Illegal tenant activity and a landlord’s rights

What if a tenant is selling drugs out of their unit or has turned a rental home into a boarding house?

Both can happen. If a tenant is engaged in illegal or criminal activities – such as a marijuana grow-op – then it’s within the landlord’s rights to evict them for breaking the terms of the rental agreement.

In Ontario, the Residential Tenancies Act (RTA) lays out the procedure and reasons for such an eviction. In such cases, a landlord has to serve an N6 notice to end the tenancy. They can do so if they believe illegal activity is occurring in the rental unit or residential premises and is being committed by either a tenant, occupant or someone they allowed on the premises. That includes a tenant who carries on an illegal trade, business or occupation or permits a person to do so in the rental unit or the residential complex.

There doesn’t need to be a criminal charge or criminal conviction.

The termination date by which time the tenant has to move out depends on the reason. For drugs and trafficking it’s 10 days after the landlord serves notice. For anything else, it’s 20 days.

The term "illegal" is not defined in the RTA but would include a serious violation of a federal, provincial or municipal law. If the illegality is trivial or technical, the act, business, or occupation might not be considered serious enough to warrant eviction.

An illegal act will be serious if it has the potential to affect the character of the premises or to disturb the reasonable enjoyment of the landlord or other tenants. There is no opportunity in the RTA for the tenant to avoid termination by rectifying the illegal act.

Illegal vs criminal

It’s important to note that “illegal” does not necessarily mean “criminal.”

If a tenant has been charged with criminal activity that is deemed unrelated to your property, it’s important for Ontario landlords to understand that the tenant still has rights that must be respected to avoid any legal ramifications.

If the landlord is unsure whether a tenant who has been charged with criminal activity has broken provincial landlord-tenant regulations or the rental agreement, it’s recommended they seek legal advice and/or consult with the appropriate authorities.

A tenant who has been jailed for criminal activities unrelated to the property cannot legally be evicted from the unit, since they have not technically broken the terms of the rental agreement. Whether or not the tenant will be able to pay rent and utilities costs while jailed is a separate matter, and future missed payments would be a legitimate reason for landlords to begin the eviction.

It may also be possible for Ontario landlords to claim that the property has been abandoned by the tenant, which the Residential Tenancies Act deems as a legitimate reason to begin the eviction process.

How it affects home insurance

According to the Insurance Bureau of Canada home insurance in general does not provide coverage for anything that is done illegally. Rental insurance is intended to cover specific perils – things such as fire or that could happen to the building itself. It does not cover damage or internal modifications done by tenants. 

Landlords need to be aware of what their tenancy agreement says in terms of number of occupants allowed, whether commercial activity is permitted on the property or if it is solely for residential use. In addition, it should spell out whatever renovations or changes the tenants can do on their own and what they need the permission of the landlord to do. 

Above all, clearly disclose what you know about the property and tenants to the insurance provider and keep the policy up to date. This is important in the event of a claim. If all else fails, a landlord can always take legal action against renters who don’t comply with the rental contract.

RELATED READING: Landlords struggle to evict tenants who turned Toronto homes into rooming houses, owe rent