Realstar Management illegally holding deposits?
Scott
Background: I am currently a tenant with Realstar Management. I will be
vacating my rental unit at the end of June 2002. My lease expires at
the end of January 2003, but my lease/unit has been reassigned starting
July 2002. No problem there.
I was told that my predated cheques would be returned to me when the
unit was reassigned. However, my predated rent cheque for my final
month of tenancy was cashed. That, in itself, is not a problem either.
Problem: I was told my rental office that "Toronto" (RealStar Mgmt)
will forward my refund to my new address after I leave. I called
RealStar to see if I could get it before I move out. I spoke to a Pat
Diamantopoulos at RealStar who insisted they will hold onto my last
month's rent deposit until after the final inspection and apply the
charge for any damages to my deposit. When I indicated that my deposit
was for my "last month's rent" and it was not a security deposit she
asked where else would they get the money from if there are any
damages. When I again pointed out to her that a "last month's deposit"
can NOT be used as a security deposit she asked if I worked in the
rental business and refused to discuss it further with me.
The local management staff is generally a nice bunch. All my
experiences locally have been excellent, and I have highly recommended
the building to many people and still stand by all my praises. What I
didn't realise--because it never came up--was how unscrupulous and
dishonest company RealStar Management is showing themselves to be. Or
perhaps it's just this Pat person.
For me, $813 is a lot of money and I'm already paying for another place
with another deposit as well. The apartment is fine, so I know there
won't be any damages I have to pay for. I know I will probably receive
my deposit before the end of summer, but I don't like that this Pat
Diamantopoulos charged me my last month's rent AND is essentially
holding my deposit hostage.
I've learned now to either don't give predated cheques or demand them
back (rather than simply ask about them) when I end my lease. However,
anyone know if there is any other way to remedy this other than filing
a $45 T1 form with the Ontario Rental Housing Tribunal?
Pardon the rant, and thanks for any good advice.
Scott
Kenny Leung
rented this place, the lady told me I have to give 2 months notice before
moving out. And if I stay there less than one year, then there is a $200
penalty and I can move out anytime. I started renting the place (which is in
DT Toronto) last Sep. and I planned to move out at the beginning of summer.
So I told the manager I planned to move out at the beginning of April (so
that I can move into my new appartment at June). However, the manager (lady)
came up with a rule that I have to pay the rent until Sep. (where the
contract expires) if nobody is renting the place. I told the manager when I
first came here I was not informed about this rule. I was also afraid no one
will want to rent my place (because it's pretty messy) and I was angry
because she never said anything about this when I rented the place. Luckily
one of my friends rented my place. After that I went to ask the lady to
refund my deposit. Same thing happened, she said she has to send it back by
mail and refused to pay me back my deposit at the time. She also said if
there's anything damage in the appartment, my last month deposits will cover
that.
There is one more thing. Now the Realstar Management requires 6 months
deposit in advance before renting the place. That's ridiculous!!
I just want to warn other people who want to rent a place from the Realstar
Management, make sure you check all the rules before you signed the
contract.
Kenny
"Scott" <sco...@ottawa.comNET.COM> wrote in message
news:190620021309597508%sco...@ottawa.comNET.COM...
Anthony Yeung (Rogers@Home)
lease.
I do not think it is legal to charge 6 months deposit.
http://www.orht.gov.on.ca/public/RentRules-e.html
http://www.orht.gov.on.ca/public/TermtableTen-e.html
Peter
Also, it is very illegal to ask for more than 1 months rent as a last months
deposit.
I quote "A landlord can collect a deposit from a new tenant. It cannot be
more than one month's rent, or, if rent is paid weekly, one week's rent.
This deposit can only be used as the rent payment for the last month or week
of the tenancy. It cannot be used for any other reason - for example, paying
for cleaning or repairing a rental unit."
See for yourself at http://www.orht.gov.on.ca/home.html
They also do not have the right to demand post-dated cheques. It is only a
convienence factor for you both. You have the right to immediately demand
that all the cheques be returned & that the double paid last months rent be
returned. (ie, your June rent would have been the one that applied). If
there was damage to your unit, the landlord has to invoice you for it
afterwords. I suggest that you read the detail from the link above and see
the "landlord" person directly. Indicate that you have checked with the
tribunal and inform them that you will give them a reasonable amount of time
to return your stuff or you will take them to the tribunal. It will cost
you if you have to follow through, but you WILL win. Black & White. You
will also be entitled to Interest, Court Costs (ie your fee) & probably a
penality amount from the landlord in addition to your last months rent back.
It is actually a very easy process.
As for the 6mth thing, same thing, the Tribunal will rule in your favour &
penalize the landlord heavily if you can prove it ... (ie, have signed
witness statements / or tape record it)
As for your breaking your lease thing, you are out of luck. You are
responsible for the place until the end of your lease & are responsible for
the rent unless you find someone to assign it to. They cannot withhold your
rent deposits. They are not their cheques, they are yours...
"Kenny Leung" <kenl...@hotmail.com> wrote in message
news:Lg3Q8.4788$YG5.1...@news20.bellglobal.com...
Maria Sanchez
questioned the deposit that most Landlord's ask for and thus said, have
hesitated to take on moving. So what you are all meaning to say is that,
when a LL asks for First/Last, technically we the prospective Tenants are
not obligated to pay that deposit? If so, why are LL still continuing ask
for First/Last? As a person viewing the apt., etc. do we have a right to
tell the LL that only a deposit in the amount of one month's rent should
only be required in order to hold the apt.?
Advice would be greatly appreciated!
"Peter" <rpsm...@hotmail.com> wrote in message
news:J18Q8.15630$FN6.40...@news.tor.primus.ca...
Kenny Leung
place!!
I guess Realstar Managment is rip off...!
"Maria Sanchez" <maria....@rogers.com> wrote in message
news:NA9Q8.87061$831....@news01.bloor.is.net.cable.rogers.com...
ckbw...@cuic.ca
landlord will have to give you your last months rent deposit and any
interest that comes with it.
"Scott" <sco...@ottawa.comNET.COM> wrote in message
news:190620021309597508%sco...@ottawa.comNET.COM...
>
Peter
if the landlord requests it. What I have usually seen done is two cheques,
one dated & cashed the day the lease is signed (for the last month) and one
dated for the 1st months rent. Ie, if you sign a lease on 18 Jun for 01
Aug, you would give a cheque for 18 Jun & one dated 01 Aug. Legally, he is
only entitled to demand the last months rent, however, this is not too much
to ask for. It is illegal in the above example to ask for 2 mths worth of
cheques dated 18 Jun.
Later, the tenant, upon giving his 2 mths notice, then only pays one more
months rent. The last month is covered by the cheque he gave when he first
moved in. The landlord is not allowed to "deduct" damage from this amount,
though he can legally require you to pay him separately for any damage (it
just must be done as a separate transaction).
It is very illegal to for the landlord to ask for more than this one month.
If you are asked for more or have given it already, you can apply at the
tribunal. You WILL win and get all your costs covered & the landlord will
probably be required to pay some sort of extra fine - dependant on your
situation. If you need to move in & this 6mth thing is a condition, I would
suggest that you pay and then take them to court... It is actually is a
VERY easy process and the rules are VERY clear.
Oh, the landlord owes you interest on this last months rent. 6% per year.
Better than saving it yourself! It is prorated, ie, if you lived there 9
months he would owe you 9/12 *.06 *Rent. If he refuses to pay, he owes you
interest. In the example below, at a minimum I would demand this 6%
interest on the full 6 mths deposit for the time you were there...
This is very clear in the "information brochure" section of the official
site. http://www.orht.gov.on.ca/home.html
Good luck.
Oh, most landlords count on the tenant buckling to their whims & being too
afraid to contest what they say. They also often hire people who are not
aware of the exact laws. Don't be afraid to educate them. Nothing educates
more than getting fined... especially when you are so in the right.
"Kenny Leung" <kenl...@hotmail.com> wrote in message
news:Z7aQ8.5769$YG5.1...@news20.bellglobal.com...
Gnus
wrote:
>Well to answer you both, you are required to provide a last months deposit
>if the landlord requests it. What I have usually seen done is two cheques,
>one dated & cashed the day the lease is signed (for the last month) and one
>dated for the 1st months rent. Ie, if you sign a lease on 18 Jun for 01
>Aug, you would give a cheque for 18 Jun & one dated 01 Aug. Legally, he is
>only entitled to demand the last months rent, however, this is not too much
>to ask for. It is illegal in the above example to ask for 2 mths worth of
>cheques dated 18 Jun.
JFYI.....When a landlord gets a rental agent to rent a place the
rental agent usually gets one months rent for their service of renting
the place. It is common practice when renting to be asked for first
and last months rent at the time of signing the rental agreement. At
that time one month goes to the rental agent.
The above example you gave ie. jun 18 with a move in one Aug 1 has
more than a one month gap.
>
>Later, the tenant, upon giving his 2 mths notice, then only pays one more
>months rent. The last month is covered by the cheque he gave when he first
>moved in. The landlord is not allowed to "deduct" damage from this amount,
>though he can legally require you to pay him separately for any damage (it
>just must be done as a separate transaction).
>
>It is very illegal to for the landlord to ask for more than this one month.
If the tenant is required upon signing the rental agreement to pay
first and last months rent. The deposit is only one month and the
other is payment for the first month. Alternatively the landlord does
have the right to have payment of the first months rent before the
tenant moves in, in cash or cert cheque.
>If you are asked for more or have given it already, you can apply at the
>tribunal. You WILL win and get all your costs covered & the landlord will
>probably be required to pay some sort of extra fine - dependant on your
>situation. If you need to move in & this 6mth thing is a condition, I would
>suggest that you pay and then take them to court... It is actually is a
>VERY easy process and the rules are VERY clear.
>
>Oh, the landlord owes you interest on this last months rent. 6% per year.
>Better than saving it yourself! It is prorated, ie, if you lived there 9
>months he would owe you 9/12 *.06 *Rent. If he refuses to pay, he owes you
>interest. In the example below, at a minimum I would demand this 6%
>interest on the full 6 mths deposit for the time you were there...
Again the tenant must request this 6% from the landlord. Say the
landlord has not paid the tenant this 6% during the last 5 years than
the landlord is only required to pay the 6% for the last 12 months
only.
>
>This is very clear in the "information brochure" section of the official
>site. http://www.orht.gov.on.ca/home.html
>
>Good luck.
>
>Oh, most landlords count on the tenant buckling to their whims & being too
>afraid to contest what they say. They also often hire people who are not
>aware of the exact laws. Don't be afraid to educate them. Nothing educates
>more than getting fined... especially when you are so in the right.
Most tenants are also not aware that if they interfere with the rights
of the landlord they are also in line for a fine up to $10,000.
I have also seen where the tenants also ask for things which they are
not entitled to under the TPA and individual landlords cave-in during
mediation to more than they need to.
The question is "who wants to be a landlord'? And if all those who
could be a landlord actually rented out the places or spaces that they
have there would not be the less than 1% vacancy and rents would be
less.
The TPA needs to differentiate between corporate landlords and those
who are individuals.
Scott
Thanks for the information about filing with the tribunal. The $45 fee
was a deterrent, but I didnšt know that the cost could be recovered.
Someone working at my building at 190 Lees is trying to contact Pat
Diamantopoulos of RealStar in Toronto who is in charge of some
financial aspect of my building, but can't get in touch with her.
Smells like a run around. After Pat Diamantopoulos said she refused to
discuss the matter with me I went down to the rental office and had to
wait because the person there was on the phone--with Pat
Diamantopoulos. Hmmm.. I've been trying to contact her supervisor,
Mahendra Koovarjee at 416-966-8369 with no luck. Just voice mail. Of
course it took me three days to reach Pat D. through my persistance
since she never returned my messages. (Basic name/number message, by
the way.)
RealStar is a huge company with apartment rental buildings throughout
Toronto and Ottawa among other places. I guess their ego and
condescending attitude is just as big. My building is RiverClub on Lees
Ave. It was fine for the four years I was there but I guess they're
finally showing their true colours now that there's an issue.
I will look further into filing with the Ontario Rental Housing
Tribunal. I appreciate the insights and leads. Sorry to hear that
others had similar problems, too.
Scott
In article <J18Q8.15630$FN6.40...@news.tor.primus.ca>, "Peter"
<rpsm...@hotmail.com> wrote:
--
* * * Please remove "NET.COM" from email address. * * *
Frans van Duinen
you are responsible for paying on time. In other words it is up to you to make
sure that the rent payment reaches the landlord when it is due. On late
payments the LL can charge an admin. fee of say $25.
Most tenants who do not provide PD cheques have 2 or 3 late payments.
I'm not sure what the ORHT was thinking of, but PD cheques are advantageous
for tenants as well as for LLs.
------------------------
Peter wrote:
...
> They also do not have the right to demand post-dated cheques. It is only a
> convienence factor for you both. You have the right to immediately demand
> that all the cheques be returned & that the double paid last months rent be
> returned. (ie, your June rent would have been the one that applied). If
...
--
Frans van Duinen
Toronto, Ontario