Help: Tenants not paying rent
For the last four months, only one post dated cheque went through. The cheque for March bounced, but the tenant paid by cash a few days after March 1. The April cheque was good, but the May, June cheque all bounced. I served a N4 notice on June 1st for a move out date of June 15 unless they pay the May, June and July's rent. The tenants met with me on June 14 and paid the rent for May only.
My questions are
a) Am I screwed because the lease agreement states that the landlord collected a deposit equivalent to the first and last two month's rent? I only realize that now it's illegal to collect more than first and last month rent as deposit. But I did not force this on the tenants. It was the tenants who offered.
b) Am I also screwed because in the N4 form with a termination date of June 15 that I asked the tenant to pay for July's rent as well? Technically I haven't cashed the July cheque yet so it's not due as of June 15th.
It's such a shitty situation. As landlords, we invested significant money in the property hoping to have tenants who pay their rent on time. We honestly did everything to protect our investment but this happens. Now I realized what a painful process it is to terminate a lease and get an eviction even if tenants don't pay their rent.
Any suggestions or advice would be appreciated.