Landlords Beware of “Tenant Friendly” Board

A few weeks ago we looked at the subject of evicting a dreaded Tenant From Hell. It’s unfortunate, but many landlords find themselves in the horrible predicament of signing a deal with a tenant who at first seems like a model example, but later turns out to be a nightmare. Many landlords have understandably labeled these individuals as “professional tenants”. But do people like this really exist? Are they really that bad? Or are the landlords simply looking at the situations through a distorted lens? While the landlord/tenant relationship is very complex, and points can be argued on either side of the fence, it is true that these “professional tenants” exist…and they milk their landlords and milk the system for all it’s worth. How about an example? Funny you should ask.

Just this past September there was an article published on CBC News that highlighted precisely such a case. Robin Ennis, a Toronto landlord claimed she had been conned by a “professional tenant” who had been living in her high end Yorkville home since July of this year, and hasn’t paid a cent in rent. The story reads like a landlord horror novel, and is unfortunately 100% real. The tenant in question is a 62 year old man named James Regan. And James has a very thorough understanding of the Landlord and Tenant Boards rules and regulations. The matter is currently in the process of being heard by the board, but this is 4 months into the rental agreement, and Robin hasn’t seen a single penny of rent. James on the other hand, is not attending his first rodeo; he had a similar dispute at the board earlier this year relating to another property that he was occupying. The board ordered his eviction, but only after months of unpaid rent: “Regan appealed that eviction and lost in Ontario Superior Court, a process that took eight months, during which he lived rent-free in the condo near Old Mill Road and Bloor Street West.”.

Even at the time of eviction (a second eviction that finally was enforced on June 29^th2016), he never paid any of the money he owed. Rent was $3200 a month, and James had compiled a whopping $25, 000 in back rent that court documents show he never paid. James was too busy setting his sights on his next victim; Robin.

Robin met with James on June 30^th 2016, the very next day after his eviction. Robin has a second-floor apartment in her home on Avenue Road, and James showed up well dressed, well groomed and polite. Now, Robin may have jumped the gun a little, or perhaps she was simply fooled by James’ façade.  Robin and James signed an agreement prior to Robin doing her due diligence. She had intended to, but she took James’ word as he promised to pay first and last month’s rent, provide proof of insurance, as well as credit and criminal background checks. Robin’s mistake was not requesting these documents prior to signing the agreement.

The very next day, Friday July 1^st, James showed up unannounced with the perfect story to get the key. He claimed that he had valuable art that was in urgent need of storage. Robin’s second mistake was entrusting James, who she hardly knew, and providing the keys. Needless to say, James never gave them back. By July 2^nd, he had already completed his move into the apartment. Robin, at this point, confronted James for the first and last month’s rent, at which point James reportedly showed his true colors.

It wasn’t until Sept 8^th that Robin had finally received her first hearing by the board. However, the matter had to be pushed back as James claimed he never received the proper documentation in the mail; he knew very well how to play the system by claiming he was never served with the notice of the hearing.  The next hearing is in November, 5 months after James initially moved into the apartment.

Once the case is finally heard, the first step is often for the board to order payment of rent, but tenants typically default. Months can pass before the board finally orders an eviction notice, which can also be immediately appealed. Tenants cannot legally be evicted until an appeal in the decision is made. By the time all is said and done, it can be 8-9 months into the agreement with thousands upon thousands of dollars in unpaid rent that may or may not ever be paid.

To read the entire story, click here.

So there you have it. Professional tenants exist, and they will make your landlord experience a living hell. Your best bet is to follow a rigid screening process with zero room for exceptions. Better yet, work with a professional management company, like CMG Toronto, who are privy to these types of tenants, and understand the importance of the screening process.