Tenant Not Paying Rent in Manitoba

Rent is due on the date your tenancy agreement sets. A tenancy agreement cannot make rent payable earlier than that date, so you cannot call the whole term's rent due the first time a payment is missed.

Start with the basics. Check your records, contact the tenant, and write down what was said. If the tenant pays in cash, you must give a written receipt that shows the amount, the day received and the address of the unit. The RTB treats automatic debit and pre-authorized payments as cash for this purpose.

The law gives you two fees you may charge, and both come with conditions:

• Late payment fee. You must tell the tenant in writing, before charging it, that you intend to charge late fees. The maximum is $10 for the day rent is due plus $2 for each later day, up to $100 in total. You cannot charge it if the lateness was caused by an interruption in mail service or another circumstance beyond the tenant's control, or by a government payer.
• NSF cheque. The costs you may charge for a dishonoured cheque must not be more than $60. After a bounced cheque you may tell the tenant you will accept only cash, a certified cheque or a money order in future.

For the general picture of late payments, see the Ask page on what to do if a tenant pays rent late.

Once the tenant fails to pay within 3 days after the due date, you may give a notice terminating the tenancy. The notice must be on the prescribed form, and it must tell the tenant they are entitled to dispute your right to give it. The RTB's fact sheet on notice for non-payment of rent sets out what goes in it.

The notice gives the tenant a way out. The tenant can avoid termination by paying the full amount owing, plus any prescribed costs, on or before the date specified in the notice. Fill in the form carefully and follow the RTB's instructions for the dates it asks for.

A separate rule covers a bounced security deposit cheque: the RTB fact sheet gives a five-day written notice for that situation.

Read how this fits with other ways to end a tenancy in the Manitoba landlord eviction guide. Tenants see the same process in their own eviction guide.

What you do with money after serving the notice decides whether the notice survives.

• Full payment. If you accept the total amount owing, you waive your right to terminate. The only exception is when, at the time you accept the payment, you confirm in writing that you intend to treat the agreement as terminated.
• Partial payment. Accepting part of the amount does not waive your right to terminate, unless at that time you advise the tenant in writing that they may continue to occupy the unit.

Keep every payment record and every written message. If you want the notice to stay in force, say so in writing when you take the money. If you would rather keep the tenant, do the opposite and say they may stay.

A tenant who stays after the termination date must compensate you for the time they occupy the unit, and the tenancy agreement continues to bind both sides.

1. Apply for an order of possession. If the tenant has not paid or left by the notice date, apply to the RTB. The regulation sets the fee at $60, and the application can include a claim for compensation. A compensation claim that is not related to a deposit is $50.
2. Serve the hearing notice at least 5 days before the hearing.
3. Attend the hearing. It goes ahead without you if you do not come. A decision usually follows within two working days, and the order usually sets a move-out date seven days after it is issued.
4. Enforce the order. If the tenant stays, file a certified copy in the Court of King's Bench within 90 days of the order and obtain a writ of possession. Sheriff's Officers enforce it.
5. Collect the money. An RTB order to pay can be filed in the Court of King's Bench and enforced like a judgment. Tools include a notice of garnishment for wages or bank accounts and a writ of seizure and sale. There is no time limit on filing a payment order, and you file after the appeal period ends with no appeal.

The RTB itself enforces only orders to return security deposits and overcharged rent, so collecting your own order is your job. The Ask page on suing for unpaid rent covers the general idea. See also the RTB guide on enforcing an order.

Unpaid rent does not give you extra powers. The remedy for unpaid rent is the notice and the RTB process above. In particular:

• Do not cut vital services. A landlord must not withhold heat, gas, electricity, hot or cold water that you are obliged to supply, or deliberately interfere with a vital service. The Act has no exception for unpaid rent. You also may not reduce or interfere with the services and facilities you promised.
• Do not seize or keep belongings. The Act says a landlord shall not seize the tenant's personal property for unpaid rent, and it also bars distraint for rent.
• Do not change the locks. Neither side may change or interfere with a lock without the other's consent.

Penalties are real. A contravention of these rules can draw an administrative penalty of $1,000, $3,000 or $5,000, and the offence fine for cutting a vital service is up to $2,000 for an individual.

A security deposit can be claimed for outstanding rent and other compensation owed. Manitoba's deposit deadlines are tight. If you have no claim, you must return the deposit and interest within 14 days after the tenancy ends. If you do have a claim, you must within 28 days send the tenant a written notice of the amount you claim and return any unclaimed portion. A landlord may use the deposit as last month's rent only with the other side's written consent.

Do not guess at these dates. Full deposit rules, including the cap of half of the first month's rent and 0.5% yearly interest, are in the RTB's materials and in the Manitoba security deposit guide for tenants.

If the tenant stays past the termination date, read the Manitoba guide on tenants who will not leave after notice.

This guide explains the rules in general terms; for a specific case, ask the tribunal or a licensed legal professional.