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Landlord Faces $30,000 Loss as Tenant Refuses to Pay Rent Amid Landlord and Tenant Board Delays

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Rajan Kanwar, a Brampton landlord, is grappling with financial distress, accumulating losses exceeding $30,000 due to a tenant’s refusal to pay rent or vacate the property. Despite efforts to seek eviction since May, Kanwar’s struggles persist, exacerbated by delays within Ontario’s Landlord and Tenant Board (LTB), leaving him emotionally drained.

Tenant’s Non-Payment Woes

Since May, the tenant has reportedly made minimal or no rent payments, compelling Kanwar to cover the substantial $9,500 monthly mortgage expenses on the property. This financial strain is compounded by an additional $7,500 monthly mortgage on Kanwar’s family home. The outstanding amount includes unpaid rent and utility bills

LTB Applications and Eviction Challenges

Kanwar filed two applications with the LTB, seeking eviction and recovery of losses. The N11 application, requesting eviction based on the tenant’s agreement to leave voluntarily, received a ruling last month, setting the departure date for February 2024. However, Kanwar remains skeptical of the tenant’s commitment, given past reversals. The second application, an N4 for eviction due to non-payment of rent, filed seven months ago, is yet to be heard.

LTB Response and Backlog Issues

The LTB, acknowledging the eviction order based on the N11 application, has not commented on the pending N4 application. The board’s backlog, reaching 53,000 cases in May 2023, reflects a significant challenge. Despite claimed improvements, landlords, like Kanwar, express frustration at prolonged timelines, fearing the loss of their properties.

Tenant’s Financial Struggles and Legal Maneuvers

The tenant’s financial struggles emerged in December 2021, leading to sporadic rent payments and utility arrears. Despite a signed N11 agreement to vacate, the tenant later contested its authenticity, complicating the resolution process. The postponement of the N4 hearing, due to an overwhelming document submission by the tenant’s representative, further prolongs the uncertainty for Kanwar.

Landlord-Tenant Communication and Legal Advice

Experts recommend open communication between landlords and tenants to negotiate voluntary departures.

Seeking legal advice is also advised to navigate the complexities of the eviction process. Self-representation by landlords, although cost-effective, may lead to errors and case dismissals, emphasizing the value of professional legal guidance.

Slim Chances of Repayment

While Kanwar hopes for reimbursement through an LTB order, legal professionals caution that the chances of actual repayment are “slim to none.” The protracted legal proceedings and financial strain underscore the challenges landlords face in reclaiming their dues and properties amid the existing system’s limitations.

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