Rental guarantees and landlord legal expense protection are a successful multi-billion-dollar industry in Europe and Australia. The majority of landlords in the United Kingdom have had rental guarantees and legal expense protection for more than 20 years. It is now being offered to Canadian landlords.
Investment in residential rental property ownership has increased in Toronto by an estimated 20 per cent since the 2008 global economic meltdown, says Steven Solomon, president of Rentshield Protection (Canada). “The majority of residential property owners in Canada and United States are moms and dads over the age of 48 who want financial stability and are developing a retirement financial strategy they can manage themselves,” he says. “With every investment strategy there are inherent unknown risks. Moms and dads now having to take on the role of property manager may not be prepared for the risks even seasoned landlords need to manage frequently; tenants that won’t pay rent and refuse to vacate, serial trouble tenants that tie up landlords with appeals, complex collection laws that delay enforcement and a Landlords and Tenant Tribunal favouring tenants over rental property owners because the courts perceive landlords as big business owners with deep pockets.”
Solomon says landlords had to attend more than 70,000 Landlord Tenant Tribunals in Toronto last year. A recent Calgary-based bad tenant story involved a man who declared his rental home was an embassy and refused to pay a grandmother landlord the rent. She lost more than two years of unpaid rent and suffered the stress of believing she had lost her pension income and life savings.
Membership in the Rentshield program, which starts at $299 per year, guarantees payment of unpaid rent and pays all legal and court costs to collect and evict a trouble tenant who is not paying their rent or won’t vacate. Landlords can sign up using a secure on-line system.
For information: www.rentshield.ca