Bad tenants can be really expensive
Failing to repair old water pipes can result in expensive insurance increases.
Condo owner lost her unit due to bad tenant
York Condominium No. 187 v. Sandhu
Ontario Superior Cort of Justice
Court File No: CV-18-594027
Date: 14 August 2019
Ms. Sandhu leased her unit to a tenant who did not live harmoniously with his neighbours. The tenant, Mr. Saadilla, was in constant conflict with building management and ultimately sued YCC 187 for over $5 million.
Mr. Saadilla’s claim against YCC 187 failed. When it did, the by-laws of the condominium required that any expenses paid by YCC 187 to defend the case, including its legal fees, would be charged to the common expenses of Ms. Sandhu’s unit. If she didn’t or couldn’t pay the expenses, the same by-laws required YCC 187 to place a lien on her unit.
On September 28, 2016, six days after Mr. Saadilla filed his Statement of Claim, Mr. Casalinuovo, the corporation’s lawyer, wrote to Ms. Sandhu to warn her of the danger.
Ms. Sandhu and her family did not act upon Mr. Casalinuovo’s warning. Shortly after having received the letter, Ms. Sandhu’s son, Balhar Singh, swore an affidavit which supported Mr. Saadilla’s claims against the corporation. In his affidavit, Mr. Singh described himself as the administrator of his mother’s unit and Mr. Saadilla as a model tenant.
Mr. Saadilla’s claim failed miserably. Justice Penny dismissed the action and ordered that the costs of the proceedings be included in the common expenses for Ms. Sandhu’s unit. Mr. Saadilla appealed that decision and lost again. The costs of the appeal were also added to the common expenses of Ms. Sandhu’s unit.”
https://bit.ly/36bVHcO
Take the time to read this court decision.
Whenever an owner gets a letter from from their corporation’s lawyer, they should immediately get legal advice from a lawyer who is experienced in condominium law.
This woman lost her condo unit because she didn’t have a clue about what condo ownership entails and she did not realize that renting a condo unit to a bad tenant can be extremely risky.
A few years ago a young man of limited means, rented a condo in the Yonge-Sheppard corridor. He gets a “special needs” dog. When he was not home, the dog constantly barked. The neighbours complained.
He gets letters from management. He ignores them. The condo corporation takes the condo owner to Superior Court. The corporation wants the tenant and his dog evicted plus their legal costs. The tenant (self-represented) goes to court to fight his eviction. He can’t find a rental property for him and his barking dog at a price he can afford.
The owner finally figures out that he is in trouble. He hires a lawyer who takes the tenant to the Tenant Landord Tribunal to force an eviction. The lawyer also tries to limit the corporation’s legal costs which are approaching $50,000.
I estimate that the landlord was out at least $60-70,000 before he got rid of the tenant.
The lesson here is simple. Hire a competent property manager to find you a qualified tenant and manage your property. Make sure that the condo corporation has your manager’s address and phone number.
You will pay a bit more but you won’t lose everything.
—H. Marshall
Toronto homeowners fight to evict tenant ‘taking advantage’
of Covid-19
Global News
By Albert Delitala 17 May 2020
A Toronto couple says they are growing frustrated after a months-long fight to move back into their townhouse and evict a tenant who stopped paying rent and — they believe — is taking advantage of restrictions around COVID-19.
Edward and Yamile Koch moved back to Toronto from Chicago in January after Edward lost his job.
They planned to move back into their townhouse, located near the waterfront in Etobicoke, by the end of January. Weeks before the move, they said they heard from a paralegal representing the tenant who said she planned to challenge the eviction.
In February, Ontario’s Landlord & Tenant Board ruled in favour of the Koches with the tenant ordered to move out by March 31.
Around the same time, the tenant deposited a cheque from the couple equivalent to one month’s rent for compensation, a legal requirement when landlords intend to evict in order to move back into a home. She also stopped paying rent and broke off communication, Edward Koch explained.
“We’ve tried on many occasions via email, via text to find out where things stand, why she’s not paid, when she’s going to pay and we haven’t heard anything,” he said.
Koch said he believes the tenant is capitalizing on the COVID-19 lockdown to not pay rent.
“For them to stop paying rent without any rhyme or reason prior to the impact of COVID just feels like they’re taking advantage of the situation,” he said.
Global News attempted to speak with the tenant but she did not answer her door.
The Ontario government suspended most in-person landlord and tenant hearings and enforcement of evictions in March after issuing an emergency order to contain COVID-19, leaving the Koches little recourse for now.
“I feel really upset,” Yamile Koch said.
In an email to Global News, a spokesperson for the board, Sarah Copeland, said in situations like this, if both sides cannot come to an agreement on their own, the landlord “may wish to seek legal advice.”
On the suspension of hearings and enforcement, she said, “We recognize that this is a challenging time for everyone and we are appreciative of the patience and cooperation of stakeholders as the situation continues to evolve.”
Meantime, Koch said he and his wife have already spent more than $20,000 on temporary housing and other expenses.
“We appreciate the attempt to safeguard the tenant from homelessness, but you’ve now replaced homelessness of a tenant with homelessness of a landlord or homeowner,” he said. “It just doesn’t make any sense to us.”
https://bit.ly/2zaEQe5
I love Sarah Copeland’s advice to the owners: the landlord “may wish to seek legal advice.” True but yet another expense the owner must absorb.
On the suspension of hearings and enforcement: “We recognize that this is a challenging time for everyone and we are appreciative of the patience and cooperation of stakeholders as the situation continues to evolve.” Patience and cooperation? Those are not the words that I think would comfort an owner that is being ripped off.
—H. Marshall
$60,000 worth of fentanyl seized in Lethbridge Airbnb bust
Lethbridge News Now
15 May 2020
Lethbridge Police Service (LPS) made a significant drug bust Thursday.
The Crime Suppression Team was investigating suspected drug trafficking activity of two men renting an Airbnb on the 1600 block of 23 Street South.
A warrant was executed and both suspects were arrested without incident. Police seized 300 grams of fentanyl, said to be worth approximately $60,000, as well as $9,400 in cash.
Andres Joseph Connors, 31, of Calgary, and Robert Forrest Watt, 32, of Calgary, are charged with possession for the purpose of trafficking and possession of the proceeds of crime over $5,000. Both suspects are remanded in custody and are scheduled to appear in court on July 24.
https://bit.ly/2TgsDvh
That drug dealers and pimps rent short-term rentals is not that unusual. They rent hotel and motel rooms too.
The owner of this condo was lucky that these alleged drug dealers were busted before anything serious happened.
—H. Marshall
Condo Smarts: Claims history affects insurance cost
Times Colonist
Tony Gioventu 13 May 2020
Dear Tony:
Our Langley condo renewed our insurance policy in April and the maximum amount of coverage we can obtain is 70 per cent of our replacement value with a $500,000 deductible.
I admit it’s older building and have some maintenance issues ahead of us, but the dramatic switch from last year’s policy at $86,000, full replacement and a $25,000 deductible to a policy that is costing us $284,000 is horrifying to our owners.
Not only has this resulted in a 35 per cent increase in our strata fees but it has left us underinsured, with a deductible amount that no one will ever be able to cover, and a guarantee that we are essentially self-insured.
On the news of the insurance renewal, a sale collapsed last week, sending us into grave concerns that people won’t be able to renew mortgages. Our greatest concern is the loss limit. If we are only covered for 70 per cent of claims, and we have a $500,000 deductible, what is the point of insurance?
—Colette W.
Our industry has been experiencing an extraordinarily hard insurance market. The brokers who represent us take our policy along with our risks to the insurance industry to essentially negotiate your policy on your behalf, often with multiple insurers each taking a portion of the risk.
The insurance industry has seen a substantial increase in world claims and demands, significant increases in B.C. claims and losses on the investment markets. They are facing an aging housing stock that is prone to increased claims, and a reduced number of insurance companies are willing to assume the risks of the total loss and coverage for strata corporations in B.C.
Remember when an insurer covers your policy, they are not covering the likelihood of a leak damaging several units, they are covering the complete replacement value of your property, liability insurance, and perils such as water escape, flood, fire and our increasing earthquake risks.
Strata corporations in apartment-style buildings have a much higher risk of claims associated with multiple losses because of the proximity of all units, and the limits on containment.
Yes, the increases are dramatic. However, as a broker and insurer, they are looking at your exposure to risk. Your claims history plays a significant part in evaluating your risk, along with your subsequent actions.
Your property has experienced multiple claims since 2015 relating to water escape from older piping and your community has not approved the replacement of your piping that was identified in a 2017 report. Unfortunately, at this time of a difficult market, your strata corporation is likely in the highest risk category.
A 70 per cent loss limit does not apply to all claims. The loss limit applies to the total or negotiated loss in the event of damages that result in the event of demolition of your property. A claim that would amount to five per cent of your total value would be still fully covered, subject to any deductible amounts and limitations of the policy. Water and fire claims over $1,000,000 are not unusual in apartment-style buildings, so you can safely assume those would still be covered. With a high deductible rate, it is critical that you educate your owners on their responsibilities and liabilities.
Encourage all owners to purchase home owner insurance to cover the maximum amounts possible. Remind owners they could be liable for a claim if the loss is their responsibility as a result of an action or failure in their strata lot. Provide owners with a written reminder to run appliances such as laundry and dishwashers only when they are home and identify any other activities that may increase your risk such as barbecues on balconies, smoking, home alterations and upgrade installations that include water connections.
Most important, your strata corporation must renew your plumbing systems. You run the risk of no coverage available in the future if repeated claims relating to a failed building component are not remedied.
https://bit.ly/2WDb8Hy
Tony Gioventu is executive director of the Condominium Home Owners Association.
Tony knows more about this condo than we readers do.
The statement “Your property has experienced multiple claims since 2015 relating to water escape from older piping and your community has not approved the replacement of your piping that was identified in a 2017 report.” says plenty.
—H.Marshall