Landlording – You can get in but you may never get out

June 1st, 2017 · Tell Me What You Really Think Here · Kids & Family

The Rental Fairness Act has passed and received Royal Assent May 30th. You can read it yourself here.

Yes the Rent Increase Above The Guideline has been lost, but worse than that are the new rules about the N-12 which is the Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit.

So in the past a lot of fast and loose games were played with this form and landlords felt that they could just terminate the tenancy and “say they wanted to move in”. Paralegals in the know have said that you should plan to occupy the unit for at least a year if you use this form, but now that has been enshrined in the law.

How it works is you would give an N-12 notice, the tenant moves, and then up to a year later, they could pursue you for Notice in Bad Faith.

Read It and Weep

Here are the new grounds for Notice in Bad Faith and addition of payment of one month’s rent compensation payable up to the last day of the termination period.

8 The Act is amended by adding the following section:

Compensation, notice under s. 48

48.1  A landlord shall compensate a tenant in an amount equal to one month’s rent or offer the tenant another rental unit acceptable to the tenant if the landlord gives the tenant a notice of termination of the tenancy under section 48.

9 The Act is amended by adding the following section:

Compensation under ss. 48.1, 52, 54 or 55

55.1  If the landlord is required to compensate a tenant under section 48.1, 52, 54 or 55, the landlord shall compensate the tenant no later than on the termination date specified in the notice of termination of the tenancy given by the landlord under section 48 or 50.

10 Section 57 of the Act is amended by adding the following subsections:

Presumption, notice under s. 48

(5)  For the purposes of an application under clause (1) (a), it is presumed, unless the contrary is proven on a balance of probabilities, that a landlord gave a notice of termination under section 48 in bad faith, if at any time during the period described in subsection (6) the landlord,

  (a)  advertises the rental unit for rent; or

  (b)  enters into a tenancy agreement in respect of the rental unit with someone other than the former tenant;

   (c)  advertises the rental unit, or the building that contains the rental unit, for sale;

  (d)  demolishes the rental unit or the building containing the rental unit; or

  (e)  takes any step to convert the rental unit, or the building containing the rental unit, to use for a purpose other than residential premises.

Same

(6)  The period referred to in subsection (5) is the period that,

  (a)  begins on the day the landlord gives the notice of termination under section 48; and

  (b)  ends one year after the former tenant vacates the rental unit.

No More Games

There will be no more fun times for landlords and getting your tenant out to take your unit just became exponentially harder. Obviously this is aimed at the specuvestors who were just waiting to sell. I have heard of some crazy stories, people hiring stagers while the tenant is still living there and cleaners etc.

Mostly I have heard a lot of landlord complaining the tenant doesn’t keep things clean enough or bend over backwards enough to allow for showings etc. At these times I remind them that while they themselves may make a ton of money on the sale of their property, after having a bunch of strangers interrupting them and looking at their underwear drawers, tenants get an eviction notice and higher rent elsewhere. It’s not hard to see why tenants are not so enthusiastic about the sale of the property.

In case you were wondering, the obligation lays with the land which is a funny way of saying that the new buyer is going to be responsible. If they say they are moving in, they’d better not rent it out for more money. There’s going to be a lot more assumption of tenants going forward.

Over and Out

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