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Recovering Unpaid Rent in Small Claims Court

Dealing with unpaid rent can be a challenging experience for landlords. In Ontario, the legal process for recovering unpaid rent involves several steps, including obtaining an order from the Landlord and Tenant Board (LTB), suing in Small Claims Court, and enforcing the judgment. This guide provides an overview of each step to help you navigate the process.

Obtaining an Order from the Landlord and Tenant Board (LTB)

Before you can pursue a case in Small Claims Court for unpaid rent, you must first obtain an order from the LTB. The LTB provides a formal process for resolving disputes between landlords and tenants. Here's how to start:

  • File an Application: Begin by filing the appropriate application with the LTB. For unpaid rent, you'll typically use the form for arrears of rent. Ensure you have all necessary documentation, including the rental agreement and records of missed payments.

  • Attend the Hearing: Once your application is filed, you'll be scheduled for a hearing. It's crucial to attend this hearing and present your case effectively, providing evidence of the unpaid rent and any attempts to resolve the issue.

  • Obtain the Order: If the LTB rules in your favor, you'll receive an order for the tenant to pay the unpaid rent. This order is necessary to pursue further legal action in Small Claims Court if the tenant fails to comply.

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Suing in Small Claims Court

If the landlord did not obtain a LTB order before the tenant vacated, you can take the matter to Small Claims Court. Small Claims Court in Ontario handles cases involving claims up to $35,000. Here's the process:

  • Filing a Claim: To initiate a case, you'll need to file a claim in Small Claims Court. This involves submitting a Plaintiff's Claim form, detailing the amount owed and the basis of your claim, along with the LTB order.

  • Serving the Defendant: After filing your claim, you must serve the tenant (now the defendant) with a copy of the claim. This ensures they are aware of the lawsuit and have an opportunity to respond.

  • Attending Court: Both parties will have the opportunity to present their case in court. Be prepared to present your evidence, including the LTB order and any communication regarding the unpaid rent.

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Judgment Enforcements

A judgment or order in your favor doesn't guarantee immediate payment. You may need to take steps at the Small Claims Court to enforce the judgment if the tenant still does not pay. Here are common enforcement options:

  • Garnishment: This involves redirecting a portion (usually 20%) of the tenant's wages or bank account funds to you until the debt is paid.

  • Seizing Assets: If applicable, you can obtain a writ of seizure and sale, allowing for the tenant's property to be seized and sold to cover the debt.

  • Lien: In some cases, you may place a lien on the tenant's property, which must be paid off before the property can be sold.

 

Enforcing a judgment can be complex, and you may wish to consult with a legal professional to explore your options and ensure you follow the correct procedures.

 

By understanding and following these steps, landlords in Ontario can effectively pursue unpaid rent through the Landlord and Tenant Board, Small Claims Court, and judgment enforcement processes.

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