How do you end a tenancy due to non-payment of rent?

Ontario has many rules governing the relationship between Landlord and Tenant, This includes the right of a Landlord to eviction or to end a tenancy. This is where the N4 form comes in. The N4 form is a formal way to end a tenancy early due to non-payment of rent. It is one of the most commonly used forms by landlords in Ontario, and that is largely because it is the backbone of what you need to serve when the tenant doesn’t pay rent and if you’re looking to terminate the tenancy as a result. However, if you’re interested in collecting the rent but do not want to terminate the tenancy, you would need to look into the L9 form.

Understanding the N4 Form

The N4 form is specifically used to end a tenancy when a tenant does not pay the rent. It’s not complex to fill out, but accuracy is key. Errors in the form can lead to the dismissal of your case if it progresses to the Landlord and Tenant Board (LTB). It’s essential to follow the instructions on the form carefully to ensure you’re using it correctly.

You should serve the N4 the day after rent is due and unpaid, typically the second of the month if rent is due on the first. Remember, if you are serving the notice by mail, add an extra five days to ensure compliance with notification requirements.

How do you complete the form?

Make sure to accurately fill out your name and the tenant’s name per all identifications and the lease agreement.

You must fill out your tenants name, landlord name and rental address at the top. Also, be sure to include ALL tenant names as indicated if there are more than one tenant.

The termination date on the N4 must align with the rent cycle specified in the lease. If rent is paid monthly, the notice period is typically 14 days, plus an additional five days for mail delivery.

Follow-up Actions

The L1 Application

Following the N4, you’ll need to file an L1 application form if you wish to evict the tenant for non-payment of rent and collect owed rent. The filing fee for the L1 is currently $201.

Common Mistakes to Avoid

When detailing amounts owed in the N4 form, only include overdue rent. Do not add charges for other responsibilities like lawn maintenance, snow removal, parking, or other amenities, as these are not covered under this form.

Calculation Section Tips

If the tenant owes more than three months of rent, use the first row in the calculations section to sum up the earlier overdue amounts. The subsequent rows should detail the most recent two months of unpaid rent. It’s crucial to note which months the tenant actually missed payments to accurately report overdue rent.

Serving the Notice

Never tape the notice to the tenant’s door as it may not be legally recognized. Opt for hand delivery or mail. If the tenant pays the rent within the notice period, the N4 notice becomes void. If payment issues persist, consider using an N8 form for continuous late payments.

Steps to Take Post-N4

Serve the N4 correctly, either by hand or mail, adding five days if necessary.

Wait to see if the tenant pays the rent within the allotted period. If they do, the N4 is void.

If the tenant fails to pay, file the L1 application with the LTB. The earliest you can file is indicated on the N4 form.

Hearing Preparation

If the issue escalates to a hearing, be prepared. If you cannot attend, you may want to hire a paralegal. Ensure all evidence is submitted in advance and double-check your forms for accuracy.

At the Hearing

If the tenant pays at the hearing or agrees to a payment plan, ensure there’s a contingency if they fail to comply. You can request an immediate eviction order if they don’t meet their obligations.

Always advocate for fair treatment and understand your rights as a landlord. Following these steps should help manage tenant issues effectively.

For more information on landlord and tenant issues, watch our related videos here. For more help, feel free to comment below or check out additional resources on our YouTube channel.

Start Your Investing Journey

Are you interested in real estate investing? Are you struggling with the high barriers to entry to the Canadian real estate market? Join us now and see how we can help you acquire your first US real estate deal in the next 45 days!

Fill out the application form below and take the first step towards expanding your investment portfolio across the border.