How To Save 100% Of Your Income Tax

August 26th, 2010 · 9 Comments · Kids & Family, REIN, Rental Property

I wrote a devilishly satirical essay  that explains how Canadians can save up to 100% of their income taxes over at Money Smarts Blog. It is by the way 100% legal and anyone can do it. It requires no special skills. You can go check it out it’s called How To Reduce Your Income Tax

Update to REIN situation

I also want to point out that after my post I Was Wrong About REIN after going out of my way to clarify the error I had made, I did not so much as receive a thank you. I have now been thanked as of April 26th 8:06 pm.My signature on the REIN forum did not get put up again. I was offered help with my victim and even though I emailed back what could be done no response was forthcoming.

I feel like the lady who holds out for a while then gives in and never hears from her suitor again. I’ll be editing the post again to reflect the new realities revealed by current inaction. I have crossed out all references to nice stuff REIN offered or said until they actually appear.  I’d hate to have people be mislead into thinking REIN is some kind of altruistic organization when I have no idea how they actually are except for their online forum. Furthermore I took the emailer at his word when he said they take care of business and mediate disputes but I have no proof. I have a new idea that what they don’t want is bad press, so now that that’s done. Bye Bye!

I am also reinvited to attend a REIN event so I’ll let you know when that is happening I am supposed to hear back after September 7th.

Landlord News

I found an interesting piece of news a few days ago which led me on a bit of a quest. It’s about an Eviction in Rosemere. Basically a family doesn’t pay the rent and tells the landlord they’re moving. The day they are supposed to move, the landlord comes in packs their stuff in a trailer and changes the locks. I’m not sure if it takes as long as Ontario to evict someone but in Ontario the landlord would have saved himself a couple months of rent at least.

Guerilla Landlords

This story reminded me of several landlords I had known who had taken matters into their own hands with non paying tenants. One removed the front window and threw all the tenant’s stuff out on the front lawn, then put the window back and changed the locks. Another landlord had the habit of bringing his big brother with him to serve notices and advise tenants that should they not pay they should definitely move on by the end of the month.  He and his big brother didn’t believe in the Landlord & Tenant board and would take whatever measures were necessary to ensure that they never went there. I know the tenant in question took them very seriously.

Horrible Tenant

This also reminded me of a landlord who contacted me about a tenant who was taking him to Divisional Court. It appears that she also bounced first and last rent check (Never do this… Cash, Money Order, Certified Check) so he changed the lock while she was out. She called the Municipal Affairs and Housing and they convinced him to let her back in. Six month’s later with not a penny of rent and this con artist threatening his wife, he regretted not just taking the fine.

I too locked a tenant out of his unit before after he caused a flood the first day he moved in to our building. I wrote a story about it called a So You Think You Can Landlord – A Tenant From Hell Story. He wasn’t officially a tenant – legally speaking, so I knew I was not going to get sued.

Ontario Evictions

Evictions are expensive, Ontario landlords will lose about 4 months rent from start to finish on a standard eviction. If you add a review or a Divisional Court Appeal and you’re looking at 6 to 12 months. If you go to the Municipal Affairs and Housing site you’ll find that the fine is $25,000 for individuals.

So then I went to the Landlord & Tenant Board website and looked at redacted orders for tenant rights to find out how much the fines actually were for locking tenants out. I did not look at all the redacted orders but the biggest fine I found was $1000 for locking a tenant out.

Tenants Have Problems Too

I also found this little gem in case you thought all landlords were blameless angels. I was just picturing the scene of this case at the Landlord & Tenant Board. I won’t spoil the surprise for you but there is a cat and a BB gun. Then look at the fine.

So basically if you’re a good tenant with a crappy landlord that doesn’t take care of his place, you’re out of luck. If you’re a decent landlord with a deadbeat tenant, you’re out of luck too. If justice existed we could match these pairs up for a marriage made in hell. They deserve each other.

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9 Comments so far ↓

  • QD

    I’m not sure what you expect REIN to do? They seem to me to be mostly an educational organization not the real estate investor police or some sort of professionally licensed organization. Maybe point your friend to a good lawyer?

    • Rachelle

      I didn’t really expect any help or help offers from REIN and you are right that they are not the police. What I do expect is that when people of all kinds offer to help that they follow through. They did not have to offer and I was very grateful that they did, thinking that they might have some additional resources to add to the problem.

      I also do not have to help but I am doing so. This lady is in severe distress with 80% of her salary going to service her debt. She makes about 12$ per hour. There’s no way she can pay a lawyer.

  • lonelylimey

    It’s a shame because REIN got what they wanted – for you to pump them up. Sadly, that’s twice now that you’ve jumped the gun and wrote before checking things out properly.

    We’ve all been there and got the badge. Hat off to you for admitting to it.

    • Rachelle

      I am regularly wrong. I agree that I have indeed made the same mistake twice. I made the mistake of taking people at their word. It may seem a bit funny but I am exceedingly suspicious in my usual work environment of leasing properties, I have found the blogging community to be a much more open sharing kind of place. I have also learned how to edit blog posts in response to these kinds of requests. In the future any corrections will leave the original post intact with necessary amendments crossed out and additional words added in bold.

      My mission with this blog from the outset was to speak truthfully about real estate as I see it and the facts are that there is no way to live life without making mistakes of all kinds unless of course you never say or do anything substantial. I don’t care to be that person, I am not running for public office. 🙂

  • QD

    ehh – pump them up? How about not being made the blame for something that didn’t happen? How about not being libelous?

  • QD

    Don’t get me wrong? I’m sure you can find con artists and scammers in any other organization out there – professional and non-professional. As an investor, it is our job to ensure that you do the right amount of due diligence on any investment or investor that you partner with.

    I admire your blogging intentions of honesty. It hearkens back to the days of journalistic integrity.

  • lonelylimey

    Not blaming the author for anything other than what she has already acknowledged.

    “I have crossed out all references to nice stuff REIN offered …..”

    “I’d hate to have people be mislead into thinking REIN is some kind of altruistic organization when I have no idea how they actually are except for their online forum. ”

    I am in total agreement with her that mistakes happen and I once again, commend her for her candor.

    • Rachelle

      I am now reinvited so I’m happy about that… and I also got a Thank you. So QD I’ll let you know when I’m going there! I like getting to places because of my blogging. It makes me feel like I won something fantastic. Maybe I’ll get some cookies 😉

  • Money Smarts Blog

    Thanks for the interesting post on saving taxes.

    Now I know who Jonathan Swift is. 🙂

    Mike