Question for fellow landlords

[Tron_fdc]

So I had a tenant sign a 6 month lease 2 months ago, then one day he turns around, and gives me 10 days notice (June 20th to be exact) that he was moving out July 1st. We agreed that he would pay the July rent, I would keep half his damage, and I'd let him out of the lease. Well lo and behold, his rent cheque bounced. I also haven't cashed his damage cheque, because I'm sure that won't go through either.

So now I'm wondering what my rights are? Small claims? Collections? I don't want to be a total a-hole but I'm getting sick of renters continually trying to screw me. The place is rented August 1st so I'm not too worried about it, but I want to recoup my $1500 rent that we agreed on.

Any suggestions?

[You Need a Thneed]

http://www.servicealberta.gov.ab.ca/...ds_Tenants.cfm

Looking there would be a good start.

http://landlord.landlordandtenant.or...andonment.aspx

Another one theat deals specifically with your case.

http://www.qp.gov.ab.ca/documents/Acts/R17P1.cfm

Tenant Act in Alberta - Part 26-27 is what your aare looking for.

[Bring_Back_Shantz]

At the very least try to cash the damage deposit cheque.
Then at least the guy will get hit with another NSF charge.

Small potatos, but at least you get to stick it to him a little.

[Boblobla]

Originally Posted by fotze

Why didn't you cash the damage deposit? Are you not allowed to, I have no idea, just asking.

I thought you were supposed to. All the damage deposits I have ever given have been cashed.

[CaptainCrunch]

I thought that you could report bad renters to the credit bureau. At least that way his bounced check and bad tenacy will destroy him for 7 years.

[photon]

For the cheque that you do have, don't just cash it, go to the bank it's written from and try to get it certified. That will tell you if there's $$ in there to cover it or not. I think there's a fee to get it certified, but if you can't do it there's no fee.

And if it can be certified, then it is and you are guaranteed to get the money.

In the future, security deposit cheques have to be cashed because you have to hold the security deposit in a specific way, check the landlord tenant act on how you're supposed to keep that money.

Yeah, people complain about crap landlords, but I can understand how some become so terrible.

I just had a tenant abandon a property.. unpaid rent, left the door open and left the place, bunch of their stuff left behind for me to deal with. Great eh?

Oh and the best part? They stole my fridge.

[You Need a Thneed]

Originally Posted by photon

In the future, security deposit cheques have to be cashed because you have to hold the security deposit in a specific way, check the landlord tenant act on how you're supposed to keep that money.

Security Deposits must be held in an interest bearing account. Here's a table of the minimum interest that's required to be paid on Security deposits:

http://www.servicealberta.gov.ab.ca/1033.cfm

[4X4]

For security deposits, always cash the cheque and just hold it in a separate account designated for holding deposits. Make sure you note on the lease that the deposit is non-interest bearing.
I've never heard of someone not cashing the security deposit. The whole purpose of it is to give you security for situations just like this.
I've never rented to anyone that didn't have their first month and a full deposit either in cash or certified cheque or money order. No funds, no keys.

As for your dilemma, you can file a statement of claim against the person. I've never had to do it, but I've threatened it before. You can get the forms off the internet from the Court of Queen's Bench. Fill it out and swear it in front of a notary public and then take it to the Court of Queen's Bench and file it. The fee is $50 or $100 or something. Then a sheriff serves the document to the other guy and then... Ummm.... Like I said, I've never actually had to do it.

In the future, whenever renting to someone, always take two pieces of ID so that you're sure you've got the real name, and always, always cash the deposit cheque.

As for your horror story, pho, I've had a few like that over the years. The first two times I got burned by natives, so I decided not to rent to them anymore. The next two times were by white people, so it's not like you can racially profile your tenants.

Old, young, black, white, native, it doesn't matter. They're all good and they're all bad. Lots of ID, full deposit, regular drive bys. If you see the grass hasn't been mowed or you see any kind of red flag, give 24 hours notice to enter the premises to "check the furnace". If the house is getting trashed, you prepare for battle.

Landlording sucks, but equity gain is great. Too bad I don't have any of my own properties. I'm a pro at this for my family.

[Teh_Bandwagoner]

Yeah I always cash in the DD cheques immediately. With my first tenants, some poor judgements and inexplicable judgement on my part had me return half their DD to them, which left me in the hole for that amount. Suffice it to say, I will never prematurely return a DD ever again lol.

At the worst, you could probably sue for the DD amount and 60 days of rent (minimum notice according to the tenancy act), but not sure if it's worth it. Can a collection agency be hired? I'd like to know how this pans out in case I run across this situation as well.

[4X4]

Originally Posted by You Need a Thneed

Security Deposits must be held in an interest bearing account. Here's a table of the minimum interest that's required to be paid on Security deposits:

http://www.servicealberta.gov.ab.ca/1033.cfm

No they don't. At least, not on a Residential Tenancy Agreement. A lease might be different, but I never pay interest. It's always noted on the document that it's non-interest bearing.

[fredr123]

Residential Tenancies Act, RSA 2004, c. R-17.1

Amount of security deposit
43(1) A landlord shall not require a tenant to provide a security deposit that is greater than one month’s rent under the residential tenancy agreement or that is greater than the rent that would be payable for one month under the residential tenancy agreement if the rent were payable monthly.
(2) A landlord shall not require a tenant to pay an increase in a security deposit.

Trust account
44(1) A landlord shall
(a) deposit each security deposit consisting of money received by the landlord into an interest‑bearing trust account at a bank, treasury branch, credit union or trust corporation in Alberta within 2 banking days after receiving the deposit, and
(b) ensure that the security deposit remains in trust until it is disposed of in accordance with this Act and the regulations.

Interest on security deposit
45(1) Subject to subsection (2), a landlord shall pay annually to the tenant interest calculated at the prescribed rate on a security deposit consisting of money.
(2) If a security deposit consists of money, a tenant and the tenant’s landlord may agree in writing that the interest on the security deposit shall not be paid annually and in that case the interest shall be compounded annually and be paid to the tenant on the expiration or termination of the tenancy.
(3) A landlord is entitled to retain any interest and profit resulting from the investment of a security deposit in excess of the amount of interest payable to the tenant under this section.
(4) If a landlord and tenant agree that interest is to be payable under this section at a rate higher than the rate prescribed pursuant to this section, subsections (1), (2) and (3) are deemed to refer to the higher rate.

What rate do you have to pay? Check the Security Deposit Interest Rate Regulation:

Interest rate after 2004
2 For the purposes of section 45(1) of the Residential Tenancies Act and section 50(1) of the Mobile Home Sites Tenancies Act, the annual rate of interest for 2005 and each following year is the rate that is 3% below the rate of interest that is in effect on November 1 of the previous year for cashable one‑year guaranteed investment certificates held or offered by Alberta Treasury Branches Financial.

[photon]

Actually I'm pretty sure you do, the interest rate has just been 0% recently because rates have been so low.

EDIT: Lol, 8%!

[4X4]

Huh... I wonder how many dozens of dollars I've ripped people off for over the years...

[You Need a Thneed]

Originally Posted by 4X4

Huh... I wonder how many dozens of dollars I've ripped people off for over the years...

Well, between 2002 and 2006, the minimum interest required was zero, so you didn't rip anyone off between those years.

Last year, when we left the rental place we were in, I didn't think it was worth the hassle to request the $1.31 in interest that I was entitled to after living there for 3+ years.

[You Need a Thneed]

Originally Posted by fredr123

Residential Tenancies Act, RSA 2004, c. R-17.1

Amount of security deposit
43(1) A landlord shall not require a tenant to provide a security deposit that is greater than one month’s rent under the residential tenancy agreement or that is greater than the rent that would be payable for one month under the residential tenancy agreement if the rent were payable monthly.
(2) A landlord shall not require a tenant to pay an increase in a security deposit.

Trust account
44(1) A landlord shall
(a) deposit each security deposit consisting of money received by the landlord into an interest‑bearing trust account at a bank, treasury branch, credit union or trust corporation in Alberta within 2 banking days after receiving the deposit, and
(b) ensure that the security deposit remains in trust until it is disposed of in accordance with this Act and the regulations.

Interest on security deposit
45(1) Subject to subsection (2), a landlord shall pay annually to the tenant interest calculated at the prescribed rate on a security deposit consisting of money.
(2) If a security deposit consists of money, a tenant and the tenant’s landlord may agree in writing that the interest on the security deposit shall not be paid annually and in that case the interest shall be compounded annually and be paid to the tenant on the expiration or termination of the tenancy.
(3) A landlord is entitled to retain any interest and profit resulting from the investment of a security deposit in excess of the amount of interest payable to the tenant under this section.
(4) If a landlord and tenant agree that interest is to be payable under this section at a rate higher than the rate prescribed pursuant to this section, subsections (1), (2) and (3) are deemed to refer to the higher rate.

What rate do you have to pay? Check the Security Deposit Interest Rate Regulation:

Interest rate after 2004
2 For the purposes of section 45(1) of the Residential Tenancies Act and section 50(1) of the Mobile Home Sites Tenancies Act, the annual rate of interest for 2005 and each following year is the rate that is 3% below the rate of interest that is in effect on November 1 of the previous year for cashable one‑year guaranteed investment certificates held or offered by Alberta Treasury Branches Financial.

Furthermore:

Act prevails
3(1) Any waiver or release by a tenant of the rights, benefits or protections under this Act is void.
(2) If a residential tenancy agreement is in writing, the agreement must contain the following statement in print larger than the other print in the agreement:
The tenancy created by this agreement is governed by the Residential Tenancies Act and if there is a conflict between this agreement and the Act, the Act prevails.

So, the notation of "no-interest bearing" on the document is pointless, as interest is still required to be payed.

[Tron_fdc]

Yeah, I'm a little late on the responses but I went golfing. Hey, it was last minute in Kananaskis....

Anyways, I have all his rent cheques up until November, so yeah, I might try going into his bank and certifying it. Doesn't he have to sign off on it or anything? I'm assuming he could just cancel them though?

The reason I didn't cash the damage cheques right away is because he was asking for a little more time to get on his feet (wife and kids, moved out from Ontario). It's really annoying, because the guy had references, as well as a job in Calgary. I didn't think I was going to get ripped off at all, and I was being a nice guy helping him out.

In the last 12 months I think I've collected about 6 months rent from the knobs that have been in my house. It's really annoying, and it seems no matter how hard I screen them I keep getting idiots.

[Tron_fdc]

Originally Posted by Teh_Bandwagoner

Can a collection agency be hired? I'd like to know how this pans out in case I run across this situation as well.

This is what I'd like to find out. He signed a 6 month lease, the damage deposit cheques were written into the contract (3 cheques over 6 months) and he didn't give written notice (called me 10 days before he moved out and told me). The entire amount of the lease is around $10,500.00 (including damage) over 6 months ($1500/month, 1500 in damage deposit).

If I was mean I'd turn the whole thing over to collections.....have them buy out the entire amount for $0.50 on the dollar, and I walk away from it.

[Sample00]

cash the damage deposit cheque as well. wait for it to come back NSF (maybe), then when you have both NSF cheques back, take them to your bank and have them send it out on collections. They will send it to the branch that its drawn on or their processing centre and the bank will check each day to see if it can certify the funds. this may cost you 15-30 dollars to do. cheques are good for 6 months from date of issue. this is how long the bank will hold on to the cheque for and try to certify it. you might get lucky that he has direct deposit pay and then you can collect.
secondly you might get lucky that he forgets about it and then deposits money into that account and the bank will snafooo it.
good luck.

[ken0042]

I think you can only claim your actual damages, not what the term of the lease was.

I like Photon's idea of checking with his bank. Another option is to open an account where he banks, and then go in to deposit the cheque asking if they can certify it for you. If you know when his paydays are, try then; ie 16th of the month or Fridays. Catch him when his paycheque has just been deposited. Assuming he hasn't stopped payment, you will get some money back.

[Tron_fdc]

Originally Posted by Sample00

cash the damage deposit cheque as well. wait for it to come back NSF (maybe), then when you have both NSF cheques back, take them to your bank and have them send it out on collections. They will send it to the branch that its drawn on or their processing centre and the bank will check each day to see if it can certify the funds. this may cost you 15-30 dollars to do. cheques are good for 6 months from date of issue. this is how long the bank will hold on to the cheque for and try to certify it. you might get lucky that he has direct deposit pay and then you can collect.
secondly you might get lucky that he forgets about it and then deposits money into that account and the bank will snafooo it.
good luck.

Thanks Axl. I'm way more interested in getting my money than screwing with this guys credit. Yeah, I can stick it to him and it would make me feel good inside, but I'm a lot more interested in getting PAID.

I'll try this tomorrow.