Part 1: What Does COVID-19 Mean for Tenants and Homeowners?
Here is Mark Faris, CEO & Broker and Andrew Ain, Real Estate Lawyer, giving you insight into the challenges renters and home-owners with tenants are facing during this time.
Q: What happens when tenants can’t pay their rent? Are there any leniencies afforded to tenants in this current climate?
A: It’s a very unfortunate situation we’ve run into. Historically, if the tenant were failing to pay rent, you would then deal with the tenant board and perform an eviction. Right now, you can’t evict tenants. That is frozen in the province. All you can do is work with the tenant and see if a partial payment could be made or let them know that that debt is still needing to be paid and after a period of time, it can incur interest. It’s a tough time for landlords right now.
Q: What happens if a tenant is under isolation and the house doesn’t have vacant possession upon closing?
A: There is no simple answer to something like that. Right now, if the party is self-isolating or they have COVID-19, they are following provincial requirements by staying home. You can’t force someone to break the law. The best resolution for the buyer and seller is to work out a short extension until the isolation period is complete.