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Helping you understand the rental world in Durham Region
My tenants are paying way below market rent.
Can I evict them?
August 2023 – The cost of a one bedroom apartment in Oshawa, Whitby and Clarington has jumped 14.6% in one year.
That figure comes from the national rent report, compiled by Urbanation and Rentals.ca, which gather data from across the country to come up with the numbers.
Can you terminate a lease in your rental property?
The Residential Tenancies Act (RTA) is clear in defining the reasons you can evict a tenant and the fact that your tenant is paying below market rent isn’t one of them.
In the current rental market in Durham Region where rents and interest rates have skyrocketed, your hands are tied, literally. Eviction or a large increase in rent is not an option.
If your tenant has not caused any reason for eviction such as; late or non payment of the rent or not keeping the unit habitable etc., the RTA states that you may initiate an eviction if, at the end of the current lease period:
- The Landlord requires the unit for immediate family. 60 days notice and one month’s rent in compensation to the tenant is required.
- The Landlord plans to demolish the unit or complete extensive renovations where the tenant can not reside in the unit while the renovations are being completed. 120 Days notice is required. You. must also offer the unit back to this tenant.
More RTA rules
The RTA also requires the Landlord to offer the renovated unit back to the original tenant, determines the amount of compensation you must provide when taking over the unit and how to deliver the notice officially to your tenant. No, a text or email is not it!
Further, there are rules regarding whether you can increase the rent on the renovated unit and that the tenant can now terminate the lease after being notified with 10 days notice. And wait, there’s more…
N11 or N12
Which one do you use?
N11 is used when:
You and your tenant mutually agree that they will vacate the unit (home). Once signed, the tenant is required to move out on the agreed to date and remove all their belongings.
N12 is used when:
You or your immediate family (You or your spouse, your children or your parents will be taking over the unit.
You will be required to provide compensation equal to one month’s rent prior to the end of the tenancy.
The termination date the landlord sets out in this notice must be at least 60 days after the landlord gives you this notice. Also, the termination date must be the last day of the rental period. For example, if you pay rent on the first of each month, the termination date must be the last day of a month. Finally, if the tenancy is for a fixed term the termination date cannot be earlier than the last day of the fixed term. For example, if you signed a one-year lease, the termination date cannot be earlier than the last day of the one-year period set out in the lease.
What if I want to sell my house?
You could provide an N12 Notice on behalf of the buyers, prior to closing. You must have a FIRM Agreement of Purchase and Sale and the buyers must indicate that they are moving in.
Ensure you have given enough time in your Agreement of Purchase and Sale to allow for the proper notice to the tenants.
What if my tenants don't move out when they agreed to?
This is a real problem that many landlords face in todays market. Rents have increased so much that tenants are not able to quickly find something and move out. If your Agreement of Purchase and Sale provided Vacant Possession of the unit and the tenant has not moved out before closing, you are on the hook. The deal will not close and you will be getting yourself a lawyer.
The tenants have a right to a hearing with the LTB and these hearings are currently being scheduled up to 8 months out. To top it off, if the paperwork was not handled properly, the case will be thrown out and the landlord will be starting from scratch.
My recommendation is to always sell a vacant property if possible.
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