Real Estate

Return of Rent after house uninhabitable

  • Last Updated:
  • Mar 10th, 2020 7:57 pm
Newbie
Mar 3, 2020
4 posts
1 upvote

Return of Rent after house uninhabitable

rented out house. tenants paid 12 mths in advance.
8 mths in they caused a flood (left bath overflow)
They admitted they were negegent
House needs months of revovation.
They are requesting the rent for this period (4 mths).
Landlord agument is that caused the event where by they
cannot occupy the hose, so they are at fault so no refund.
The tenant intends to go to the Landlord Tenant tribunal.
Is there any resident for this situation.
What is the likely outcome of the tribunal.
14 replies
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
They should be jailed!
Deal Guru
User avatar
Mar 23, 2008
13006 posts
10009 upvotes
Edmonton
barry1967 wrote: rented out house. tenants paid 12 mths in advance.
8 mths in they caused a flood (left bath overflow)
They admitted they were negegent
House needs months of revovation.
They are requesting the rent for this period (4 mths).
Landlord agument is that caused the event where by they
cannot occupy the hose, so they are at fault so no refund.
The tenant intends to go to the Landlord Tenant tribunal.
Is there any resident for this situation.
What is the likely outcome of the tribunal.
You give no location, so...

If you're in Ontario (which seems to be the default), the 12 month "deposit" was illegal, and the landlord may have to refund if it ends up going to the LTB. There's another thread in here with "International students" in the title.

As far as the rent rebate, that's hard to say. It might depend on how much proof there is of the tenant's "negligence". Is it in writing, was it actually negligence or did the tub over-flow not work properly, etc.

C
Newbie
Mar 3, 2020
4 posts
1 upvote
the tenant voluntarily offered to give 12 months rent in advance
we did not ask them
this was written on the lease agreement
Newbie
Mar 3, 2020
4 posts
1 upvote
tenant said he was responsible and infront of witnesses
I am in Totonto
Deal Addict
User avatar
Jan 2, 2012
4596 posts
3099 upvotes
Toronto
barry1967 wrote: the tenant voluntarily offered to give 12 months rent in advance
we did not ask them
this was written on the lease agreement
Yes but that was pre-paid rent, NOT a damage deposit. The LTB may have a big problem with you holding back RENT deposit to pay for damages as a self-imposed penalty.

They may side with tenants that they should not pay rent for an uninhabitable home, and that you need to pursue them in small claims court to go after damage losses specifically.
Newbie
Mar 3, 2020
4 posts
1 upvote
the damage will be covered by my insurance.
However the rent is not covered. Can I pursue the tenants for the lost rental income
Deal Addict
User avatar
Jan 2, 2012
4596 posts
3099 upvotes
Toronto
barry1967 wrote: the damage will be covered by my insurance.
However the rent is not covered. Can I pursue the tenants for the lost rental income
Pre-paid rent is supposed to protect you if the tenants try to cancel the fixed-term lease agreement early, in which case you could keep all the rent. This is entirely different since the home is uninhabitable (even if they were the cause). They are not cancelling the lease, they are being forced out the home due to an accident. If it takes 3 months to fix home and get new tenants in, would you be justified to keep 4 months rent? It seems like a very unique situation. You might want to talk to a paralegal or lawyer before going to LTB hearing to know if there is any precedent and what likely outcome you're facing.

Logically the LTB should see the tenants directly caused the loss of rent, and let landlord keep the rent payments. However LTBs are usually not logical and side heavily with tenants.

If the LTB sides with tenants that rent needs to be returned, then you'd need to sue them in small claims court for all losses you suffered (i.e. loss of rent, insurance deductibles, etc).
Deal Addict
Jan 13, 2014
2907 posts
2135 upvotes
Calgary
This is where you need to get rental insurance on the property. The tenants didnt live there. why should they cover your rent?
Member
Nov 20, 2007
350 posts
18 upvotes
Do you not have coverage for loss of rent via insurance? Should be typical in a rental scenario like yours.
Sr. Member
May 27, 2013
632 posts
60 upvotes
Do u have something in writing that its inhabitable? Is that needed for the tribunal?
barry1967 wrote: rented out house. tenants paid 12 mths in advance.
8 mths in they caused a flood (left bath overflow)
They admitted they were negegent
House needs months of revovation.
They are requesting the rent for this period (4 mths).
Landlord agument is that caused the event where by they
cannot occupy the hose, so they are at fault so no refund.
The tenant intends to go to the Landlord Tenant tribunal.
Is there any resident for this situation.
What is the likely outcome of the tribunal.
Deal Addict
Feb 16, 2018
1292 posts
1311 upvotes
Others have said they prepaid the rent which is not illegal and that prepaid rent is not a rent deposit. Your only option here is to get advice from the landlord tenant board, which heavily favors tenants. I have no idea how they would decide in this situation but my gut is telling me you are going to have to give it back and sue them in small claims court because you cannot withhold their rent payments in a place they could not rent, even if it was their own fault.
Deal Addict
Nov 16, 2011
1535 posts
1256 upvotes
Hamilton
The whole issue is being needlessly complicated by the fact that the tenant prepaid the rent.

If the tenant had not prepaid the rent but instead paid monthly, and the home became not habitable for whatever reason ( their fault, yours or nature ) would you expect them to pay you the last 4 months of rent ???

Of course, the answer is no.

So give them their money back ( be thankful they are not asking for interest or other damages ) and carry on with getting the home repaired by your insurance.

And then be thankful that you can rent it for much higher rent afterwards ( as long as the tenant does not know their rights ),
Deal Addict
Jul 29, 2006
4253 posts
1078 upvotes
if you have the correct insurance, they usually have rent insured as well.
Deal Addict
Oct 22, 2016
1047 posts
987 upvotes
Comox Valley
If your tenant has caused this problem. Obviously go through your insurance.
For any out of pocket cost, sue your tenant.

Have a discussion with your insurance company, on what will be covered. Once you know that take your tenant to court for your remaining loss. Your tenant will back off in asking for the 4 months rent money paid.

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