The Residential Tenancies Act provides that Tenants have the automatic right to renewal FOREVER.
That’s not good if you are the Landlord.
If your property is subject to “rent control”, that is, it was rented out residentially prior to November 2018, then, you are likely way behind current rents.
The current monthly rent might be $3,000.00/month, but your Tenant may only be paying $2,000.00/month. And, they’ve been there for 15 years and they will likely be there “forever” because they cannot afford to move anywhere else.
So, let’s assume that you get a little bit of a break. They move out, and now you are ready to rent to someone else.
Who are you looking for?
Tenant short of Cash
Naturally, most would say get someone who can afford the rent, someone who is not broke! But, aren’t you really looking for someone who eventually cannot afford the rent, so, they will have to leave. This means you might ideally be looking for someone who is short of cash. If they cannot afford to pay, then you have the right of eviction.
Student
The advantage with a student is that at some point they will be finished their studies and have to move out. This is great for you since you will be able to rent to another student at increased rates.
Elderly
Here, I am suggesting someone very old, 90 years plus. They can’t live forever. So, they will move out and you can then rent to the next elderly person.
Comment
This does appear to be somewhat far-fetched, but, the difficulty is that as a Landlord, you are stuck with the RTA.
Brian Madigan LL.B., Broker