Can your Landlord SNIFF YOU?

Are they changing too many rules?

Larry the Landlord Renting to Smokers?

No matter your opinion on the No Smoking Bans in public places; Landlords in Toronto are also faced with the reality that after renting to Smokers the condo unit or townhouse will be less desirable to subsequent tenants.

Landlords will very often need to repaint, rebroadloom and may very well need to replace fabric draperies.  So who pays? 

http://www.realequity.ca/cases/smoking.pdf

The Landlord Tenant Boards decision interprets the "wear and tear" that 20 years ago would have been Normal to now be Tenant Damage.

You can and will be held liable for repairs to bring the unit back to a rent-able condition.

Can you pass the SNIFF TEST?

Have the rules gone too far?  

Can a Condo Building Ban Smoking? Toronto Ontario

You know its coming....

The zeal for a NON smoking society.  What was a common and accepted event is now banned at work, restaurants, building entrances, outdoor patios and even soccer fields.   Now with new legislation they are proposing banning smoking in all condominium units and duplexes,  anything that shares a wall.

SAN RAFAEL, Calif., Oct 15 (Reuters) - A San Francisco suburb on Monday banned smoking in duplexes, condominiums and other multi-family homes, with city leaders saying they hoped to lead a wave of such regulations across California and ultimately the country.
The City Council in San Rafael, a community of 57,000 people about 15 miles (24 km) north of San Francisco, voted unanimously for the ban, following a handful of other California municipalities that have outlawed smoking in buildings with as few as two units.
"We are happy to blaze a trail," Mayor Gary Phillips said before the vote. "We're most happy to be in the forefront of the issue because we think it will greatly benefit our residents and those visiting San Rafael, and we think it will set the tone for other cities as well."
Tobacco-control experts predicted that the tough smoking ordinance in San Rafael could touch off a larger movement in other states and cities.
"The San Rafael ban is a very significant event because it will spread," said Robert Proctor, a Stanford University history of science professor. "We're on the downslope of a big curve. Smoking peaked in 1981 with 630 billion cigarettes sold in the United States. Now it's down to 350 billion. And that number will keep on going down until smoking is a distant memory."
San Rafael is the state's ninth municipality to completely restrict smoking in multi-unit housing, said Pam Granger, advocacy manager for the American Lung Association in California. Granger said California was the only state where local jurisdictions have banned smoking in homes.
The ordinance has generally been supported by residents who have spoken at city council meetings, although two smokers came out to oppose the ban on Monday evening.
"This proposed smoking ban actually intends to punish people for what they do in their own homes," Thomas Ruppenthal told the council. "I really feel this is tyranny."
The ordinance also would prohibit smoking on San Rafael's downtown streets - the backdrop for parts of the 1973 film "American Graffiti."
California municipalities have used the report to prohibit smoking in apartments and other multi-family homes. In some cases, the laws apply only to new construction or to just a percentage of a housing complex's units.
But the restrictions have become increasingly strict, and San Rafael's ordinance applies to all homes, new or existing and rented or owned, with shared walls. http://www.huffingtonpost.com/2012/10/16/san-rafael-smoking-ban_n_1968990.html

All new or existing condominium units or residences with a shared wall, [takes in Townhouses and Semis] Knowing that we are approximately 6 months to a year behind the trends in California, How long will it be that we hear about this legislation in Toronto, Ontario?

Will Toronto Landlords be performing "sniff" testing on prospect tenants?
Will Condo buildings go SMOKE FREE?
Is a Smoker's Condo Evaluated at Less than market?  How much?

Have you say.... 

Raising the Rent in Toronto

Beyond the Sea, Humber Bay Shore

Are you an investor? Do you want to Buy and Rent Condo Units in Toronto? Then you should be aware of a few things.   We have something here called the Landlord Tenant Tribunal.

Ontario’s annual Rent Increase Guideline is based on the Ontario Consumer Price Index (CPI), which is a measure of inflation calculated monthly by Statistics Canada.  The rate of allowable rent increases for 2012 will be 3.1 per cent.
The guideline is the maximum amount that most landlords can increase a tenant’s rent during the year without making an application to the Landlord and Tenant Board.  It is based on the CPI, which is regarded as an objective, reliable measure of inflation, charting the change in the price all goods and services in the provincial economy.
In most cases, the rent for a unit can be increased if at least 12 months have passed since the tenant first moved in, or since his or her last rent increase. http://www.ltb.gov.on.ca/en/Key_Information/274235.html

Now, that in itself sounds simple enough.   DID you notice that word MOST LANDLORDS? If you are the owner of a condominium unit build after November 1st 1991  then there are no RENT CONTROL LIMITS. It is simply what the market will bear for you to charge.


Need proof?

Rules relating to rent(2)  Sections 104, 111, 112, 120, 121, 122, 126 to 133, 165 and 167 do not apply with respect to a rental unit if,
(a) it was not occupied for any purpose before June 17, 1998;
(b) it is a rental unit no part of which has been previously rented since July 29, 1975; or
(c) no part of the building, mobile home park or land lease community was occupied for residential purposes before November 1, 1991. 2006, c. 17, s. 6 (2).
http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_06r17_e.htm#BK5

So when you decide HOW MUCH  rent to charge and you would like an  increase next year because the property taxes, maintenance and hydro fees have increased, Yes you can pass that along to the Tenant. with the proper notice and they have a choice to stay and pay or seek alternate accommodations.


Toronto, currently has a Vacancy Factor of 1.1%


If you need Humber Bay Shore or Etobicoke Condo advice I would be pleased to meet with you. 

Larry the Landlord; Know what you can ask

Weisleder: Do your research before renting out your space

It is important to conduct proper research in advance before renting any space to a residential tenant, whether it is a basement apartment in your home or an investment property. Being careful in advance can save you unnecessary lost rent, repairs and legal costs.

You must also be very careful when interviewing any potential tenant that you do not inadvertently violate any sections of the Human Rights Code.

In one case, a woman with three teenage boys was refused an apartment. She was able to prove that she was discriminated against for “family status” reasons. The judge accepted her statement of complainant that the superintendent told her that her application would probably be rejected because of her children and was told the landlord had trouble with teenagers in the past. She was awarded $4,000. It is clear that you must be very careful what you say to a tenant at any time in the interview process.

You are permitted to ask a tenant on a rental application if they smoke, whether they have pets and how many people will be living with them in the apartment. You cannot ask about their ethnic background, religious or sexual preference or marital status.

Trying to evict a tenant who is damaging the premises or interfering with the enjoyment of the other tenants can typically take two months, and that’s when there are no significant delays. Unfortunately, professional tenants who know how to work the legal system can delay proceedings by up to six months. Such tenants can cause severe financial hardship for landlords.

How can you avoid this from happening? You can carefully qualify your tenants, doing credit checks, obtaining references from previous landlords and making sure the tenants have regular employment. When you speak to prior landlords, make sure to ask whether the rent was paid on time and if the tenant kept his unit clean and tidy or caused damages through smoking, pets or disturbing the other tenants. To verify employment, ask the perspective tenant for a copy of their most recent company pay stub.

Once you have created a basement apartment, it is not so easy to change it back. For example, in one case where a landlord tried to terminate a basement apartment tenancy in order to use the space as a home office, it was not deemed to be acceptable as a reason to evict the tenant. Similarly, converting the basement for extra storage space will also not likely be an acceptable reason to evict the tenant.

Even if your basement apartment is illegal or has not been legally retrofitted, you still cannot evict the tenant. Only the city can evict the tenant, but be careful because the city could also issue a work order, requiring you to spend thousands of dollars to properly retrofit the unit.

In another decision, a landlord was not permitted to terminate a tenancy even though they proved that their son needed the apartment because the tenant had a chemical disability and she could not find another apartment to address her specific needs. The only way the landlord could evict her was if he could assist the tenant in finding a suitable alternative accommodation.

There are also of course responsible tenants who take excellent care of their apartment units, in many cases better than even an owner would. By making sure that you find these tenants in advance, you will not only secure your investments, you will not have to worry about the difficulties or the costs that will be incurred if you later need to evict them.

Mark Weisleder is a lawyer, author, course developer and public speaker for the real estate industry. Visit him online at www.markweisleder.com.

Apartment Building Evicts Tenants

No, this is not in Ontario, or even Canada.

But this is a huge example of the different protection that is offered to Tenants in both rental units and condominium owners in situations where the Landlord/ Building is in mortgage default.

I would be very surprised to see a situation like this in Toronto.

We love to hate government control but the Rental Tribunals and Banks follow Canadian law which is built on the concept of precedent (previous historic decisions).

Maybe thats why we have so few situations (less than 1% default on mortgages) that make the news in this fashion.

Your comments and contributions are appreciated

Will you rent that condo? Who do you tell..

Great! Now you have possession of that condo.

You will be paying phantom rent (Mortgage) until the unit is registered, so you are considering placing a tenant into the property for a few years to pay it down.

That seems easy enough, but there are some other practical and legal considerations.



Stan Gelman is a local lawyer for Etobicoke and Mississauga. Stan can be reached at 905 270 5110 or through his website http://WiseLawyer.ca sgelman.sglaw@rogers.com

Your comments and remarks are appreciated and respected.