Missing Rent And Need to Know What To Do Next?
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In this FAQ Sage Living will review our procedures and recommendations when working with Tenants to collect outstanding rent.
Keep in mind Sage Living is able to collect over 80% of outstanding rent before the Suite Owner realizes their Tenant failed to pay rent on time!
Step 1 - Our Rent Collection Structure
Sage Living has purposely structured our rent collection process with a 1-month delay.
This means that the rent an Owner receives was collected 1-month prior.
Rent collected in September, is provided to Owners in October
Rent collected in October, is provided to Owners in November
Rent collected in November, is provided to Owners in December ….. and so on
In structuring our rent collection efforts with a 1-month delay, Sage Living is then afforded approximately 1-month to collect any outstanding rent amount on behalf of our Owners. This increases the Owner’s ability to continually receive rent each month uninterrupted.
But let’s explore what happens if we can’t collect rent on time
Step 2 - Our First Attempts
Our Collection Team takes action as soon as our office is aware of an outstanding rent amount. This will typically occur within the first few days of each month.
First
Our Collection Team will email the Tenant and their Guarantor, reminding them of the outstanding rent payment and asking to coordinate payment. We will include available payment options and resources the Tenant can use to pay the outstanding amount.
Second
If the rent is not recovered within the next 5-days of having sent the initial email, the Collection Team will then complete a series of phone calls to both the Tenant and the Tenant’s Guarantor outlining payment options.
Third
If the rent is not recovered within approximately 5-days of having called the Tenant, the Owner will then be notified of the outstanding rent.
Keep in mind that this is still approximately 2-weeks prior to when the Owner is expected to receive this outstanding rent as we offset the rent collection by 1-month.
Approximately 80% of collection cases are closed with full rent recovered before an Owners is notified. A majority of our Owners will receive rent without being aware of any rent collection complication.
Step 3 - Owner’s Collection Options & The Landlord And Tenant Board
If our collection attempts fail, and the outstanding rent not collected, the Sage Living Collection Team will contact the Owner and provide the Owner with two additional collection options made available through the Landlord and Tenant Board (LTB).
Option 1 - Eviction + Collection
This option is selected when the Owner would like to both attempt to evict the Tenant and collect the outstanding rent from the Tenant.
This option is not normally recommended by our office. If the Owner successfully evicts their Tenant, the Owner could then experience a period of time where their suite remains vacant. The Owner cannot rent the suite before the current Tenant is evicted and it is highly unlikely a new renter will be located to immediately occupy the vacant suite.
First
Sage Living will send a notice to the Tenant informing the Tenant of the Owner’s intention to evict the Tenant due to non payment of rent. The Tenant must be provided this notice and must be provided 2-weeks time to pay the outstanding rent amount and avoid eviction.
Second
If the rent is not collected within this 2-week period, the Owner can file with the LTB for an eviction hearing.
Third
During the LTB hearing the Owner may be rewarded with the ability to evict the Tenant and the Tenant required to pay the Owner the outstanding rent amount. Normally the Tenant is required to pay this amount within 11-days, but time may vary and is dependant on the hearing results.
Option 2 - Collection Without Eviction
This option is selected when the Owner would like to attempt the collection of outstanding rent without having to evict the Tenant.
First
The Owner will make an application to the LTB
Second
The Owner will then be provided with a scheduled hearing date from the LTB
Third
The Owner will participate within the hearing and may be rewarded with the ability to collect the outstanding rent from the Tenant. Normally the Tenant is required to pay this amount within 11-days, but time may vary and is dependant on the hearing results.
What To Expect When Filing Through The LTB
All Owners who would like to pursue rent collections through the Landlord and Tenant Board must be aware of two key items
One
There is a cost to file for a hearing with the LTB.
Filing fees are currently valued at $201, but the Owner if often rewarded the ability to be compensated for this amount by the Tenant during the hearing.
Owners should be prepared to front the cost of this filing fee.
Two
Sage Living can assist the Owner in preparing the appropriate LTB forms, but Sage Living cannot represent the Owner at the LTB hearing.
Sage Living can provide a recommendation to local legal professionals who are well trained and practice in Tenancy Law. Through our referral a Sage Living Owner will often be charged a a more affordable base rate of $125 for non complex hearings. Additional cost may be negotiated between the Owner and this legal representative should the hearing become more complex. Sage Living cannot assist in the negotiation of price with this third party legal representative on behalf of the Owner and the Owner is always able to use their own preferred legal representative.
CHANGES CAUSED BY COVID-19
All Owners must be aware of recent changes and policies now enforced by the Provincial Government due to COVID-19.
Change 1 - Substantial Delays With The Landlord And Tenant Board
Due to complications caused by COVID-19, and a higher than normal amount of LTB filings being made, hearing dates are significantly delayed.
It may take an Owner several months before they are notified of a hearing date for their filling.
Change 2 - Eviction Moratorium
An eviction moratorium is now in place. This means that no Owner can evict their Tenant at this time. The Owner can begin an eviction application, but they cannot enforce an eviction order until the moratorium is lifted. There is no estimate for when the moratorium will be lifted.
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