Nathan Levinson explains Impact of Evictions on Landlords and Tenants

Evictions are a pivotal aspect of property management that can significantly affect both landlords and tenants. Nathan Levinson, the President and Founder of Royal York Property Management, explains in detail the importance of understanding the eviction process and its impact for both landlords and tenants.

Royal York Property Management is a property management company that has been operating in Ontario for over 15 years. With a portfolio of more than 22,000 properties and with real estate assets under control valued at over $10.1B, Royal York Property Management is a real estate rental and leasing company that guarantees rental income.

In this article, Nathan Levinson will examine the eviction process in Canada, by discussing its impact on all parties involved and shedding light on legal considerations and potential outcomes. To fully grasp how evictions affect landlords and tenants, we will first examine the procedures and steps involved in the eviction process in Canada.

The Eviction Process in Canada

The formal eviction process is a structured procedure that ensures legal compliance and fairness. Here’s an overview of the eviction process:

1. Notice of Intent to Evict: The process begins when a landlord provides a tenant with a notice, detailing the reasons for the potential eviction, such as non-payment of rent or breach of lease terms.

2. Filing an Eviction Notice: If the issues are not resolved, the landlord may file an eviction notice with the court. This document formally starts the legal process and sets the stage for court intervention.

3. Court Proceedings: Both parties present their case in a court hearing. Tenants have the opportunity to contest the eviction if they believe it is unjustified.

4. Court Judgment: The court decides based on the evidence and legal statutes whether the eviction should proceed.

5. Execution of Judgment: If the court rules in favor of the landlord, the eviction order is executed, and the tenant is required to vacate the property, sometimes with the assistance of law enforcement.
   

What happens if you get evicted in Canada?

An eviction can be a stressful experience that often leads to financial difficulties, emotional stress, and problems finding future housing for tenants. Having an eviction on one's record can greatly affect a tenant’s ability to secure new rentals and might also impact their credit score.

A credit score is a critical factor landlords consider when evaluating potential tenants. Tenants with lower credit scores may find it difficult to rent their preferred properties, whereas those with a higher credit score generally face fewer obstacles in securing housing.

What are the common reasons for eviction?

In Ontario, landlords have several legal grounds to evict tenants, and understanding these is essential for both parties. Here are some of the primary reasons why a tenant might face eviction:

Regularly being late or not paying rent

Not making rent payments on time is the most common reason for eviction. Legally speaking, landlords can start the eviction process if rent is not paid in full by the due date. As prompt payment is a contractual requirement, persistent delays might result in eviction even if the renter pays rent on time every time.

Taking Part in Illegal Activities

Eviction is justified by any illicit activity carried out within the rental property. This also applies to tenants who let other people commit crimes on the property.

Serious Property Damage

While some wear and tear is to be expected, a landlord has a legitimate justification to evict a tenant if there is significant damage that is the result of carelessness or willfulness.

Constant Disturbance

Tenants are required to respect the peaceful enjoyment of the property by other tenants and the landlord. Persistent disturbances can lead to eviction proceedings.

Landlord's Personal Use

Landlords can evict tenants if they need the unit for personal use, such as for themselves or immediate family members, or for someone who provides care to them. The law typically requires that the unit must then be occupied for at least one year.

Large-scale renovations or repairs

Building permits and unoccupied apartments are frequently needed for major repairs and renovations before work can be finished. A landlord has the right to evict a tenant from a rental property if this is the situation.

(There is, however, a crucial disclaimer. Tenants may return to the apartment when repairs and renovations are completed, provided they give written notice to the landlord before doing so.)

Demolition

If the landlord determines they wish to demolish the building or apartment, the tenant may be forced to leave.

How does eviction impact landlords?

The eviction process for landlords can be both time-consuming and financially draining. Legal fees, lost rent, and the cost of finding new tenants add to the financial burden."At Royal York Property Management, we carefully select tenants by conducting thorough tenant screenings to minimize the risk of evictions," says Nathan Levinson.

The reason why Royal York Property Management is so careful on who they place into the landlord's property is because, unlike a real estate agent or any other property management company, Royal York Property Management is prepared to guarantee the rent. Meaning, if the tenant defaults on the rental payment at any point during the term, Royal York Property Management will not just continue to pay the rent but, also cover any associated legal costs, court and sheriff fees, and replace your tenant, free of charge! 

Rental Guarantee is an add-on service to Royal York's property management service, which includes 24/7 customer service, taking care of all tenant correspondence, as well as any legal notices such as an N1 or N10 form for rental increases, an N9 or N11 to serve the tenant and terminate the tenancy or even an N12 form where you have sold the property and a homeowner or a family relative would like to occupy it.

Legal frameworks and considerations regarding the eviction process

In Canada, the laws surrounding evictions are structured to ensure fairness for both landlords and tenants. Landlords are required to adhere to clearly defined legal steps before they can remove a tenant. These steps are designed to prevent arbitrary evictions and ensure that landlords have legitimate grounds for taking action.

The framework governing such instances like evictions is the Residential Tenancies Act. The Residential Tenancies Act (RTA) outlines the rights and responsibilities of both parties and sets the standard procedures for evictions, making the rules clear and accessible. It aims to balance the needs and rights of tenants with those of landlords, providing a fair process that supports stability in the overall rental market.

Understanding the eviction process in Canada is crucial for both landlords and tenants, as it ensures that disputes are handled professionally and within the bounds of the law, thereby minimizing the financial impact of evictions.

"As a property management company with over 15 years in the rental and leasing industry in Canada, we strive to prepare landlords for the complexities of the eviction process, while also educating tenants about their rights and the resources available to protect their housing stability". says Nathan Levinson. According to Nathan, this approach helps maintain fair and stable rental relationships between both parties.

For more information on Royal York Property Management and our Rental Guarantee service visit: royalyorkpropertymanagement.ca