Remedies for unpaid rent in Canada
When tenants do not pay their rent, landlords can face financial and legal difficulties. In this article, we look at the remedies available to landlords in Canada when rent goes unpaid. Whether the goal is to recover rent arrears, terminate the lease or start legal proceedings, it is essential to understand the legal options available to deal with this difficult situation.
Remedies available to landlords for unpaid rent
When a tenant does not pay the rent, the landlord can find themselves in a difficult position. Fortunately, there are remedies available to landlords in Canada to deal with unpaid rent.
The landlord’s first remedy is to recover the rent arrears. To do so, the landlord should first send the tenant a formal notice reminding them of their obligation to pay the rent and giving them a deadline to settle the situation. If the tenant still does not pay after the formal notice, the landlord can start legal proceedings to recover the arrears.
The second remedy is to terminate the lease. If the tenant does not pay the rent despite the formal notice, the landlord can apply to have the lease terminated and the tenant evicted.
Finally, if the first two remedies do not work, the landlord can start legal proceedings. These proceedings allow the landlord to recover the rent arrears and have the lease terminated. However, the landlord must meet certain conditions before taking legal action for unpaid rent, including sending a formal notice to the tenant.
Recovering rent arrears
When a tenant does not pay the rent, the landlord can take steps to recover the arrears. However, to do so, certain conditions must be met and certain procedures followed.
Under the law, the landlord is entitled to claim the unpaid rent and interest on the amounts owed. In Quebec, the Civil Code of Québec provides that the tenant must pay the agreed rent throughout the term of the lease (article 1855). It also provides that the landlord may obtain the resiliation of the lease if the tenant is more than three weeks late in paying the rent (article 1971).
The landlord must nevertheless follow certain procedures to recover the rent arrears. The first step is to send a formal notice to the tenant reminding them of their obligation to pay the rent and giving them a deadline to settle the situation.
If the tenant still does not pay after the formal notice, the landlord can start legal proceedings to recover the rent arrears.
The formal notice: a first remedy for unpaid rent
When a tenant does not pay the rent, the landlord is entitled to take steps to recover the arrears. The landlord’s first remedy is to send a formal notice to the tenant reminding them of their obligation to pay the rent and giving them a deadline to settle the situation.
In Quebec, the tenant must pay the agreed rent throughout the term of the lease (article 1855 of the Civil Code of Québec), and the landlord may apply for the resiliation of the lease if the tenant is more than three weeks late in paying (article 1971).
The formal notice is an important step for the landlord, because it reminds the tenant of their obligation to pay the rent and gives them a deadline to settle the situation. It should be sent by registered mail with acknowledgement of receipt or served by a bailiff. It should include the following information:
- The amount of the rent arrears
- The payment deadline
- The consequences of non-payment (termination of the lease, eviction, etc.)
If the tenant does not pay despite the formal notice, the landlord can start legal proceedings to recover the rent arrears and terminate the lease. However, the landlord must prove that the tenant is in default of payment and that the formal notice was sent. In Quebec, these claims are heard by the Tribunal administratif du logement.
Note that the tenant may be ordered to pay legal costs. In legal proceedings, the tenant may be ordered to pay the costs incurred by the landlord.
Conclusion
Not paying rent can have serious consequences for tenants. Landlords have several remedies to recover rent arrears and terminate the lease in the event of non-payment. It is important for tenants to meet their contractual obligations to avoid any dispute with the landlord.
