Legal loopholes allow landlords to push out long-term tenants

By Paul Russell, LegalMatters Staff • The low supply of Toronto rental units not only makes affordable accommodations difficult to find, but many existing tenants paying modest rents are being told they must move out by landlords claiming the units are going to be renovated or are needed for family members, says Toronto paralegal Joyann Oliver.

“This is a very big problem since the rental market is incredibly hot across the city,” says Oliver, co-founder of JNR Legal Services. “Landlords see the market and see the dollar signs, and they know that if they can get a long-term tenant to move, they will be able to increase the rent by up to $1,000 a month.”

She says there are two common ways for the landlord will attempt to end a tenancy, the first being to serve the tenant an N12 notice and subsequently file an L2 (Application to End a Tenancy and Evict a Tenant) with the Landlord and Tenant Board (LTB). An N12 will notify the tenant an immediate family member of the landlord requires the unit, and the person must move.

“All landlords have to do is claim that they need the unit for themselves or immediate family members such as a parent, spouse or child, or someone who provides care to any of these persons,” Oliver tells LegalMattersCanada.ca. “The family member moving in also has to sign an affidavit or declaration, verifying they intend to stay there for at least 12 months.”

The termination date set out in this notice must be at least 60 days after the landlord gives the tenant the notice, she says, and the tenant must be given cash compensation equal to one month’s rent.

Renovation or demolition

The second common way to displace a tenant is to apply to the LTB based on an N13 notice, Oliver says, issued when a rental unit is to be totally renovated or even demolished.

Affected tenants must be given 120 days’ notice, she says, and two months of rental compensation. In addition, the person has the right to move back into the unit (at the same rent) after the renovation by providing the landlord with written confirmation and their new address.

“The problem with both of these notices is that they are misused by landlords who want to get existing tenants out, and then relist at much higher prices,” says Oliver. “Landlords realize former tenants have probably signed 12-month lease agreements elsewhere, and will not be able to move back in at the old rental rate, so they can now rent the property for more money,” she says.

If a tenant sees their unit is up for rent after they were forced out, Oliver says they can bring an application to the LTB, alleging bad faith termination on the part of the landlord.

If the board agrees, it can fine landlords and order them to compensate tenants for the difference in the two rents for a 12-month period she says, as well as possibly paying for moving expenses.

In response to the numerous complaints from about the misuse of the N12 and N13 notices, Oliver says the government has introduced the Protecting Tenants and Strengthening Community Housing Act. 

Once enacted, the act will require landlords to tell the LTB if they have issued these notices before, to help identify those who may be breaking the law, she says.

Seek advice on options

Penalties would increase $25,000 to $50,000 for individuals and from $100,000 to $250,000 for corporations convicted of an offence under the act, Oliver says

If landlords use an N13 notice to evict tenants but don’t give them the opportunity to move back in at the same rent before offering it to others the act would allow tenants two years to file a claim and possibly receive compensation equal to a full year’s rent.

Once tenants are given N12 or N13 notices, Oliver recommends they seek a paralegal’s assistance.

“We can show them how to properly prepare their application to present to the board, to ensure they get the justice they deserve if the landlord ended the tenancy in bad faith,” she says. “A paralegal can make sure they are fairly compensated for what happened.”