How to repossess your income property

You found an income property you like.

The place is perfect for you; great location, in fantastic condition. It’s fully rented with good paying tenants in long term leases. The revenues are good enough to cover all the expenses; including your own part of the mortgage….Because, after all, you are buying the place to move in. Right?

Living rent free, what a dream!

But wait a minute. Isn’t the building fully rented?

“Yes, but as the new owner, I can take back one of the units whenever I decide to” - You might be thinking.

Well, it doesn’t really work that way. You see, according to the Régie du logement:

“All tenants have the right to remain in the rental unit indefinitely as long as they respect the terms of the lease…”

How can you repossess one of the units, if there’s no problem with the terms?
Do you have to wait until someone decides to leave in order to move in?

Fortunately, the law also mentions…

“(However) the landlord may terminate the lease under certain circumstances.”

Repossessing your property.

“The landlord may repossess the property from the tenant in order to live there personally, install a first degree relative (for example, a parent or a child); install a relative or person connected by marriage, or by a civil union, to whom the landlord provides principal support; or to install a spouse or former spouse if the landlord provides them with principal support following a divorce, legal separation, or dissolution of civil union.”

We’ve established who is eligible to live in a repossessed unit. Now let’s take a look at what are the steps to follow.

First, you must notify the tenant.
Depending on the length of your tenant’s existing lease, notice terms may vary.
If the lease is for six months or less, you must notify the tenant at least one month prior to the lease expiry date.

If the lease is for more than six months, the notification period is at least six months before the lease’s expiry date.

For leases with undetermined timeframe, the notice must be given six months before the date of repossession (or eviction)

Write the Notice of Repossession.

When writing the Notice of Repossession, you must include the fixed date for the property to be repossessed, the name of the beneficiary and, if applicable, the relationship between the beneficiary (the person moving in, other than yourself) and the landlord.

Don’t have the time or initiative to start writing? No problem, the Régie gives you the template for your Notice of Repossession. All you have to do is fill it out and send it.
N.B.: Make sure to deliver it by registered mail.

What happens next?

The tenant must respond to the landlord his intention to comply (or not) with the notice.

The response should be given within one month after receiving the notification. In the case that he doesn’t respond, he is assumed to refuse.

“Within one month after receiving notice of repossession, the tenant must notify the landlord as to whether or not he intends to comply with the notice; otherwise, he is deemed to refuse to vacate the dwelling.”

When a tenant refuses to leave.
(And things get ugly)

There’s still chance to negotiate, but unfortunately it has to be in front of a judge. And get your checkbook ready; moving expenses are coming ahead.

“If the tenant refuses to vacate the dwelling, the landlord may repossess it with the authorization of the court. Such application must be made within one month after the refusal by the tenant.”

“Where the court authorizes repossession, it may impose such conditions as it considers just and reasonable, including reimbursement of the tenant’s moving expenses.”

In the case of eviction, the tenant’s moving expenses are payable upon presentation of receipts.

It takes a few steps to occupy your Live-Rent-Free property. When tenants are willing to leave the premises with a notification, everything should go smoothly.

If you are looking to evict in order to divide, enlarge or change the nature of the property; there are additional steps to follow. But we’ll be discussing that subject in a future article.

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