Your landlord wants you to sign a Form N11 “Agreement to end a tenancy.” Should you?
What is a Form N11?
A Form N11 or “Agreement to end a tenancy” is a form that both a landlord and a tenant can sign to mutually agree to end an existing tenancy in Ontario.
The
most important thing for a renter to know is they do not have to sign a
Form N11 if they do not want to end their tenancy and leave their home, no matter what their landlord says. Signing an N11 is supposed to be a voluntary decision.
Renters
should also be aware that signing an N11 limits your rights with filing
a Form T5 “Landlord gave a Notice of Termination in Bad Faith” against
your landlord after the fact. It can also void your right to
compensation if a landlord says their family or a purchaser wants to
move in. In that situation, your landlord should provide you with an N12
form – not an N11. Therefore, you should only sign an N11 if you want to move out and end your lease early.
Landlords should use the proper notice eviction form
Different types of evictions require different notice forms. If your
landlord says they are moving into your home, or a purchaser is moving
into your home, they should be sending you a Form N12 “Notice to End
your Tenancy Because the Landlord, a Purchaser or a Family Member
Requires the Rental Unit,” instead of an N11. Form N12s do not require
you to sign anything. However, with this form, tenants are entitled to
compensation in the amount of one month of rent.
Similarly, in
cases of extensive renovations, repairs, or conversion, the landlord
must provide the tenant with a Form N13 “Notice to End your Tenancy
Because the Landlord Wants to Demolish the Rental Unit, Repair it or
Convert it to Another Use.” The landlord must also provide compensation
(and proof of a building permit) if they need the tenant to vacate the
unit for extensive renovations. By law, tenants also have the right to
return, by which they can inform the landlord in writing of their
intention to move back into the unit (at the same rent) when the
renovations are completed.
If you have fallen behind in your rent
payments and your landlord wants to evict you, your landlord should be
serving you with a Form N4 “Notice to End your Tenancy for Non-payment
of Rent.” Again, a Form N4 does not require you to sign anything; and it
allows you to void the notice and stay in the unit if you pay all the
rent owed.
Remember, your landlord cannot legally evict you
themselves, even if they give you a notice of eviction form. The
landlord must first be issued an eviction order by the Landlord and
Tenant Board. Afterwards, a landlord may then take to the Court
Enforcement Office (Sheriff) to enforce the eviction. If you receive any
type of eviction notice from your landlord, it’s really important to
read the documents carefully and get legal advice right away.
Why some landlords might be pressuring their tenants to sign N11s
Sky-high rents and a lack of affordable housing units means that the
rental housing market in Ontario is exceptionally challenging for most
tenants; and financially lucrative for most landlords. This context is
critical to understand because some landlords are attempting to pressure or manipulate their tenants into signing Form N11s.
Landlords
do this because they know they could make more money on their unit if
they can get their old tenants out, thanks to a rent control loophole
called vacancy decontrol. Vacancy decontrol allows landlords to charge whatever amount of rent they want to a new tenant.
This lack of vacancy control in Ontario means rents have gone up anywhere from 10-30% each year. Asking rents for a 1-bedroom unit across Ontario now average $2,191 per month. However, the median income for renters across Ontario hovered at just $3,433 per month
(as of the 2022 census). To afford the average asking rent, Ontario
renters would have to pay over 60% of their income towards housing costs
– markedly increasing their risk of homelessness. In order to afford
the average 1-bedroom in Ontario, renters would need to be earning
~88,000 per year. Most homeowners don’t even have incomes that high, let
alone the average renter.
That’s why renters need to think very
carefully about whether or not they should sign a Form N11, especially
if they’re been living in the unit for a long time. It will be difficult
– and in some cases, impossible – to find a similar sized unit in the
same community at an affordable rent. Under the law, renters have the
right to stay in their homes until their tenancy is terminated by the
Board. A landlord’s quest to make more money shouldn’t force them to
give up their rights as a renter.
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