So you want to be a landlord? This Brampton family spent 11 months trying to evict tenant who owes $42K in back rent, $5K in unpaid utilities — they want the ‘broken system' to change

They rented their unit to Deeqa Rafle in 2020, but in 2021, Singh approached Ontario’s Landlord and Tenant Board for permission to evict her.

For the first few months after she moved in, Rafle paid her rent regularly. As time progressed, however, month would pass with no rent payments, resulting in Rafle racking up $42,000 in back rent, plus another $5,000 in utilities.

What was purchased as an investment for retirement for the Singhs, instead turned into a stressful and costly lesson, leading to Singh to call the system 'broken'. If the stress of being a landlord doesn't appeal to you, here are three alternative ways to invest in real estate.

‘The system is so broken’

Tenants facing eviction can appeal decisions like this one, but regardless of whether or not an appeal is filed, landlords like the Singhs have to get the Sheriff, or Court Enforcement Office, to evict the tenant.

An extreme case of a landlord-tenant situation gone wrong would be adverse possession, commonly referred to as ‘squatters’ rights,’ when a person can claim occupied land that is owned by another person.

Singh expressed frustration over trying to evict Rafle, telling Global News: “The system is so broken.”

He isn’t alone in his frustration. Tens of thousands of Ontarians have been experiencing long delays at the Landlord and Tenant Board, according to Ombudsman Paul Dubé.

Dubé shared the following from his investigative report with Global News: “... the Board is fundamentally failing in its role of providing swift justice to those seeking resolution of residential landlord and tenant issues. In doing so, it is denying justice to a significant segment of Ontarians.”

The report includes over 60 recommendations for improving the function of the board.

For Singh, this negative experience left him saying: “I am aware of the housing crisis in the country but if people are here to abuse the law…I’m not a babysitter, I can’t help you.”

Know your options

If you want to rent out your property, get a firm understanding of tenant and landlord rights.

For example, tenants are given tips, including not to move out immediately when served an eviction notice and to document all relevant interactions with their landlord.

On the other hand, landlords have their own list of responsibilities, such as rent increase guidelines and timelines for maintenance and repairs, as outlined by The Residential Tenancies Act.

Before you begin renting out a property, know your rights and responsibilities as a landlord to mitigate the risk your tenants will bring a case against you.

Real estate investing alternatives

If renting a property seems like a headache-in-the-making, you can still invest in real estate without becoming a landlord.

For example, you can consider a real estate investment trust (REIT). REITs are investment companies that own and operate income-producing properties like malls and office buildings. The REITs then distribute the net income to unitholders, making this an attractive way to grow your portfolio without taking big risks. Instead of owning one property, REITs also allow you to diversify your investment across many properties and types of real estate.