When a tenant is served an eviction order, they usually believe that there will be no future payments after leaving, however this is not always the case. A 1993 court ruling had established that tenants still owe two months’ worth of rent after their eviction if they fail to provide proper notice. The Liberal government has committed itself to terminating this practice.
Following the Toronto Star newspaper investigation into MetCap Living Management Inc. and their Suite Collections, their collections agency for pursuing two months’ of rent from tenants after eviction the minister of municipal affairs and housing Ted McMeekin took a stand against the practice. The Toronto Star then examined the law further and found a 2013 small claims court decision that conflicted with the 1993 court ruling. While McMeekin aims to overturn the decision, Mr. Merrill, president of both MetCap and Suite argues the practice is legal. Upon hearing the minister’s comments, Mr. Merrill has agreed to refrain from using practice until it is clarified.
Tenants who owe two months’ worth of rent following eviction struggle to pay the fee as they owe rent to their new landlords upon moving into a new home. Thus, in the first two months former tenants will have to pay two months’ worth of rent to their former landlord while also paying rent to their new landlord. Consequently, many tenants are unable to pay their former landlord which in turn damages their credit reports. Some tenants are unable to borrow money due to their tainted credit ratings.
The law is currently under review and requires clarification. The minister of municipal affairs and housing is confident that immediate changes can be implemented without amending the law. He goes on to state that if the law does require amendment he will take it to the House of Commons in the fall for review.
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