As we enter the beginning of another turbulent month in the COVID-19 pandemic, below is critical information that many property owners, such as ourselves, must be aware of to protect our interests and ensure that we all make it through this in once piece:
1. Remember that everyone is going through difficult times right now, not just us landlords. People are scared, many have lost their jobs. There has been conflicting information from the media and government has done a number on creating fear and uncertainty on what people should and should not do. It is our job as rental housing providers to give our tenants accurate information and help guide them through this crisis.
2. The temporary shutdown of the LTB has made non-payment of rent hearings not feasible for the time being. The LTB cannot keep its doors closed forever but anticipate major backlogs when the doors do open. Unfortunately this system is broken beyond belief.
3. The fact remains that rent is due as per your lease agreements, and tenants may need to be made clear of what information is true and what is false.
4. Remind your tenants that similarly to mortgages, no one is getting anything out of this for free. Mortgage deferrals actually tack on additional interest charges on top of what you would have had to pay in the first place. For rental delinquencies these will have to be paid at some point in time regardless, so if tenants can pay now they should be doing so.
5. It is advised that, before you speak to any of your tenants, revisit their original rental applications and verify where your tenant’s income sources are so that you can be fully prepared for the conversation.
6. If you have been in communication with a tenant and they have indicated that they are on reduced hours have been laid off and will be having difficulty paying rent, then the best course of action is to listen to them and suggest working out a payment plan. The intention here would be to lighten the load of the rent due once their funds do become available.
7. Provide your tenants with different support resources that have become available to them. This could be directions on how to obtain Employment Insurance or Emergency funding that has become available as support for Canadians.
8. Ideally there is common ground between you and your tenants and a plan can be developed. The best way to obtain this is through communication, empathy and understanding. At the same time you should be looking out for your own best interests and, if none or only partial rent is paid, PROCEED WITH AN N4! When sending the N4 (if the situation is amicable between you and your tenant) remind them that your intentions are not to evict them, but because of the nature of the LTB situation you need to remain pro-active and proceed as you would under any other circumstance.
10. On Facebook visit GHAIN (The Greater Hamilton Area Investors Network) to become part of our community where you can ask questions and get help. Also through Facebook look to join the Ontario Landlords Watch private member group that is full of great resources and information about what landlords can be doing during this pandemic.
These are difficult times and the road ahead is uncertain. I wish you the best and, above all, hope that you and your loved ones remain healthy and safe. As always, please don't hesitate to get in touch if you've got any questions.
