress Appeals The Sale Of The Property

June 26th, 2017 · Property Management

A few people seem to think that Fortress has financial problems and can’t follow through and close deals and build buildings.

Show me the money for St Regis development.

Sky City Center Development Investors Not Getting Paid.

The following quotes are sourced from the bankruptcy filings of the Harmony Village Developments.

Stalking Horse Bid was predicated upon Fortress assuming the Debtor’s agreements of purchase and sale with the Purchasers. It was also,in part,a credit bid. Although DSFI was to have been paid in full on closing, the purchaser was to have assumed the existing debt secured under the second and third charges.

On the afternoon of April 6, 2017, the Receiver was advised that Fortress would not complete the purchase of the Property pursuant to the Stalking Horse Bid, as it no longer wished to assume the Purchasers’ agreements of purchase and sale.

    As such, the Receiver reported that as a next step it would contact those parties who had expressed an interest in the Property during the Stalking Horse Process to invite them to submit offers.

The deposit paid by Fortress thereunder of $350,000 forfeited to the Receiver.

Receiver Actually Refers to “Lift”

Fortress planned to assign its rights under the Stalking Horse Bid to a builder/developer with whom the Receiver had not had prior dealings. Upon learning of this, the Receiver obtained assurance from counsel to Fortress that the assignment would not result in Fortress receiving a financial “lift” that would otherwise flow into the Debtor’s estate if the Property were sold directly to the assignee.

It seems like the receiver is concerned that Fortress is trying to make money as the middleman in the transaction between the Receiver and the Buyer.

Put On Your Big Boy Pants

Given Fortress’s repudiation of the Stalking Horse Bid and its prior plan to assign its rights as purchaser (which suggested that Fortress’s control over completing a transaction may be limited), the Receiver, through its counsel, advised Fortress’s counsel that a substantially larger deposit, in the range of 10% of the purchase price for the Property, would be required and the Receiver would need to be satisfied of Fortress’s financial ability to close.

Boom

In the email, the Receiver’s request for an increased deposit was rejected.

Boom Boom

On April 20, 2017, the Receiver was notified that Fortress’s first mortgage financing commitment to purchase the Property had expired.

On April 24 and 25, 2017, counsel for Fortress and the Receiver exchanged emails in which it became apparent that Fortress did not have the requisite financing in place.

On April 27, 2017, the Receiver’s counsel again requested evidence of Fortress’s financial ability to complete the Fortress Offer. No such evidence was provided to the Receiver.

Another Offer Appears

Fortress wrote a letter to the Receiver accusing them of malfeasance because the buyer decided to cut them out of the deal. So this is the Receiver’s reply.

The Receiver vigorously denies your allegations that it has acted in a manner which is inappropriate. There is no existing contract between the Receiver and your client. Following your client’s termination of the Stalking Horse Bid, the Receiver informed the Court and all stakeholders at it would continue marketing the property for sale.

In re-marketing the property, the Receiver has not breached any of its duties. The Receiver has been taking reasonable steps to market the property to all potential purchasers. Your client’s second offer, which was submitted following its repudiation of the stalking horse bid, has not been accepted by the Receiver and the Receiver is at liberty to continue marketing the property for sale.

Len Gangbar counsel for (redacted) contacted David Preger on an unsolicited basis and advised that (redacted) was making an offer on its own. Mr. Preger suggested that (redacted) work with Fortress.

The Receiver, through its counsel, has repeatedly informed you that it requires your client to provide evidence of its ability to close a sale transaction. Notwithstanding those requests, the Receiver has not been provided with evidence of your client’s financial ability to close.

The Receiver has continued to market the property, as it disclosed it would and would have been breaching its duty if it had not. The Receiver was and is prepared to consider all offers submitted.

The Sale is Approved

No one knows what the final purchase price is, we only know that the sale amount from the Developer (Pinnacle) is less than the existing mortgages on the property. How much is not yet revealed. No one knows except the receiver and the courts what the losses are.

The Sale is Appealed

Then Fortress decided to appeal the sale. Ok then.

The learned motion’s judge made palpable and overriding errors of fact and law resulting in the occurrence of a substantial wrong or miscarriage of justice.

The learned motion’s judge erred in accepting that the Receiver’s recommendation that offer to purchase the Property from Pinnacle International Sheppard Lands Inc. (“Pinnacle Offer”) be approved as it was the best offer to purchase the Property from the point of view of the majority of stakeholders.

Sorrenti, as trustee for the investors in the syndicated third mortgagee, will incur a loss in excess of $10,000 should the Property be sold to Pinnacle pursuant to the Vesting Order. If the Sorrenti Motion had been granted and the Fortress Offer accepted, the investors in the syndicated third mortgagee would not incur a loss on the sale of the Property.

So there you have it, the appeal.

More to come…

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Harmony Village Sheppard Project Defaults on Pre-Construction Buyers

June 26th, 2017 · Property Management

The project is bankrupt and in spite of having received millions of financing there’s no sign of it on the site, which is still a parking lot with a hole or two dug in it and some piles of contaminated dirt lining the back of the property.

None of the developers who could have bought the bankrupt site, wanted the original purchasers of the site from 2011. Which begs the question, why wasn’t the building built as soon as the buyers were in place.

Bottom line is the buyers got screwed by putting down payments on the project and the builder just failing to build. We don’t need too many more of these failures, to wind up with a very disillusioned buyer pool and there have been a number of these kind of failures. See developers do not give a shit about buyers, and with these kinds of appreciation it’s just simply more profitable to throw your original buyers under the bus, give them their money back and move on.

The problem with this type of behavior is it eventually comes back to haunt the industry because these types of abuses invite new regulations. Just ask the landlords how they like their new 1.8% rent increase for 2018.

Just this year, we’ve had Urbancorp go bankrupt, Mimmico on the Go, and now Harmony Village Sheppard.

Consumer Confidence Will Suffer

 

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