How to Legally Handle a Tenant’s Breach of Lease Agreement
In Ontario, landlords have a variety of legal rights when a tenant breaches a lease agreement. While it may be a difficult situation to face, it’s important to approach the issue carefully and methodically, as improper handling can lead to costly mistakes or even legal repercussions. Working with Morris Legal Services can help you protect your rights as a landlord.
Our firm will guide landlords through the necessary steps to manage a tenant’s breach of lease agreement while remaining compliant with Ontario’s residential tenancy laws. If you’re facing a breach of contract from a tenant in North York, Ontario, read on to take the right steps to handle this situation.
Identifying a Breach of Lease Agreement
The first step in handling a tenant's breach of lease agreement is recognizing when a breach has occurred. A lease agreement is a legally binding document that outlines the responsibilities of both the landlord and the tenant. Common breaches may include failure to pay rent on time, unauthorized pets, excessive damage to the rental property, or subletting without consent.
A breach of lease agreement can take many forms. For example, a tenant might not pay rent on time, causing financial strain on the landlord. Alternatively, a tenant may violate property maintenance requirements by causing damage or neglecting cleaning duties. In all cases, the breach of contract must be documented and confirmed before any legal action is taken.
Review the Lease Agreement
Before proceeding with any legal action, it’s critical to thoroughly review the lease agreement to understand what the tenant is obligated to do. This makes sure that the landlord has clear grounds for claiming that a breach of contract has occurred.
The lease will generally outline both the tenant’s and landlord’s duties, the duration of the lease, and the process for handling disputes or breaches.
If the tenant has violated a specific clause or condition of the lease, such as non-payment of rent or unauthorized occupancy, the landlord must verify that the tenant’s actions are, in fact, in violation of the terms outlined in the agreement. If there’s any uncertainty, it may be beneficial to seek legal counsel for clarification.
Document the Breach of Lease Agreement
Once a breach of contract has been confirmed, it’s essential to document the incident. Proper documentation provides legal protection and can serve as evidence in any future proceedings, whether before the Landlord and Tenant Board (LTB) or in court.
For example, if the breach is related to non-payment of rent, the landlord should keep thorough documentation, including:
Rent payment history and receipts
All correspondence with the tenant (such as emails, letters, or text messages)
Written notices (regarding overdue payments)
If the tenant has caused damage to the property, the landlord should take detailed notes of the damage, including photographs or videos, as well as any repair estimates or invoices. This documentation will help prove that the tenant breached the lease agreement and that the landlord acted within their rights to address the issue.
Issue a Written Notice of Breach
In Ontario, when a tenant breaches the lease agreement, the landlord is required to give written notice to the tenant. This notice serves as an official warning and provides the tenant with an opportunity to remedy the breach.
The type of notice and the time frame allowed for remedy depend on the specific breach. For example, if the breach is related to non-payment of rent, the landlord is generally required to issue a “Notice to Terminate for Non-Payment of Rent.” The tenant will have 14 days to pay the overdue rent or face eviction proceedings.
In cases of other breaches, such as damage to the property or unauthorized occupants, the landlord may issue a “Notice to Terminate for Cause,” which gives the tenant 20 days to resolve the issue, according to the Tribunals Ontario.
The notice must be delivered to the tenant in writing and should clearly outline the breach, the date the breach occurred, and the steps the tenant must take to fix the problem. The landlord should keep a copy of this notice for their records, as it may be needed in future proceedings.
Offer an Opportunity to Remedy the Breach
In some cases, the tenant may be able to correct the breach and avoid eviction or other legal consequences. If a tenant is behind on rent, offering them the chance to pay what is owed can resolve the issue without further escalation. Similarly, if the tenant has caused damage to the property, allowing them to repair or compensate for the damage may be a reasonable solution.
However, offering an opportunity to remedy the breach doesn’t mean that the landlord should wait indefinitely. In Ontario, if the breach isn’t addressed within the specified time frame outlined in the notice, the landlord can move forward with more formal steps, such as applying for eviction through the Landlord and Tenant Board.
File an Application With the Landlord and Tenant Board
If the tenant fails to remedy the breach of the lease agreement within the designated time frame, the landlord can file an application with the Landlord and Tenant Board (LTB). The LTB is an independent tribunal that hears disputes between landlords and tenants.
It’s the appropriate venue for resolving issues such as non-payment of rent, property damage, or other breaches of lease agreements. The application to the LTB can include a request for eviction, compensation for damages, or other remedies, depending on the nature of the breach.
The LTB will review the application, and a hearing will be scheduled. At the hearing, both the landlord and tenant will have the opportunity to present evidence and make their case.
If the LTB rules in favor of the landlord, they may issue an order to evict the tenant, require compensation for damages, or allow the tenant additional time to remedy the breach. The specific outcome will depend on the facts of the case and the severity of the breach.
Consider Alternative Dispute Resolution
In some situations, it may be possible to resolve a breach of contract without going to the LTB. Alternative dispute resolution (ADR) methods, such as mediation or arbitration, allow landlords and tenants to come to an agreement outside of formal legal proceedings.
These methods can be less time-consuming and less expensive than going through the LTB, and they offer both parties a chance to reach a mutually satisfactory resolution. Mediation involves a neutral third party who facilitates discussions between the landlord and tenant to help them reach a compromise.
Arbitration, on the other hand, involves a neutral third party who makes a binding decision based on the evidence presented by both parties. Both ADR options can be effective for resolving breaches of lease agreements, particularly when the breach is minor or the tenant is willing to cooperate.
However, it’s important to note that mediation and arbitration are voluntary processes, and either party can opt to proceed with formal legal action if they’re not satisfied with the outcome.
Take Legal Action if Necessary
If the tenant refuses to cooperate or resolve the breach of the lease agreement, the landlord may need to pursue legal action. In Ontario, this typically involves filing an application with the LTB, as mentioned earlier.
However, there may be cases where additional legal action is required, such as when the tenant causes substantial damage to the property or refuses to pay rent for an extended period. In these cases, the landlord may consider seeking legal advice and pursuing a civil lawsuit.
A lawsuit could lead to a judgment that requires the tenant to pay for damages or outstanding rent, as well as other possible remedies. While legal action can be costly and time-consuming, it may be the only option when the tenant refuses to comply with the lease terms.
Eviction Process
If the breach of the lease agreement is severe, such as repeated non-payment of rent or significant damage to the property, the landlord may need to initiate the eviction process. Eviction in Ontario is a legal process that must be carried out in accordance with the Residential Tenancies Act (RTA).
To begin the eviction process, the landlord must file an application with the Landlord and Tenant Board and attend a hearing. If the LTB issues an eviction order, the landlord can apply for a writ of possession, which allows them to have the tenant physically removed from the property.
It’s important to remember that self-help eviction, such as changing the locks or forcibly removing a tenant, is illegal in Ontario. Landlords must follow the proper legal procedures to terminate the tenancy and remove a tenant from the premises.
Call Our Reputable Law Firm Today
Handling a tenant’s breach of lease agreement in Ontario requires careful attention to detail and an understanding of the applicable laws. Allow our firm in North York, Ontario to guide you through this process. When you’re ready to schedule a consultation, call Morris Legal Services today.
