November 2022

Stuck in LTB limbo? Here’s how to spend your waiting time wisely

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Small landlords are feeling powerless against the two-year backlogs at Ontario’s Landlord and Tenant Board (LTB), with some left at risk of homelessness and bankruptcy. What can property managers do to help?

How backed up is the Landlord and Tenant Board?

The board, which handles landlord-tenant disputes like eviction cases, was forced to suspend all proceedings from March to August 2020 because of the pandemic – leaving them with a backlog of cases to clear. Although LTB’s limited staff is making an effort to catch up, the current average wait time for hearings is eight months.

For many owners and property managers, these delays result in a considerable loss of rental income when tenants do not pay rent or refuse to leave when given an eviction process.

When landlords worry about long delays, property managers can be the safe pair of hands they need – taking action on behalf of their landlords to prepare for or even avoid court altogether.

Automated chasing

A series of escalating e-mail and text message payment reminders can be sent to tenants in arrears, applying reasonable pressure while staying courteous and legally compliant.

PayProp automatically tracks the amount owed with data pulled directly from the bank so totals are always accurate and up to date. These reminders also include instructions on how tenants can pay through multiple channels facilitated by PayProp, including Pre-Authorized Debits and instant electronic funds transfers via our Tenant portal.

The most important thing when chasing arrears is to start as soon as possible. PayProp’s stats show that the longer a debt is left unpaid, the smaller the chances of ever recovering it.

Repayment plan

Property managers can try making alternative payment arrangements with a tenant who has recently fallen into arrears but is in good standing otherwise – with the landlord’s approval, of course.

PayProp allows you to set up flexible and powerful payment rules at any point during a tenancy. By scheduling rent due dates to coincide with payday or spreading the balance over the month, tenants have more breathing room to improve their financial situation.

Once they’re able to pay rent in full again, you can negotiate an affordable repayment plan with them for any back rent.

If renters follow the set repayment plan, landlords and property managers may not need a Landlord and Tenant Board hearing after all – and if you do decide to go ahead with an eviction, securing repayments will reduce the landlord’s losses.

Reliable proof

Should neither of these options resolve the issues and eviction becomes necessary, PayProp makes it easy to build a concrete case for the eventual hearing.

Our detailed audit trail records every invoice, late or missed payment, arrears reminder, and more. The log cannot be edited or deleted, so screenshots can be used as indisputable evidence in support of the landlord in court.

With PayProp, you can protect your clients’ investments and help them reclaim power over their property. Book a free demo to learn more.

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