Tenants live rent free for three months before eviction enforced
To view the Social Media Release, click here: http://smr.newswire.ca/en/federation-of-rental-housing-providers-of-ontario/ontarios-landlords-want-rent-dispute-process-modernized
TORONTO, Feb. 23 /CNW/ - Ontario's rental property owners say the rent
dispute process is old and broken - owners spend thousands of dollars
providing free housing to tenants who have not paid their rent. They
are asking the provincial government to modernize the rent dispute
process, bringing it in line with the majority of other Canadian
provinces. Their challenges are detailed in a report released today by the Federation of Rental-housing Providers of Ontario
"No other business is required to provide goods or services without
payment, yet landlords must by law allow tenants to remain in their
apartments for months with faint hope of recovering the cost," said
Vince Brescia, FRPO President and CEO. "This situation is patently
absurd. It places a huge financial burden on landlords, particularly
small ones who must find ways of making up these expenses from rents
charged to the majority of tenants who do meet their payments."
Ontario has approximately 1.3 million rental households, representing
just 29 per cent of the population. If tenants do not pay their rent on
time, landlords in Ontario are required to go through a lengthy
dispute-resolution process which will result in eviction only if
payment is not made. Last year in Ontario, about 4.5% of tenants
required their landlords to utilize this process. About two thirds of
tenants who fall in to arrears do manage to make the rent payment,
clear up their debt and retain their occupancy.
But 1.5 per cent of tenants ultimately leave without paying their rent.
They take advantage of a lengthy process and remain in their units
until it runs its course and they leave, or are removed. During this
time, no rent is paid.
"With a typical monthly rent of $1,000 per month, that is a $3,000
subsidy in lost rent alone, excluding legal and application fees
associated with the non-payment process," Brescia said. "This is a
large cost for one landlord to incur with respect to one unit. In the
case of a small landlord, it is devastating. This process, including
legal fees, costs the landlord anywhere between $5,200 and $6,500."
FRPO is asking the provincial government to:
reduce the initial removal notification period from the current 14 days
to five days
require hearings to take place in five days instead of the current 29
eliminate the 11 day delay to file for removal with the sheriff once the
Landlord & Tenant Board approves termination
allow private bailiffs to enforce the eviction instead of waiting 6-8
weeks for the sheriff to do it.
"The hearing delay in Ontario alone is the longest in any Canadian
jurisdiction, longer than the entire process in four Canadian
provinces," Brescia added. "Surely the country's most populous province
with the most rental units can come up with a modern, efficient system
to resolve rent disputes that is both fair to the tenants, and, the
landlords. What we have now is a broken system."
Please click here to access the Report and Summary.
/NOTE TO EDITORS: Media Assets accompanying this story are available as
Video : http://www.newswire.ca/en/releases/mmnr/smr/Vince_Brescia_FRPO_PresidentXs_Message.flv
SOURCE Federation of Rental-housing Providers of Ontario
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