Ontario’s Landlord and Tenant Board (LTB) focuses on resolving disputes between rental property landlords and tenants. They also address eviction applications filed by housing co-operatives. LTB provides comprehensive information about specific procedures, rights, and responsibilities of landlords and tenants in accordance with the Residential Tenancies Act. One of the issues covered is the move out inspection in Ontario.
What’s a move out inspection?
The move out inspection occurs whenever a landlord and tenant walk through the entire rental unit to check for illegal alterations to the property or damage. The landlord or property manager will be looking for damage in excess of what’s considered normal wear and tear or various changes to the rental unit that haven’t been mutually agreed upon.
What’s the purpose of the move out inspection in Ontario?
A comprehensive move out inspection allows landlords to document the condition of the rental property. It makes it easier to determine if damage has been done to the rental unit while in use by the tenant. Note that damages beyond normal wear and tear could decrease the amount of returned security deposits. In case the cost of the necessary repairs is beyond the value of the security deposit, the tenant may be required to make up that sum.
If the move out inspection is done before the tenant moves out, the landlord has the chance to present the tenant with a list of necessary deductions to be taken from the security deposit. Also, this will give the tenant a chance to address the necessary repairs to the rental unit before moving out.
Timing & scheduling move out inspection in Ontario
Move out inspections often happen at the end of a tenant’s lease and when a tenant is moving out of the rental property. The exact time to schedule this inspection varies depending on local laws and the landlord’s preferences.
In many cases, a move out inspection in Ontario happens on the date of the tenant’s move out or three days after. Waiting until the tenant has removed their possession from the rental property means no physical damage can be hidden, and you (the landlord) can clearly identify various potential issues.
A move out inspection can also be done three days or several weeks before the tenant’s move. A timely move out inspection allows the tenant to make any necessary repairs to the rental units before leaving. This increases the chance of getting their full security deposit.
How to conduct a move out inspection in Ontario
Move out inspections should be timely and surprise-free. You have probably heard horror stories of finding the lighting fixtures dangling from wires, leaks slowly turning into a mold in the corners, wallpapers torn down, or the entire rental unit in disarray. All these issues are avoidable – well, for the most part.
Property inspections can help identify such damages before the tenant is gone. Timely repairs could help protect your property and cut unnecessary expenses. Here’s how to perform a move out inspection in Ontario.
Step 1: Create a tenant move out inspection checklist
Generally, performing a move out inspection in Ontario is an integral part of the responsibilities a landlord or property manager upholds. Note that the landlord’s expectations may differ from the tenant’s expectations. For this reason, adding the rental property owner’s expectations in the lease agreement is a good way of ensuring that the tenant adheres to them.
Therefore, attaching a comprehensive move out inspection checklist to your lease agreement is a great way to establish the expectations of the entire tenancy. This checklist can also be used at the end of the tenancy.
Step 2: Define and assess normal wear and tear
Prior to getting bent out of shape over physical damage to the rental unit, define what constitutes tenant damage. Generally, the concept of normal tear and wear protects tenants from being charged for the replacement of various items as they age. Similarly, assessing tenant damage protects landlords from various forms of damage caused by abuse or neglect of the tenant.
Step 3: Returning a security deposit
Once the move out inspection is complete, you (landlord) must return the tenant’s security deposit. That means returning the deposit amount with interest. Be sure to check the local guidelines regarding this issue.
In Ontario, most people know rent deposit rather than the security deposit. The rent deposit ensures that the rental property owner is paid for the last month of the tenancy before the tenant moves out. Unfortunately, you can’t use a rent deposit to cover damages by the tenant. Unless the tenant is willing to pay for the repairs, the matter may be taken to court.
What do you do if a tenant damages a rental unit?
Since the tenancy is ending, you might not have the chance to move for eviction with damages. That means the Landlord Tenancy Board isn’t in charge of your relationship. Besides, threatening the tenant won’t help, and you may end up incurring further losses. So, it is recommended to take your case to small claims court.
