Somehow when you deal with investment real estate all day, every day, big issues don’t bug you anymore … or they bug you less perhaps is the better way to put it! And that’s never more apparent than when we chat with Kelly Hawkes. She is the VP of Legal Services at Veranova and deals with a LOT of different headaches. The good news is she’s a superstar and shares her knowledge with us so we can all learn! On this episode of The Your Life! Your Terms! Show we chat about default rates in Alberta, Ontario Cannabis, the new Ontario Standard Lease agreement, Airbnb and the Ontario Tenancy Act and other random things! You can find Kelly at www.Veranova.ca, enjoy the show!!
00:00:00 Hey everyone, it is Tom Karadza and on this episode of the show we have Kelly Hawkes. She’s the VP of legal services at Veranova. Great Lady. Always have a blast talking to her because she just deals with a ton of shit at all times. I’m on this episode. We, we chat about the Ontario Standard lease agreement. We chat about cannabis and what’s going on with investors and landlords and then you can have cannabis regulation came and say cannabis, cannabis regulations, cannabis, cannabis regulations, um, and we chat about Airbnb and the tenant board and does a tenant board heaven in the Ontario tenancy act. Does it have any jurisdiction over Airbnb rentals? And more, we get into all different things that she sees. She’s basically a straight-up expert when it comes to dealing with the landlord tenant board. We are so fortunate. She teaches a class in here for Rock Star Inner Circle members.
00:00:49 So a few times a year she teaches a class on what landlords and investors should know, know about dealing with a tenant board and about the Ontario tenancy act. So an absolute great resource. Ton of information jammed packed into this. We talk about some default rates and some some subprime lending that is happening in Canada that I was not aware of. So wait to hear this stuff and listen before we get started with this. If you are not registered for the next your life, your terms of event, you should do so now and if you’re not aware of what this is, this is something we run three times a year. It’s for rockstar inner circle members exclusively, but in the last couple of years we’ve opened up a few spots to people who are not members if they want to attend. So if you’re not a member you have to pay to attend.
00:01:34 You can find out the details of this at yourlifeyourtermsevent.com. So if you want to find out what’s going on, you go to yourlifeyourtermsevent.com again, and give you a quick summary. Right now, the big thing that we’re talking about is a top five megatrends that we’re seeing that are affecting properties and business and your income and your career here in Canada. It’s affecting the middle class. We’re going to be sharing these trains. It’s happening right in front of our faces and very few people are talking about this stuff, so we’re going to be discussing that and how it all impacts our lives and our children’s lives. We also are bringing out a special guest speaker, Giovanni Marsico. I’m sure I’m butchering his last name, but he is the brains behind the arch Angel Summit in Toronto. He’s the person who started it and runs it.
00:02:16 Many of you will know that is a great summit that’s run in September each year or he brings out guest speakers from all over North America and the world to talk. That has taken off like fire. He was in real estate, changed his career and is doing this. Wait to hear his story. We’re doing the rockstar economic economic update, so we have a lot to talk about there specifically on what’s happening with interest rates and what’s going on and some of the biggest demographic trends that are really coming to fruition and affecting us here in Canada right now. We’re going to be talking about all of that at the rockstar economic update. Then we also have a local real estate market, so on the streets. What we’re seeing, and this is crazy what we’re seeing with some of the development changes going on in Ontario. Some of the transportation changes to some of the rent stuff that changes that we’re seeing is staggering.
00:02:57 Like I cannot believe what we’re seeing in rent on some areas and some of the impacts that this is having on some of the social services and where the opportunity lies for investors in this area. So that’s a really important talk. That’s our local market update and then we’re going to have a chat about some investors who are becoming real estate developers themselves. So as the golden horseshoe gets developed, there is a lot of little infill projects that are available for all of us. Most people think that’s well beyond their capabilities. We have two awesome investors, Charles Wah and Andy train who are going to come up and share how they’re doing a development. We’re also going to get a second suites update from Andy Transfer. Andy train, if you’re not familiar, does a lot of work with second suites in Ontario. He’s going to see, give us an update on what he’s seeing and then we’re going to.
00:03:39 There’s more toxic in the end at this one though, um, on how to transform your transfer your wealth from one generation to the next. A lot of people will ask us, hey, I’m buying all these properties and I’m building all this stuff up. How do I transfer it over to my kids or grandchildren in the most tax efficient way possible? We are going to be discussing exactly that. We’re bringing our out our accountant with this mission to share this information so we actually have more jammed into this. But that gives you an idea if you’re a rockstar member, you can just reach out to the office to register. If you’re not, you can go to yourlifeyourtermsevent.com. It’s Saturday, February second from about 8:30 to 1:30 is the runtime. We jam a ton of stuff in there. We’re pumped to do this kind of thing. It happens a few, only a few times a year. So we’re getting excited for this one. It’s coming up. It’s only a few weeks away. I think that’s enough of that. Let’s get on with the show.
00:04:27 Are you ready to live life on your terms? Is it time to take charge business? Building the economy, health and nutrition and more. It’s the, your life, your term show with Tom and Nick. Are you ready? Let’s go.
00:04:53 Okay. So we were just saying that Kelly is a brave person, um, because of the, it wasn’t for the line of work that you’re in, but you’re also a brave person because of the line of work that you’re in because you deal with all kinds of different shit on an ongoing basis and you seem to handle it with stride. I don’t, it doesn’t look like you’ve lost your mind yet or anything.
00:05:10 I don’t think I’ve lost my mind yet. But, um, there’s some been moments where I’ve questioned what I’m doing, but I just keep going. It’s, it’s everyday is different and um, I definitely have learned with this job that I need challenges to keep the momentum going and this presents many opportunities for that. For sure.
00:05:29 So when we announced to everyone, I think Nick and I both, we both reached out to you over the years, uh, for different stuff. But anyway, we will reach out to the team and said, hey, Kelly is coming in. Does anyone have a question? And the questions that came back are all, uh, number one is cannabis. Everything to do with cannabis. Asked Kelly, what’s going on with cannabis, especially what’s going on with those awful commercials that they run on tv where the Guy Nick, you know the line where the guy says, what does he say? It was like three reasons of why they did. Why is Ontario government selling
00:05:58 weed now and it’s like number one is was to ensure you’re getting quality product. That was a problem before. Did you hear about that? Yeah. They had one on ours is the Ontario store was selling more than one supplier that all of their stock was full of mold and they had sent it out and they had to refund and they had to like go through and they’re right now they’re trying to figure out, excuse me, how they can increase the quality control on what’s going on. The local street dealer had better quality because if you. If that was so, if you call the local sprinkler, the private sector, it was way more efficient because that never made it to market. It is the private sector, but street dealer just sounds so much better, but you’re right, you’re right. The private sector was able to produce that without mold now.
00:06:45 Then they did some survey and they were asking people who were in the lineups for the store, right? Are you not going to be shopping from your regular source? And they’re like, man, we do both. So it hasn’t really. Like, it hasn’t done everything they wanted to do yet, but they’re getting some taxes now. So they’re happy while they’re there learning how to become drug dealers. Right. And they, they’re way behind in government. That’s the thing. Do you think our government’s going to be able to compete with some kind of street savvy drug dealer to two things that it’s done is given. It’s given the federal government tax revenue or all the governance tax revenue. So that’s number one and Trudeau for the election this year, right? I think it’s, is it this year I have no idea, but for the next election, he now he gets to say, hey look, I legalized cannabis.
00:07:26 I said I was going to. You guys should vote for me again. That’s, I mean, look, that’s the real reason that those are the reason. Everything else is like a, it’s a bunch of bullshit to be honest. Now that I’m reading up on the oil and gas industry because a pure Paul was on here, he’s from Alberta, was telling us all the disaster that’s going on in and gas industry out there. We were actually just killing me. I, Nick, just before he sat down, we were looking at mortgage default rates in Alberta and Saskatchewan, which is like a sad thing to do, but they’re higher than Ontario in Ontario. We just saw that it’s point. Oh nine, which was super low and it’s about four or five times. That’s like point four, five in I think it was Alberta. So Alberta just has a lot more situations so they can make the weed stuff happen, legalize it. But they can’t fix the oil and gas crisis going on. But anyway, I’m getting, I’m getting off track, but it’s not just the mortgage that’s defaulting either because my department, we, um, I also service large creditors across Canada. So credit cards and things like that. We’re getting huge volume on defaults of those things. So from that area of the country.
00:08:26 That sucks. Sorry guys. Yeah, no, I mean this reality. I mean it’s come back up, noodle swing, but they get hit with stuff like we’ll see that in Oshawa. Yeah. Whenever there’s anything huge. A big shutdown. You know, on the auto side there’s a lot of defaults on a lot of things and we’ll see that happen. Sand they’re saying 2100, 2100 jobs with us. Just the direct jobs in. Was it 2,235? I forget. Oh, I thought it was. It was in that range. Yeah. Okay. Okay. Um, but, but, but then there’s. But there’s all the offshoots. So maybe that’s including all the officer, right? Because, because when there’s the plant, there’s all the supporting industries, restaurants around there that are making money. The cleaning company, they go to the court of all this stuff, right?
00:09:09 So on my line of business, what we’re seeing is a huge increase in like the private lending and the subprime lending on the vehicle side of things because there’s defaults on all of those. Same time on vehicles, so people are huge. I have a, uh, you know, that’s, that’s one of the biggest parts of my department as well as subprime lending on vehicles. We do all the tracing and the um, like locating those, the people that have defaulted go repo the Vo, they already know where the vehicle is, so when we get it, they’re trying to get a judgment for the default on the loan. Um, in, in all cases, the car’s already been repoed and sold and they need to locate these people so that we can serve them with the claim and try to try to get some money back
00:09:53 on the loan. Main source of subprime auto lending in Canada is that there’s a lot of them.
00:09:58 Uh, there’s, there’s a lot of smaller ones that we deal with that are private. Um, right now we have a couple of the larger ones, but they’re all out there and it’s huge now subprime lending on the vehicle side and it’s easy. It’s easy to get a car, like you walk in, you want a car, um, they do your application and it shoots out to 50 lenders and you have to be quick like that line of business. It’s pretty tough, but on the default side you have to really but build in part of your, um, you know, loan loss provisions because I think it’s something like 15 percent of what they learned.
00:10:37 Default. We’re just talking about mortgages in Canada or an Ontario point. Oh nine are in default cars. Fifteen percent. Well on like an individual lending, like accompany that lends out. Got It. Okay. So not all that type of thing. That’s their expectation. That’s what the US, the interest rate must be super high because they’re just, oh my gosh, it’s, it’s high. Is it? Yeah. Do you know what it is? Okay.
00:11:03 Somewhere between, depending on the company and the contract. Twenty nine point nine or 39 visa card. Oh my God. Yeah. So far, that’s like 13 grand. The total, the total cost of borrowing is like 30
00:11:19 for a $13,000 vehicle. Yeah. It’s crazy. But the car and if you need the car, you get the car. I just wanted to hear that. I. No, I’m sorry guys. It’s my line of business. But the good thing is is that when they sue, they can only sue for the principal amount of the loan. So they’re not suing for 30. I’m, they’re sewing for the 13 old logs. Well that’s interesting. So even if I, if I have one of those loans and I stopped making my payment for whatever six months, they finally pulled the car. I only owe even for that six months that I still drove the car. I only owe for the principal amount of it.
00:11:50 Yeah. Well there will be a small portion of the, of borrowing built
00:11:54 in, but it’ll only be for the time I’m up until they repaired the vehicle because they can’t charge you for the full amount for the closet because it wouldn’t be a bank if they foreclose or did power of ceiling and you’re trying to take into account the amortization table. It’s a million dollars for your property. You owe us $2,000,000 because of the amortization. We’re losing, you know what, that’s my thing. I mean, never say never. Right? The banks, they’ll find a way to tell you that’s what’s happening. The banks are actually getting into the subprime lending market now. Really? They need growth, man. When I thought we were gonna I thought cannabis was going to be the crazy shit where we’re going to do so. Uh, you see that more and more. It’s on the rise. Big Time. Yup. Yeah. Primary banks here in Canada. Yeah. Wow. Yeah.
00:12:40 Entering into the subprime lending market for sure. Yeah, because they see money whenever I get it. Yeah. They need mortgages and let’s be honest, the trend for that type of thing is not that market’s not going to shrink. It’s gonna. I mean, you know, you’ve talked about destruction of. Look, we both talked to the instruction of the class so much it’s going to grow up. What I see too is that there’s a lot of young people going into the subprime market and that’s really hard to hard way to start out about you guys, but we saved money if we wanted to buy a car. You worked your butt off and you saved the money and you bought like a $2,000 car or something like that. Drove it until it fell apart. Right. You didn’t go out and get a loan with an interest of somewhere between 29 and 39 percent.
00:13:26 This lending thing, I think I brought it up last, a member of it that we had. What do you remember when like debt started to becoming something? I think it was like the early, early eighties, mid-eighties. Well, it’s still really started killing early 19 seventies. Then you really see the separation beginning of the deal, but yeah, we’re. We’re the. We’re the jumping girls start to happen. He was in the eighties. There was worried about my hair in the eighties. Not really that. I was like, I don’t know what was going on and you’re not worried about our hair because when you’re young you’re. That was a different era, but before that, no one to your point, everyone saved for things. We only then that this whole borrowing to buy stuff in lines of credits and all this debt, so easy started exploding and that’s what changed everything and that’s when you know, all these, you know, these high higher interest loans and lending, private lending, all this stuff came into play and you know, no one’s taught how to handle it. There’s people out there that loan money for like just life events. Like I had someone approach me to see if I would do some work for them on trying to locate people who they’ve loaned money for, for like weddings, um, events like big family things or trips like people out there will loan money to people at a really high interest rate for remix. Anything on the car for. And it’s a, it’s a. You know, what’s interesting now that I think of it, I see less beat down cars on the road than like
00:14:52 when I was growing up, I remember seeing a lot of people with beat down cars because there was less access to credit. And I remember all my friends when we first started driving, everybody had like the beat down forks wagon rabbit, and my buddy Dan who was listening to this will remember this because he still owes me this. He, his car was so beaten down, we were driving up north in it and it broke, first of all, it started raining and his windshield wipers didn’t work. So we literally are reached out of the car and tried to grab the windshield wipers and put them back and forth. Think of how safe this is so that we could see out the window as he’s driving through the passenger side that I’m right. But uh, but uh, his car breaks down and oil spills out of the engine, remove the floorboards where I’m sitting onto my toe because I’m wearing sandals and burned hot engine oil. I might burning my toe. I’m like, Dude, you still owe me for my toe as a kid. But I, but, but no one’s driving those really beat down. That’s how we all started driving.
00:15:45 Yeah. Do you can even get loans for car repairs? Gee, how hard it is. Once you dig or see how we can get off this topic, but once you dig yourself that hole in that, that interest rate, it is so hard to get out of it. Those rates, so start life with so much debt. I mean that’s like trying to make your minimum payment on a visa card that has like 10,000 bucks on it and trying to call out of that. It’s not 10 to 13 grand is not the end of the world, but at at 30, at 30 or 40 percent interest now. It’s crazy. It would if you sort of look into a crystal ball, if you think that if there’s a large amount of young people entering into those kinds of loans at this age, how are they ever going to be able to purchase a house? So I think we’re going to see a huge increase in, you know, 10, 10, 15 years on the number of renters that there are in Canada. I feel like right now there’s $100
00:16:38 plotting right now. Not because I like what you just said because we agree with what you just said. One hundred percent, this was happening in front of our eyes and no one’s talking about it. Yeah. We’re talking about at Kelly’s talking about. But you know what I mean?
00:16:50 Yeah. No. If you think about it, how are they? Because it’s hard enough to save for a house. Um, but when you’re fighting back alone, that’s like 39 percent interest or something like that. And you’re entering in at 20
00:17:01 cool. With OSAP loans that were used to, for me to go on to Mexican vacations with my friends, like I funded my friend’s vacations and they have to pay me back up. My Joseph. Anyway, she didn’t charge them $40. Zero. So zero. I was paying interest. That’s what want you back. That’s how smart I was, I think. Did we get charged interest on? Oh, saplings? No. So I was probably paying interest but I was giving them just straight lending. But uh, anyway, they’re the shark. The memories in Mexico were great, but leaving school now with higher debt than ever and then entering the workforce would that much debt and then just getting car loans to buy cars. Like how do you. Yeah, to buy a house.
00:17:40 The last dream we’ll see that increase for sure because I think, I don’t know if I said this last time we were talking about there’s one point $4 million renters now in across Canada. Is it Ontario or Canada? That’s got to be Ontario. I’m pretty sure it’s Ontario. Yeah, we’ll double check that number, but we’ll have our fact checkers check that number, but I’m pretty sure it’s one point four in Ontario so that I believe that that’s the only way it’s gonna go, so that’ll be good. It’s good for people who are purchasing properties. We just told them there’s an opportunity in all of this. As sad as it sounds like. I mean it’s kind of horrible, but as an investor, if you are able to somehow save up enough money to buy a property, it puts you in a really good position here. Material with like 9 million people in the southern Ontario Golden Horseshoe area.
00:18:28 If you’re renting out a house, you’re in a spot where the trend is your friend, you know? So yeah. I don’t think I made that trend is, but uh, yeah, it’s um, yeah, I, I shake my head at it, but what I wanted to go ahead and yeah, the only thing that we need now is for the landlord-tenant board who rules all of these tendencies is to catch up on what’s happening. Okay. So tell us again, you said there’s some news going on with the tenant, but what’s been in the news a lot lately in the past, I’d say probably it’s going on to almost a year, but really significant now, um, they’ve lost a number of adjudicators or they just don’t have the number of adjudicators that they need to service all of the issues that are being heard at the board. So there’s people waiting months to get a hearing for rent arrears and we all know what that creates.
00:19:22 It creates like more loss for the landlord and delays and you know, what’s happening is, um, they, they haven’t fixed the problem. So they’re actually sending out the hearing packages with no date. And so then all of us are calling in and saying, Hey, what the heck, this isn’t what, what we’re supposed to be getting here. And they haven’t, they haven’t been able to set down dates, so it’s creating a huge, huge delay. And I never thought this is the flip side of more renters where we don’t have the social services set up around it, deal with it, and now we’re seeing this. I know just before the Christmas break, they last a really significant player, a member at the adjudicator board and a lot of reps had a lot of respect for him because he really, you know, when you go in there, anyone who’s been in there, they know that it, it leans to the tenant like it does, they, they’re there to help assist the landlords and to protect the tenants.
00:20:20 That’s what they’re there for. But there are some really good adjudicators who take the time to hear the matters and consider whether or not there’s any prejudice against the landlord based on what’s happening. You know, in that tendency they did lose one. Uh, he was really good. It was kind of a sad story, but anyway, since then I, I, it’s incredible to understand the volume that he actually managed because he did, he covered like I would see him when I was in the court circuit all over, all the different regions and I didn’t really realize how much he actually managed, but then they lost another one and then it’s just really snowballed into this. We can just like, I mean you can just replace them, like what would they need somebody who understands, um, enact. Yeah. And what their role and responsibility is, um, in adjudicating and sitting in that seat. Someone who understands that if they make a decision, it becomes a precedent. I’m someone who understands the fairness of the situation and it’s hard to find those people. Um, it’s hard to find them. Wouldn’t really is. You mentioned regions. What are the regions like? Where are the main tenant boards right now? Like there’s one obviously in Hamilton. Burlington I think has one now
00:21:38 because we wanted, it wasn’t a library. It’s, you’re right. It’s really rare. They only have vocational hearings. You can hear children’s stories and turn it over and yeah. That was in the library at center. Yeah.
00:21:57 That was it. Toronto is huge. The Toronto one is huge. Hamilton one is ridiculously large. The Brantford one I think is held at a Holiday Inn. The one in Gwelf used to be held at, um, brock road and right near the university. But that was at a best western or something like that. Like come on. Yeah. Like they need to address these issues. They really do. There’s a lot. They’re not caught up with what’s happening out there in, uh, in, in the world right now. Um, and then the other one that’s really big is, um, the Mississauga one that’s really big. That one’s actually a formal setup. They have back to that one? Yeah. Roberts back or is it one in Cambridge? It’s a growth. I haven’t been to the Cambridge when there’s got to be one out there too. I haven’t been to that one. Now they are somewhere I forget.
00:22:51 And then the outer regions, like the northern ones, which I’ve recently received a lot of, um, volume on up in the Timmins area, which is odd, but there’s a lot of properties being chewed up in, in that area. Um, they do those. Yeah, they do those mostly by video conference because there’s just nobody up there. So that’s been interesting. It’s been interesting because everyone’s at literally every, the whole lungs. So someone they should. What do you mean? Like they show up, they go to a location, indicators on the screen. Either someone’s a setup there for them to do it. And the adjudicators just on the screen. I just wanted to capture no problem with a rep or the landlord can attend the hearing by video conference or kid as well. Yeah. Yeah. The tenant just because of the proximity of everything. And the tenant, um, can, can attend by video conference or can actually be there because they’re in that location. Okay.
00:23:50 Yeah. Awesome. So yeah, attendance in their home and you’re complaining about something you can say, hey, can you just walk your computer or on your high one? I want to show the adjudicator what we’re talking about.
00:23:58 Yeah. In their defense, that is one way where they’re allowing, you know, our reach as people who provide the services to assist these landlords to expand. So that’s good.
00:24:10 That’s good. That way it looked it up. Um, the national housing survey, the last one that the one that I saw was from 2016. It said one point $4 million renters in Ontario. Okay, perfect. Yeah. So there should be a more updated one, but it’s so now that cannabis is legal, the number one question we get, I’m going to ask you some Airbnb, Airbnb stuff in a second, but uh, is, you know, what can we do with… I think people are freaking out almost for no reason from what I can tell, but with cannabis people are freaking out specifically, I think people who own multiunit properties and they wanted me to ask you what can they do to mitigate anything around cannabis. I’m assuming they’re talking about the growing of plants. Have you dealt with it? So along with that question, how have you dealt with issues in these sorts of properties with cannabis yet?
00:24:55 No, no guys, I deal with a lot of properties. We haven’t had any come my way yet yet. Um, and I think that when, um, you know, when I teach my classes here, I get asked that question all the time, what can we do? And I really think that in order for the landlords to stay ahead of what might be happening at their properties now that this is legalized is the need to be at the property. You need to inspect, you need to do like regular inspections so that you’re, you know, you, you know what’s happening, um, that will help mitigate what might happen because you don’t what? You don’t want us to not be at a property for like a year and then go in and see that there’s been pot plants being grown there and mold and all that kind of stuff. That’s bad. So I really think that if people want to step up and they want to know what they can do, they have to, they have to do the things that are available to them. They have to serve the 24 hour notice and they have to do property inspections that they need.
00:25:54 Do know what’s going on, how often you can do that. Yeah. You wouldn’t want to do it like Sunday dinner once a month.
00:26:04 That’s, that’s a bit much quarter. Yeah. I would say once a quarter is fair.
00:26:08 Yeah. Okay. Yeah. Okay. So it’s a fair thing to tenant
00:26:11 kind of. They haven’t really said but, but let’s face it, if we, you know, if you cross that line then it’s invading their privacy, right? To a certain degree. Obviously if there’s issues you need to get in there like a maintenance issues or things like that. And that might be cause to go more frequently. Like if there’s leakage or some kind of
00:26:30 open arms are, you know, my hydro usage, if people are growing plants and they’re using some bulbs and knows what they’re doing, they’re worried that if they’re the landlord’s paying for hydro, how are they going to kind of recoup that? And I think we’ve discussed this before. It’s to impossible to
00:26:44 kind of track that stuff and they just made some changes to the act of boat that um, I think it’s section 1:34 or section 34. I can’t remember. I’d have to pull it up. But um, it’s, they basically laid down some pretty solid rules about how the landlord can go, you know, try to look at increasing the rent because the utilities have gone up. And is it tough to prove you have to do year over year comparisons? Probably. It’s really challenging. So you have to show year over year, hey, my hydro for the last two years was this and now it’s astronomically different. And then you have to probably go get a judgment for that to be able to change the rent. But they could, you could say, well we cook more than those guys. Like hey, there’s going to be. It’s gonna be a tough. Yeah, that’s tough. Okay.
00:27:30 Yeah. Okay. So nothing too much on the cannabis front. Yeah, there’s no addendums or clauses that anyone is missing. It’s just standard stuff. They have to hold the property in good order that are allowed to live there and do what they want according to the law. And we fall under, under the tenancy act.
00:27:43 Yeah. I think everyone’s looking for like a magical claws to protect themselves. If I have one, I definitely will share it.
00:27:49 We appreciate it. Okay. So the other thing I wanted to ask you is with Airbnb kind of take it, I don’t know what you’re seeing, but we see Airbnb like all over Ontario and someone was asking me, you were kind enough to answer word. I just put that in. Yeah. You, you gave this great answer because I was asking you, I said, Hey Kelly, where does Airbnb fall? Does it fall under the tenancy act here in Ontario or does it not? Because most people don’t want it to. I think there’s benefit that actually it, it would be good if it did, but then you gave this a response that I’d never seen before. And you said the residential tenancy act does not protect people living in emergency shelters. Make sense? Hospitals or nursing homes make sense? Prison makes sense. Student residents or dormitories and I don’t think you mean student rentals. There it is more like the dormitory in the university.
00:28:33 Temporary or seasonal use units, but I think that’s the Airbnb one. Um, and then the last one is units. The sheer units that share a kitchen or bathroom with the landlord or a member of their immediate family. Yeah. So that’s somebody living directly in the house with the landlord. Tenancy act does not apply there. So the temporary one that I listed off there is where you’re seeing Airbnb, it’s temporary, so it probably doesn’t apply to Airbnb rentals, hotels and cottages and that kind of stuff. But if somebody was an Airbnb for three months.
00:29:05 Yeah. And I think you did. Yeah, you said there, but I guess there’s no ruling on that. That’s something that you know, it doesn’t have to be decided. You would have to file an [inaudible] application to see whether or not the board would consider it to be to fall under the residential tenancies act and then you would be. You would know your direction after that. It’s
00:29:23 almost better if Airbnb stuff fell under the tenancy act because then I have a process to evict somebody, but your thing, because let’s say someone is renting out an Airbnb for a week and I don’t know, it’s some crazy person. They don’t leave now what? I go to the police, I’m like, hey, some trespassing right now, so now it’s trust, but did the police know that it’s trespassing?
00:29:42 Because my feeling is whenever I’ve called the police before because nick and I have called the police to look into to ask a specific hypothetical hypothetical amount of podcasts. I know, I know we should. We’ve called and said, we have a hypothetical situation. Can you just answer this? And we called the different divisions but the community service guy or did he just called the division called. I didn’t call nine slash 11, but we just called the police station where let’s say we have a rental property and this is happening, and the answer from them was like, hey look, we can’t evict. We need a, we need a court order to go and take some action here. Yeah, it’s not really a police officer. It’s a court enforcement officer that would do the eviction. Anyway. Here’s what we were asking. I don’t know if you’ve heard or have some familiarity with these or not, but um, because someone came to us and said, hey, you know, I don’t use it.
00:30:30 I don’t use a lease agreement. I’ll use an occupancy agreement and with an occupancy agreement then you don’t, you don’t, it doesn’t fall under the landlord tenant board. So then I can get rid of the person without having to deal with landlord tenant board. So, and then we’re like, okay, let’s see if this is true or not. And then we’re like, well how are you? And you were the person. He’s like, oh, well I don’t really know. So called the police. Was that what he said? That’s what we call the police and police were like, look, to your point, without a court order, where does it falls under the tendency, unless they’re trespassing, right? Different. Yeah. Okay. Okay. But you think on an Airbnb, the police would say, okay, they’re trespassing because this is a temporary thing. My feeling is that the police would, if someone was living there, the police would say, Oh, you know what?
00:31:10 This is someone’s house residents. Yeah. Um, I’m going to need some instruction here. And then they back off and you’re gonna end up having to go to court. That’s my feeling. That’s possible. I mean, I think it would depend on the circumstances and also how knowledgeable they, the officer that is there or how far out he wants to go to get involved in something that, you know, you might have to educate the actual officer. Does the answer that you gave me, is that on the tenancy act somewhere that. Yeah, that’s part of it. Okay. So if someone printed that off and said, hey, I have an Airbnb, it’s clearly a temporary use, just like a hotel. So they’re trespassing now it’s because here’s my little agreement with them and they’re supposed to be gone on Tuesday. Okay. So that could work. Yeah. I just always like, I’m not against the tenant.
00:31:53 Like I liked the landlord-tenant board because I liked the process. Like I like there’s an end for if they’re paying, haven’t paid rent. I liked the [inaudible]. I understand there’s delays now and stuff and I appreciate that it’s well laid out but I still, even though there’s delays, if you don’t use those tools that are available to you, you’re just creating an additional delay. So regardless of the delays, there will be an end to edit some point, but if you never started the process and use those farms that are available, then it’s, it’s an open-ended. Okay. You were saying you were kind of. We were talking earlier and you were saying how some landlords you deal with some that have been with Rockstar, maybe some even others, but you’re saying hey, they really kind of are trying to do good by tenants there to help people and they’re trying to do the right thing. But so much so that it’s working against them. Yeah.
00:32:40 Yeah. What I was saying was I’ve really noticed that, um, there’s a, a large number of new landlords that are her so enthusiastic about, you know, taking on this new chapter and, you know, being the best landlord. And that’s so good. It’s really nice to see. And there’s a lot of really, I’m appreciative tenants out there that I hope are able to connect with those types of landlords because then you don’t see any problems. And I know that’s like not business for me, but at the end of the day, my whole purpose is to right the wrong. And if you can salvage the tendency then great because that’s all anybody wants. But what I see is that sometimes when they’re going above and beyond, like, you know, they all new appliances because they didn’t like what they saw when they saw the unit or we changed the pain even though we just painted it because they wanted it this color or you know, um, things like that. It’s so good. It is because what they’re trying to show the tenant is that they appreciate them and they want them to enjoy their home while they’re staying there. Right. Um, but it, sometimes what I see is it kind of sets an expectation, even though they don’t do it for an expectation, it sets an expectation where if there’s a problem because they’ve done all of these things that they assume that it’s going to get worked out with the tenant and they’re really let down when it doesn’t.
00:34:06 So you find yourself coaching them on because more like a business then being.
00:34:11 Yeah. And there’s nothing wrong with what they’re doing. I think it’s just that they always have to keep in mind that if they’re doing those things, it is a business. Um, if I take my car to the carwash and they go way over and they wax it and it looks fantastic, that’s awesome. But if they put a scratch in it, like, you know, I didn’t ask you to wax it. If you put a scratch in it, you still responsible for what’s happened here. And so I think if they, if they want to still do that, it’s great. It really is because there are a lot of really good renters out there. Um, but I think they just need to understand that they haven’t done anything wrong by doing those things, you know, not to let it jade what they’re doing and just understand that it’s part of the, it’s, it’s a business, it’s part of the business. Sometimes you have really appreciative customers and sometimes you have those that you just can’t please. That’s all.
00:35:03 It’s hilarious to me. What you’re saying is ring so true. I mean, there’d be these, these landlords, uh, you know, fortunately or unfortunately they’re not scorned yet. So, you know, nick and I started and I remember when we were one of our first rental properties, I remember at the landlord would mean the tenants would say anything and I would just kind of act like. And I’ve kind of learned when you set that expectation, unfortunately it works against you because then at the littlest issue that goes on with the property, they think it’s a big issue and that you should be taken care of it and if you don’t take care of it, they’re not going to pay rent.
00:35:33 Like start quoting the residential tenancies act and they make them like they’ve done something wrong and in most cases they haven’t. They’ve done more than what they need to and that’s okay. Right? It is. But they just have to understand that if something breaks down, it doesn’t matter what they’ve done, it’s always going to default to the process of what you have to do to to rectify this.
00:35:54 Where’s this coming from? You find yourself working with newer land, a landlords and kind of coaching them to be more stern with them.
00:36:00 Tenants, not really stern. Just I think it’s really just understanding when you’re coming into this whole new thing in your, in your life and you know you don’t really. You haven’t really seen what can happen. It’s just, it’s just really making them understand that what they’ve done isn’t wrong. It’s great, it’s a great way to be. And don’t let the, some bad apple changed the way you want to run your properties, but just know that, um, there’s, you know, there’s solutions out there and it’s, you can carry on, like just carry on, I’m going to be the end of the day. It’s not the end. And, and you know, sometimes I see them say, yeah, yeah, it’s fine. Or other times I see them say, well that’s it. I’m not doing this anymore. And I don’t like I don’t. For me, I see so much and a lot of, some of the problems that come to me in their mind, it’s so big it because they’ve never had anything like this happen to them before. But it can be fixed. They all can be fixed. It’s just a matter of time and the process. And that’s, that’s really all.
00:37:02 Yeah. It’s. So, it’s so funny. Once you’re in this business for a while and an investor will come up to nick and I and I, and they’re like, well, we’re so happy. We found rockstar. We need some help. Like, you’re not going to believe what’s happened to us with our rental properties. We have a tenant who hasn’t paid us for two months, you know, and I’m just looking at them like that. This is your 10 out of 10 problem, you know, you haven’t been around, you haven’t seen it. That’s, that’s nothing could get way worse than that.
00:37:31 Honestly. If that’s the case though, then you say to them, did you serve the end for? And when they say yes,
00:37:36 no, I like, and, and they usually say no because they’re buying into any excuses. If they’re a new landlord and the tenant says anything in the landlord’s like, oh my gosh, let’s try and knock you out. We’ll get next month’s rent next or this month’s rent next month for the next month comes. It comes the same problem happens and they’re just behind.
00:37:56 Yeah. And when I teach the classes again, I always say to them, you know, if you tell them upfront what your policies are about certain things and rent, um, um, barriers. Yeah, late rent payments is one of them. They know ahead of time if they don’t pay the rent, they’re still going to get the notice. Whatever excuse it is, they still, it’s their policy to serve that end for regardless. And I find that when you tell them up front, it helps. They know it’s coming, we’re going to be like, great, we’re going to get this notice. But still it leaves the landlord and control and I just have to continue coaching them to use the tools that are.
00:38:31 Yeah. And if you’re listening to this, the end for notices, the notice for a renter rears
00:38:36 basically gives them 14 days to true up. And then after that you can file an L1, which will get you a date at the tenant board at some point. We don’t know. Well, it’s been 10 years, so we kind of figured this out. Okay. You know what’s funny? You’ve touched on a big point that I was gonna say I, I like a strong believer that communication can fix so much and instead of running from these problems, right, and because some people don’t want to deal with a tenant like the issue comes up, they don’t want to do. They’ll call someone like you instead of even calling the tenant and trying to get more information because they don’t have the full picture. One of the things that we’ve found to be effective is whenever I meet with a tenant to sign a lease, I will always outlined to your point exactly how things are handled.
00:39:21 So I’ll explain to them like, hey, if it’s a minor issue, here’s the, what the response time is going to be. And then I explained also, look, if it’s, if it’s the furnace isn’t working in the middle of winter, that’s like an emergency, let me know. I’m going to jump on it right away. Um, I had an electrical fire up my one of my properties weeks ago. Yeah, it could’ve been really bad. Actually. The, uh, the dryer plug, I’m just ended up starting to smoke and went on fire and got effective over time. The electricians, everything’s fine. It’s just this blood was defective. So luckily they were home. So that’s something obviously that like they were worried for safety and stuff. So we jumped on that. That becomes urgent, right? Yep. Um, and same with, same with renters. One thing that I tell them, I’m like, guys, look, for me it’s, it’s about communication.
00:40:03 So if, if you don’t have your rent on time and then I don’t hear from you, I’m just, I’m going to naturally assume the worst and that’s how I’m going to proceed. So you got to keep me in the loop to let me know and I’ll do the same thing with like, hey, just so you know, here’s the process. This thing still gets filed and stuff. And I tell them like I tried to soften it to them. I’m like, don’t worry about it gives you two weeks, like every, I know you’re going to pay your rent. So everything’s gonna be fine. I don’t make it seem like a big deal. But um, but for me, if they, if they go silent on me, I’m so I give them a heads up that’s like the worst thing you can do. So and then every time, like if there is late rent and they’ve given me the heads up with let me know what’s going on once I collected, whether it’s a week late or whatever the case will be like, hey guys, just so you know, you know, thanks for keeping me in the loop. That’s a really big deal too. I like remind them that they still got to communicate with me as long as I know what’s going on. I’m kind of, I’m, I’m more okay with it. But once they go silent, you’re just like, what the hell? Where are these people? Are they in the country? Who knows what the Hell’s going on?
00:40:55 Yeah. And that’s great that, that works. A lot of times people say, you know, it’s going to be three days late and then it’s five days later and then it’s two weeks. Then it’s, oh, so sorry. So I, I do the end. Oh, you’re still serving the infrastructure. You’ve got to stop this and maybe we can just briefly touch on the end for, because I know you know, you guys have seen so many of them and I see so many of them and it seems like it’s such a simple document, but it’s the most crucial document in the whole process of trying to recover any kind of rent arrears and there are so many times when it’s not prepared and it’s. It gets to the, you know, the either the filing of the hearing or the hearing stage and everything is dismissed because of an error on the end for that is how crucial it is to have that document served properly and when I see and fours where it has the landlord’s name, the tenant’s name, the unit or the address of the property, but no unit.
00:41:58 If you get to a hearing because all that looked okay when you’re filing online. But then you say, well it’s actually unit 11. You cannot get an order for an eviction because a sheriff won’t just go to a property if they don’t have an order for that actual unit. The unit has to be included if it’s upper, if it’s lower, if it’s one, two, three, or four, it has to be in there. Otherwise you are going to be dismissed and you’re already two months into the waiting game, you know, when you’ve tried to get your hearing.
00:42:27 We’ve learned that the hard way by putting just like the incorrect date because you know, you have to get so many days for the servicing of it again, for if you put it in regular mail and stuff like that. Yeah. So that kind of stuff. So. But there is that guide that goes with it. So you just really have to be super anal, you know, where people I think are messing up right now. This is something I wanted to ask you. And then you Ontario Standard lease agreement, you know, it says I’m the tenant and the landlord, there’s a part of it that electronic communication is like loud or you know, it’s okay. Some people are interpreting that to mean that they can serve and force through email. That’s not the case.
00:42:58 Okay. No. Um, because no matter what is in the lease agreement, everything defaults as we always say, everything defaults back to the residential tenancy agreement
00:43:08 in the lead, in the Ontario standard lease, like the, the, the fact that they put that there as messing up so many times.
00:43:14 Yeah. And I’ve, I’ve added that into every discussion that I have with every landlord, um, because their service requirements on that, on those documents that have to be followed.
00:43:25 So when, so when it’s on the Ontario Standard, at least when it says you can communicate electronically, it just means to communicate about random other things, but any of the official documents have to go through just the way they were. Okay. Or there’s something else I wanted to ask, you know about, like kind of vague situations. So for example, we have one, um, it’s an investor that got a call from a tenant saying the basements too cold. So it’s illegal basement. They pay utilities for it. The landlord, it’s a brand new furnace. Uh, the landlord has offered to pay for space heaters if they, you know, but I guess because the tenant pays for utilities, they’re not, um, they’re not wanting to plug in those space heaters because it’s going to take more electricity and they’re starting to complain that the coldness of the basement is infringing on their enjoyment of the property. And so what does someone, you know, what is, when someone makes a statement like that brand new furnace, they kind of, the house is in good order. It’s just maybe a little colder because it’s a basement. What, how do you handle that kind of situation because you know, where this is headed, if they start speaking that kind of language. I’m like, here we go.
00:44:31 So the first question I was, I would ask is do they have any kind of temperature gauge down there so they can see what the actual temperature is because there’s a range of what, um, the, the temperature must be during certain months of the year. And I think the minimum this is going back because I haven’t really looked into this kind of matter in a while, but I think it’s 70. I think it has to be at 70 degrees. Um, so I would first check into that. Secondly, if they’re saying that the space heaters will increase the utilities, how do you know how much. Right. So let’s do a period of time and see what it looks like. Okay. So just like the landlord would have to prove it for marijuana in reverse, you can say, hey, let’s run them for this year and compare them to utilities last year. Yeah. And see what we’re dealing with here. I would start there. Yeah. Okay. So when someone’s making a claim, you have to kind of get it to the point where you can measure it in some way basically. Absolutely. Yup. Yeah. Okay. Okay. What about another one? Someone has an end nine, so an n nine is, um, they’re agreeing to move out, to move out
00:45:34 the tenants notice to terminate.
00:45:37 Okay. So this is saying I’m moving out on this date, here’s the actual form. It’s an end nine form. Yep. What happens? So the question I got is what happens if they don’t move out because the investor or the landlord might have a new tenant trying to move in. What happens? And I. can you go to the sheriff with an end nine? No. You have to go to the tenant board.
00:45:58 No, but um, if I’m not mistaken, I think after the tenant gives you notice that particular notice that there are steps that you can take rate after you’ve been served with that notice to get an order ahead of when they vacate. So you already
00:46:13 haven’t jumped the line a little bit. Yeah. Okay. So if you have an end knife, tenants agreeing to move out and they don’t, don’t have someone else ready to move in, you really need to make sure they’ve moved out. Yeah.
00:46:23 Yes. It’s the same as when they sign the um, I think it’s 10:11. Yeah. Uh, where they signify agreement to end the tendency. So the landlord and tenant, um, have agreed that the tenancy will end on x date. You still need to file that with the board to get an order for that specific reason because there have been circumstances where they have family member moving in or um, someone has purchased the property and it had to be vacated or things like that, um, for personal use and the tenant still in there. And what it does is create a big delay situation where then you’re filing it to get an order at the board.
00:47:03 And then for someone who’s never gone to the sheriff’s, although when you filed that, there’s no, like it’s just you basically. I know there’s a can be extenuating circumstances to anything, but for the most part, the agreements that are signed by everyone, you’re just, you basically you have to get, you get the date so you have to file it and wait for a date a couple of weeks and then you get the order of two to 40. yeah.
00:47:23 Court officers crossing your T’s and dotting your I’s. It really is because then you know that you can that to the sheriff and you’re still. You were just going to say about the process with the sheriff. It’s not automatic, you take it to the court enforcement office, the order for the termination and they schedule a date and time that they’re available and there’s a lot of these things going on so they’re really good, but it could be a couple of weeks.
00:47:48 Yeah, depending on the time of year. I know different backlog before. One thing that I used to do for student property, so renting out a house to a group of students and you know, okay, you’re smiling because I. I’m curious of how wrong I did things because I know I didn’t do it. It was pretty. It was a good but it worked out because what happened is in the past it’s never happened to us Seattle, but in the past some people had. The way the students work is often. They’re funny properties in January for me. Right, so you’re asking the tenants in there in December, you’re like, Hey, are you planning to stay for next year? And most often it’s not a problem, but I have some. There’s a couple of friends that I have that ran into a problem. One year we’ll have 10 classic.
00:48:32 Not It was the friends, you know, again, I’m asking for my friend, it was one of our properties because I’d be bitching and complaining about it the whole time. So, um, so they had, they had a property that wouldn’t, the tenants, he’s like, you know what, I don’t need to let you know, I’m just going to decide after, which kind of sucks because when you’re trying to refill the property you don’t know how many rooms. Right. So it makes it, creates a problem. This was a number of years ago. So what I started doing is when I was signing the tenants to the lease, I would be like, and I didn’t make it mandatory that they signed this for lease, but I said, hey guys, it’s a one year lease. You guys probably don’t know what you’re doing yet. So what we’ll do is we’ll just sign this now if you guys are comfortable with it and just stating that you agree that it’s a one year lease and at the end you guys are moving out and then if we extend it will just sign a new lease. And so I did that. And you know, because I wanted something to be clear so that we didn’t put myself in the same situation if I went to the landlord-tenant board with that at signed at the time of the lease. But the lease wasn’t, it wasn’t a requirement of signing the lease. I would have been thrown right out or I started
00:49:36 chance you think? I don’t know. Are they signing an actual agreement to end the tendency at the end of the term?
00:49:41 Yeah. It was just something that I was like a one-pager that I just put together saying we will all parties agree. I did my best lawyer impression. It made it sound fancy.
00:49:49 That’s interesting. Um, I think that you probably, if you, you might’ve had a better chance of, you use the actual form that you’re supposed to use because they are really sticklers about that. But I like where you’re going with that. Could have just used an n nine. I just want to make it scary to them is the tenants notice, right? Sorry. Sorry. If you’re signing the agreement to end the tendency, the end 11 and 11. Okay. That can be filed at any time
00:50:17 when I was signing the lease because I looked into it and they said what I I want, I thought I read was like you can’t make it a requirement of the lease for them to sign that. At the time we signed the lease,
00:50:28 but if they’re up for it, it didn’t seem to. Anyways. So that’s why I don’t mess around. When it comes to your, you’re dealing with professionals trying to work. The system might see me in high school man, when I needed like six days and late slips in high school. Oh yeah. Here’s another one I’m, I’m asked is I’m accepting. Is there ever a time where you don’t want to accept partial rent payments because some people are concerned if they accept partial rent payments that will be considered to be the new rental amount. So are there situations where you know someone’s not paying rent, they give you a bit of it and you’re like, nope, it’s all or nothing.
00:51:02 No, no. You should always take what they give you because at the end of the day what you’re trying to do is mitigate your losses or we were assuming that at rent amount has been established and this is a one-off thing. This isn’t like they’re giving me $400. Sorry, I didn’t mean to interrupt you there, but they’re not giving me $400 every month when the rent is 600 and I’m not doing anything about it because you can enter into those circumstances where you’ve established that’s the rent, but we’re assuming that there is a higher rent amount right? Established. Yep. So it’s a partial payment. Okay. Yeah. There was no fear there. Now you should take the rent.
00:51:39 Yeah, that’s what we do. Someone’s going to give you money to put up your hand and you take the money. What happens when, um, how long does it take to establish. And you weren’t like you just described like if it’s $600 and you’re accepting $400 were using really low examples here, but six. But anyway, I just threw a number out for dog house in the back of your $400. $400 a bad number one, how long does it take? Is it just like up to the adjudicator? So like if you accepted it for six months, that’s quite some time to judicate him, I’d say hey, that’s normal. Right,
00:52:09 okay. It would be a dependent on the circumstances and the discretion. Yeah.
00:52:14 Yeah. Okay. And then one thing that I always tell people, and I’m never know how out to lunch I am on this comment, I say everyone has to put the lease the lease and they want to put a den Doms to the lease and they want to have their lease, like say everything. I’m like, you know, that’s all fantastic. However, what you have to understand is we’re all governed by the tenancy act here in Ontario. So even if you don’t even have a lease and somebody moves in and you exchange money in exchange for keys to a property, you are now governed by the tenancy act and we’re going to. You’re not going to be able to evict them based on nothing because you have no lease. You have to go through the same process. Am I way off with that?
00:52:50 No, you’re not. They have to. So just to be clear, is it like are you, do you want to know about the additional things they’re adding to the lease or do you want to that they have no.
00:53:02 Oh Tom, what’s your question though? It might be more. Sometimes I get frustrated with like the and now the Ontario Standard lease agreement because I’m like, does it really matter what we even put in these people get so hung up over like, oh, you should really put this clause in because it makes such a difference. Right? Is that where you’re coming from? I’m coming from more the point. It doesn’t matter. I’m coming from the point. Doesn’t matter how creative and good I get at adding these days. It’s all going to be thrown
00:53:26 out anyway because at the tenant board I’m falling under the tenancy act. It doesn’t matter. I put a clause in there saying the tenant must shovel the walkway or the southern law because under the tenancy act they’re not responsible for it. So who cares that I had that closet?
00:53:39 Yeah, they shouldn’t get hung up on it. There are certain things that do you have to go in there like I think someone came to me and they have a pool and I think that there, there needs to be some, you know, additional comments made in there about the fence having to be closed and because it’s safety and insurance concerns and all that kind of stuff. Um, but this, the other things like, as you said, that are covered like clear black and white under the residential tenancies act, even if they put anything contrary, um, it, it’s, it’s not gonna,
00:54:05 it’s not. That’s what I think some people are coming from that I can get. If I get them to agree to something that might be contrary to the tenancy act, they’re going to have to abide by it. Whereas that’s not really the case. No. Yeah, you’re right. You’re right on that. I just sent over. So this wasn’t for a friend, but I own this property with a friend. Um, so the same friend, the uh, actually, yeah, it is interesting, isn’t it? Yeah. No, I know what he’s talking about it. And I only have one friend. Um, so it was a, just a couple of months ago I sent over a lease, not even thinking it was, it was a student property again. They were staying in the property. So I just took the lease from last year. I was like, Oh yeah, I gotta send them over to this change to put their names in, you know, all that type of thing and send it over to them. And then I got it back. They signed it and I’m like, God damn, I totally forgot that there’s a new release. So I put, I just haven’t, I’m not going to circle back. I’m looking, don’t worry about it. I guess I have to worry about it if I have to. A victim or something like that. Right. So it’s a risk I’ve taken. But outside of, outside of that is just basically to Tom’s point is I’m just still covered under the landlord-tenant.
00:55:13 Yeah. But um, if, if you do.
00:55:17 No, it’s not a bad thing because I can go there. He’s like, Hey, you’re stupid. Why did you use this form? You should know better. Go now. Tough luck. And you got to use it before. I know, I totally get it. I’m just not a, I just through the history with these people in this property, I’m actually not really too concerned about it. So it’s a risk I’m willing to take out of my, on my list of stuff to do that, to get that lease resigned is pretty low right now. So that’s what, that’s what I’m looking at it. But
00:55:43 yeah. But they. Yeah. So when the new lease came out, they did say that all tendencies.
00:55:48 Yeah. So that’s why. But that’s my risk. Essentially. My risk is when I go to the landlord-tenant board for anything or just for nonpayment of rent? No for anything, for anything. Okay. So it’s a pretty. What do you mean your risk? Because like they’re going to fall under the tenancy act. No, but just throw it out.
00:56:02 They’re actually being pretty strict
00:56:04 to boat everyone using the new lease because that’s the only way to get everyone on board. Um, and it makes sense, but I mean, what’s the risk to supplement a fine if they want the power to implement a fine, but then they won’t. But I just thought it would get thrown out. So like let’s say these people stopped paying. Not necessarily they could implement a fine. Oh, how big is the phone? It their discretion.
00:56:25 Nice. I’m nice to the guy. Does it matter? Yeah. It’ll help. You’re really going to have to put that. You asked me how much the fines, so you could figure out if it was worth your time. Absolutely. Yeah. I see how your mind is working. I can actually see on another property I recently went through through the Ontario New Ontario Standard lease agreement and it’s not that bad. It’s actually pretty kind of straightforward. I just don’t like that electronic messaging thing. I think most landlords are going to miss that and it’s going to screw them up on the end for. It’s really vague and it’s causing some issues. I want to be clear on cannabis here. Um, is there anything that someone can put in to mitigate usage or growing of plants in a house? A. No. Smoking on the property could help. Yeah. But no, not for sure. It depends on how they’re going to rule on the no smoking of any sort on the property can help.
00:57:17 But even if they decide smoking, I mean that’s just human rights in Canada. No, you’re allowed to impact someone else though. Yeah, that’s right. If it impacts someone else, but, or if it’s causing damage. Right? Because there’s, if there’s five people living in the house that are heavy smokers, you will see the damage. I’ve seen it. It’s nasty. It’s like dripping yellow spot houses like that. Yeah. One with a friend with Tara windows. Okay. So, um, okay. So you can say no smoking, but if it’s a single family home, no tenant upstairs downstairs, you know, it’s just a single family home and put the no smoking. You can still put no smoking and. But then if they start smoking you’re going again, you’re going to know because you’re going to mitigate your losses by doing property inspections on a quarterly basis and then you’re going to be ahead of it and then you’re going to say, you know, it’s in contrary to the terms of the lease agreement and see where it goes.
00:58:07 Like it depends. This was in it. You at least have a chance, but they could come back and say, well tough, right? Like if I’m allowed to provide it that the second tenant in this particular property, because we’re talking about a to 10 property is not complaining. You know, they’re fine with it. Then you, it’s kind of like saying no pets. No. Yeah. Doesn’t say that. I know. The only way that you can have any recurring course over someone having pets in the unit is if it’s causing damage and then you’re not really addressing the pet, you’re addressing the damage that the pet has caused and it has to be rectified so they still can’t allergologist. Okay, so you can’t say no disturbing. The reasonable and bring reasonable enjoyment could be a reason not to have it. If someone has an allergy, if you have an upsell, if you have a duplex and someone next door, it’s pretty extreme for them to say you have to get rid of that pet because of an allergy, so that that would be a long one. That would have been. If they’re moving before they move in, I say, hey look, I’m going to have a situation here. This person’s clearly her daughter that’s allergic to cats and we can’t have the cat in there because of this person. Tricky one. I’d have to pull like precedent cases to see what that looks like. Yeah. Okay, so if you can get. It’s worth a shot conversation with shot you tell, but then you sold the smoking
00:59:22 is worth a shot to you. I just thought the smoking was exactly like pets like you can you can you advertise? No Smoking,
00:59:31 you know? Um, I would say sure. Advertise. No Smoking. Take put it in your lease. See what happens. It’s a shot. It’s like you said, oh, that from the beginning, from the onset. They knew when they came in, you know, here’s they’ve, you know, they’ve acted in contrary to the terms of the lease and at least you have something if you have nothing. And then say, I don’t want them smoking. You think you’d be further ahead? Yeah. So basically what I’m hearing is maybe in six months we’re going to have some precedent center around this, right? Because then you’ll be able to come and you’ve been to the dealing with the tenant board and the tenancy act around this point. But right now it’s better to put it in the. Not put it in if you don’t want smoking. That’s what I tell everybody. Okay.
01:00:12 Kelly, how do people find you? Uh, you can find me by my email address and I’ll believe you’re giving out your email address for it. It’s khawkes@Veranova.ca. khawkes@Veranova.ca. Thank you for this. We’ll bring you on in a few months. Nick, anything else? Nope, we’re good. Thanks. Thanks. Hey everyone, it’s Tom Karadza. Uh, so as you, as you just heard, Kelly is a great lady. We’re so fortunate. She teaches a class here at Rock Star for Rock Star members. He does that regularly, so we are forever grateful for that. Um, she is also spoken at our past your life, your terms, events. So that’s the type of person that we’re bringing out to share information. If you are listening to this and you want to check out our event on February second, you can go to your life, your terms, sorry, your life, your terms event.com to check out all the details at Saturday, February, second at a banquet hall, Mississauga.
01:01:34 I think it’s the Veranova banquet hall or banquet center. It’s all in that site yourlifeyourtermsevent.com. Look, we’re doing all of this to try to help us live life on our terms that’s includes myself and nick, but everyone we work with, this is our full purpose and goal to try to share information that we can all leverage to help us live life on our terms. So hopefully you’re taking some value from this. Thank you for listening. We appreciate it. If you have any feedback for us, you can always send it to firstname.lastname@example.org. Till next time your life, your terms.