Right off the bat want to let everyone know I have nothing against landlords. Everyone is looking to make a buck anyway they can. It’s a dog eat dog world so I’m sharing my story just to try to inform people of what most probably don’t know. There is nothing wrong from trying to get rent from people if you are a reasonable landlord so all the more power to you.
With the rental market like it is now it’s my pleasure to share my story with fellow tenants. Vacancy rates are very low in many places and it can be tough to find a nice place to live.
My advice is also timely because in Toronto, Alberta and BC many landlords are either in or soon going to be in HUGE financial trouble.
1. The Toronto Condo Market Going To Crash
In Toronto prices are probably going to crash or at least freeze, so a lot of landlords who were cash-flow negative and hoping to make money on appreciating prices will be freaked out soon. When prices freeze and then drop expect a real spectacle as landlords look to get out as fast as they can.
It will be like Bitcoin last year when people bought at 19k and then saw prices go to 16k and the sky was falling fast! The Toronto condo market will be like that, it’s just a matter of time. This is why I am not buying anything.
Ford and his government are useless. What the hell does "helping people who are priced out" really mean? It sounds like cover for the donor/developers to run rampant and cut down every tree in the GTA to me.
2. It Will Take Years For Alberta To Recover, Maybe Never
Alberta looks to like a real train wreck since Trudeau is purposely destroying the oil industry.
3. Bye Bye BC Real Estate
BC will be cooked soon too because the NDP there are insane and want to ruin the housing industry (at the expense of landlords and tenants).
NDP should just called themselves the Communist Party and be honest.
Basically most landlords are going to be feeling some major heat in 2019-2020. I can see the divorce rates rising and the anti-depressant sales rising. Just like what has happened to many tenants the past five years, especially here in Toronto.
30% Under Market Rent, and Locked in For 5 Years!
My landlord was some Joe Nobody but the property was really convenient for my work. Close to the subway, shopping and parks for my dogs. I paid high rent for the first 3 months, just like everybody else.
I started getting these calls saying an “appraiser” was coming and I should keep the pets locked up and the place as clean as possible. Okay, no problem. I wasn’t home but put the dogs in the smaller bedroom.
The problem started a couple weeks later when there were two more “appraisers” coming. I called and the landlord said he didn’t get a high enough number on the first company and needed to keep coming.
After the next two, he said he wanted to come paint and beautify the place. Enough was enough and I called him.
I told him I was tenant aware of my rights and what was happening was ‘harassment’ and I would file at the Landlord and Tenant Board if this continued.
This led to an honest discussion.
You will be amazed at how landlords change their behavior when you let them know you are knowledgeable and will take them to the Landlord and Tenant Board.
My landlord told me he was trying to “re-finance” the property and if he couldn’t he would have to sell or even the bank might take it as a foreclosure. He said he was going to try to sell it fast for a good price while the market was good.
He asked me to “be a good renter” and help him out by allowing inspectors, appraisers, real estate agents and potential buyers to come at any time.
He asked me to allow him to do some renovations paid for on his Visa card including painting and updating the bathroom.
I told him……..NO.
Right to his face.
No. You are not my boss. NO!
He was taken aback.
When I came here he never warned me of his precarious financial situation so why should my life be shattered due to his non-disclosure?
I told him I would not accept this harassment and would not let people in and file a complaint at the Landlord and Tenant Board which I would win.
He asked me “what do you want? I need to sell!!!”
I told him I wanted a new five year lease at 30% less than market rent in the area for a similar type of property.
As a responsible tenant I knew that if I have a lease the new buyer or bank could not evict me.
This would also give me security (because the place was awesome) and the 30% drop in my rent would allow me to do some extra travel and help pay for the car restoration that was on my mind.
I told him either do this or you will get 6 months of Hearings and non-cooperation from me and end up sinking in a financial cesspool.
He asked what he should say to potential buyers who might want to buy a vacant place.
I told him to sit down and began educating my landlord on how business works.
I explained:
Option 1: Play Ball With Me and Follow My Orders As An Educated Tenant and Save Yourself
-Your buyer is going to be an investor, the market is still good now (but who knows in six months’ time)
-I will allow showings, inspections, renovations and keep the place clean
-If I’m home I’ll play “super nice” and act like the cowardly idiotic tenant most investors want
Option 2: You Don’t Play Ball and I Destroy You and Your Family Financially
-If I don’t play ball you won’t sell, I will make sure of it.
-If you don’t play ball I will take you to the Landlord and Tenant Board and still not move
My Landlord Said He Would Do Whatever I Wanted
I said “I want a win-win situation so we sign a new 5 year lease and rent that is 30% lower than the market. You can just tell potential buyers (or the bank) I’m a great long term tenant.
My Landlord Was Stressed
He was sitting on the sofa trying to figure things out when I walked over to him. I’m a much more physically imposing person than this guy, and I held his shoulder and said:
“It’s up to you, do you love your family? Do you want to be a poor daddy who can’t afford toys or tuition for your kids?”
“Make the decision, daddy. Do you love your children, you wife? Do you care about your family or your pride.”
He was thinking and I told this loser to "MAN UP OR GET OUT OF MY HOME!"
I raised my arm to looked at my watch and said "YOU HAVE 60 SECONDS TO MAKE YOUR DECISION!"
"DO YOU WANT TO BE BROKE AND HAVE YOUR CHILDREN LIVING ON THE STREETS OR DO YOU WANT THEM TO GO TO TOP SCHOOLS AND BE SUCCESSFUL AND SAFE?"
The situation was really tense for a while but I'm a large and strong guy and this out of shape guy would be an easy beat down if needed and even if he had a gun I have bear repellent and would spray and blind him before he had a chance to aim.
AND THE REALITY WAS I WAS HELPING HIM HELP HIMSELF FFS!
Landlord Agreed To My Ideas
It was up to him and it was my role just helping the guy make the right decision. I had prepared the new Ontario standard lease and we signed right then and there.
What Happened Next?
The market if crazy hot for condos and the place sold in 2 weeks.
My new landlords live in China and are just happy to have a very excellent tenant like who gives post dated checks.
And I’m secure and saving huge money.
If I want to move it will be easy to sub-let this place and make some $$$ at this rent rate.
The lesson is:
1. If you sign a lease you don't have to move even if your landlord sells.
2. As long as you pay the rent and don't go crazy trashing the place or murdering other tenants you are safe.
So if your landlord is "selling" the property you are in a position to bargain.
Know your rights and protect yourself financially.
In exchange for your cooperation, demand a new lease and cheaper rent so the next landlord will have to stick with it.
If the landlord wants to move in, have a family member move in, or sell the place they must give you an N12.
The Rules for the N12 are:
If the tenancy is a fixed term tenancy, such as a one year lease, a 3 year lease, a 5 year lease, the termination date on the N12 must coincide with the last day of the lease.
