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

‘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.”

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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.

Another option for real estate investment is real estate crowdfunding. This is an option that allows you to pool your money with a group of investors to participate in larger deals than what you could manage solo, and your profit is based on what you contribute. The Canadian Securities Administration (CSA) oversees real estate crowdfunding platforms to ensure they comply with securities laws.

As for Singh, he’ll be selling the apartment and vows never to rent out property again.

Sources

1. Ombudsman Ontario: Ombudsman calls for legislative change, overhaul of “moribund” Landlord and Tenant Board (May 4, 2023)

2. Tribunals Ontario: Tenant Rights: Interpretation Guideline 6

3. Tribunals Ontario: Tenant Rights: Interpretation Guideline 6

4. Tribunals Ontario: Renting in Ontario (July 4, 2023)