How a successful tenant collect money from landlord?

If you were successful in obtaining an order from the Board for payment from your landlord, it is important to read the entire order to find out how to collect the money that is owed to the tenant. If you are living in the rental unit and the landlord does not pay when ordered to do so, the Board may authorize you to collect the money they are owed by deducting a specified sum from your monthly rent. However, if you've already moved out of the unit, or is moving out and has already made their last rent payment to their landlord, you might want to try other methods to collect the money owed to them.

Here are some of the suggestions that you should consider:

Writing a demand letter to your landlord

This is an easy and inexpensive method that should be your first course of action.

The letter to the landlord should include:

• A request for prompt payment of all the money under the order by a specified date;
• Contact information where the landlord can make the payment;
• Steps you plan to take if the landlord does not pay by the given deadline, such as enforcing the order with the Small Claims Court and/or reporting the order to the credit bureaus. If the demand letter does not persuade the landlord to pay, now you can take next steps to collect.

Enforcement with Small Claims Court:

Orders from the Board can be registered and enforced in the Small Claims Court. Once the order is registered for enforcement purposes, the order is treated as an order of the court. To register the Board order, you must attend the Small Claims Court’s Office with a certified copy of the order. The tenant can find the location of the nearest Small Claims Court by visiting the Ontario Courts website. There is a fee attached to registering a Board order. This fee can be added to the amount owed by the landlord. If you cannot afford to pay the fee, you may be eligible for a fee waiver. 

There are three Small Claims Court procedures to collect money, and which method will best serve the tenant will depend on what information they have about their landlord. You can read more these method to collect money at Small Claims Court here.

Collecting money through the Credit Bureau

Credit bureaus or consumer reporting agencies, create and maintain credit records. They collect information from banks, credit card companies, mortgage companies, and other creditors, and provide information on individuals' borrowing and bill-paying habits to lenders and creditors, insurance companies, landlords or potential employers who may use the information to assess applications for loans, lines of credit, insurance, apartment rentals or employment. If a landlord fails to pay a tenant pursuant to a Board order, you can file the order with the credit bureau, and the debt will appear on the landlord’s credit report. This can damage the landlord’s credit report and score, making it difficult for the landlord to obtain credit, or renew their mortgage unless the debt is cleared.

The two major credit bureaus that operate in Ontario are Equifax Canada  and TransUnion Canada

Using the Collection Agency

If you have the financial means to do so, they may retain the service of a collection agency to arrange for payment of the money the landlord was ordered to pay by the Board. The collection agency may charge a flat fee or percentage of the debt that they recover. You should discuss their needs directly with the collection agency before hiring them.