Raj Salwan finds himself trapped in a worsening financial crisis. Each month, his debt deepens as he covers the costs of his condo, which is occupied by a non-paying tenant who refuses to leave.

Salwan’s tenant owes him over $34,000. To cope with the accumulating mortgage and utility expenses, Salwan had to take out a loan against his own home. The mental strain on his family is indescribable, he says.

Salwan is classified as a “small landlord” with just one rental property—a one-bedroom condo in Toronto that he bought as an investment for his retirement. The tenant paid rent for the first year, but payments ceased in February 2021.

However, it’s not just Salwan facing a crisis; it’s also the provincial tribunal meant to assist people in his situation.

A Backlog of Complaints

Ontario’s Landlord and Tenant Board (LTB), the sole tribunal handling disputes between landlords and tenants, has been grappling with a backlog spanning several years.

A May ombudsman report revealed that the LTB had accumulated over 38,000 unresolved cases, with nearly 90% of the complaints coming from landlords. The report deemed the board a “fundamental failure,” denying tens of thousands of Ontarians justice due to “excruciatingly long” delays.

Salwan filed a complaint in April 2021, receiving his first hearing date in February 2022, which was adjourned due to time constraints. His next hearing was in August 2023, but his case was dismissed due to a filing error, forcing him to restart the process.

The delays began before COVID-19, but the pandemic’s five-month moratorium on eviction hearings exacerbated the issue. Measures to protect tenants from eviction during the pandemic were implemented across Canada, contributing to increased wait times nationwide.

David Wachsmuth, an associate professor at McGill University, highlighted significant delays in British Columbia and Quebec. In Quebec, staffing at the province’s rental board decreased as demand skyrocketed.

Ontario’s problems stem partly from a lack of adjudicators and an overly complex system that leaves landlords and tenants feeling helpless.

The LTB claimed that some application wait times had improved by several months but is working to further reduce the backlog and support adjudicators by hiring new staff.

The Impact on Landlords and Tenants

The delays disproportionately affect small landlords, potentially leading to financial catastrophe if a tenant fails to pay for several months. In contrast, larger companies consider non-payment part of the cost of doing business.

For renters, the delays create turmoil in their lives, affecting housing conditions and rent increases. Long wait times for hearings worsen tenants’ living situations and their ability to address grievances.

Canada’s Housing Crisis

Canada is in the midst of a housing crisis characterized by low rental availability and an increase in short-term rentals. Small landlords are leaving the rental business due to the broken system, exacerbating the problem by shifting their properties to platforms like Airbnb, where they can seek police assistance with tenant issues.

In Toronto, the number of Airbnb-listed units increased by over 6,000 between January and August 2023, while publicly listed rental units decreased by about 46%, according to the Ontario Real Estate Association.

Solutions and the Way Forward

The ombudsman’s report proposed over 61 recommendations to address the issues, focusing on hiring new staff, simplifying the system, and providing support for adjudicators.

Although the LTB has not hired new staff yet, they have plans to do so. In the meantime, paralegals are navigating the complex system and helping clients. However, the system’s complexity often leads to application errors that result in dismissals.

As landlords and tenants await their turn in front of a judge, they are left with few alternatives. Salwan has sworn off becoming a landlord ever again, describing the experience as a “total nightmare.”