Navigating Tenant Abandonment in Ontario: A Landlord’s Guide
Abandonment of a rental unit in Ontario can leave landlords in a serious bind. It can lead to financial losses and legal complications, but landlords have recourse. By understanding the necessary steps and acting accordingly, they can mitigate damages and protect their interests.
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Determining Abandonment: More Than Just an Empty Unit
While an empty unit might be a first sign, it doesn’t automatically mean abandonment. A tenant could be on vacation, hospitalized, or dealing with a personal emergency. Here are some other signs that you may be dealing with an abandoned unit:
- Unpaid Rent: While a single missed payment might not indicate abandonment, a pattern of unpaid rent, especially when combined with other signs, is a strong indicator. Landlords should keep meticulous records of rent payments and any arrears. This documentation will be crucial if legal action is necessary.
- Utilities Disconnected: If the rental unit’s utilities (electricity, water, gas) have been disconnected due to non-payment, it suggests the tenant no longer occupies the property. Landlords can check with utility companies to confirm the disconnection and the reason behind it.
- Personal Belongings Left Behind: It’s common for tenants to leave some items behind when they move, but a significant reduction or complete absence of personal belongings can signal abandonment. This includes furniture, clothing, and other essential items. If only a few things remain, but important documents and valuables are gone, this is a strong indication of abandonment.
- No Communication: One of the clearest signs of abandonment is when a tenant ceases all communication with the landlord. If they don’t respond to phone calls, emails, text messages, or in-person attempts to contact them, and there is no forwarding address provided, it strongly suggests they have no intention of returning to the unit.
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Documenting the Evidence: Building a Strong Case
Thorough documentation is essential to protect your rights. This includes:
- Photographs and Videos: Take detailed photos and videos of the unit’s condition, focusing on any signs of abandonment like uncollected mail, spoiled food, or removed belongings.
- Written Records: Keep a record of all communication attempts with the tenant, including dates, times, and methods used.
- Witness Statements: If possible, have a witness present when inspecting the unit and documenting the situation.
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Serving Notice of Termination: A Legal Requirement
Even if abandonment seems clear, landlords must still follow legal procedures. This involves serving the tenant with a Notice of Termination, or more specifically an Application to End a Tenancy and Evict a Tenant or Collect Money” (L2 form).
- Content of the Notice: The notice must be in writing and clearly state the date on which the tenancy is terminated. It should also cite the reasons for termination, referencing the evidence of abandonment and/or unpaid rent.
- Service of the Notice: The notice must be served in accordance with the Residential Tenancies Act. This typically involves delivering it in person, leaving it at the rental unit, or sending it by registered mail, all of which can be an issue in the event of abandonment. Contact a paralegal or other legal professional to find out what the best mode of service is, the Landlord and Tenant Board does not offer legal advice.
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Recovering Losses: Filing a Claim with the Landlord and Tenant Board
This is what to expect once you’ve filed notice.
- Evidence: The landlord must provide evidence of the abandonment and the resulting losses.
- Hearing: The Board will hold a hearing to determine whether the tenant is liable for compensation.
- After you win: You will need a copy of the LTB judgement to file with small claims court to recover the amount you were awarded.
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Handling Tenant’s Belongings: Storage and Disposal
Landlords must handle the tenant’s belongings with care. This includes:
- Inventory: Create a detailed inventory of all items left behind, preferably with photographs.
- Storage: Store the belongings in a safe and secure location.
- Disposal: If the tenant doesn’t claim their belongings within a reasonable time (as specified by the Residential Tenancies Act), the landlord can dispose of them. This must be done in a lawful manner, and valuable items might need to be sold through a public auction.
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Mitigating Damages: Re-Renting the Unit
Once the whole eviction process is complete, you will want to take reasonable steps to find a new tenant for the abandoned unit as soon as possible. This could involve:
- Advertising the Unit: List the unit for rent on appropriate platforms and through real estate agents.
- Showing the Unit: Make the unit available for viewings by prospective tenants.
- Setting Rent: Ensure the rent is in line with market rates for similar units in the area.
While tenant abandonment can be a challenging situation, landlords have legal avenues to protect themselves through the Landlord and Tenant Board, even though it can take some time – generally 3-6 months. It’s always advisable to consult with a legal professional, even if it is just a paralegal, for guidance specific to individual circumstances.
If you’re faced with this situation, give us a call. We can act as your property manager and do all of the above steps, and we have ways of screening tenants so that you can keep situations like this off your plate in the future.