The T5 application is a helpful tool for tenants looking to claim compensation when they’ve had to leave their rental unit or be evicted because the landlord wanted to reclaim the space for personal use, major repairs, or even demolition. This option has been around for a while, but since the updates to the Residential Tenancies Act in 2020, more and more former tenants are taking advantage of it. The new rules make it tougher for landlords to prove their case, and they also offer broader remedies and higher compensation amounts for tenants filing a T5 application with the Landlord and Tenant Board. In fact, in some situations, the compensation can reach tens of thousands of dollars.

Typically, landlords don’t have any ill intentions when they give a tenant an N12 notice. However, sometimes unforeseen circumstances and the actions of others can make it difficult for a landlord to actually move into the rental unit or get a family member or purchaser of the property to live there as planned. This raises an important question: how can landlords show the Board their situation and protect their interests in these circumstances?

The legislation provides some clear guidelines on what a tenant needs to demonstrate in order to receive compensation. Let’s take a look at those requirements together and explore how a landlord and her paralegal can effectively address them during the hearing.

1. A tenant needs to show that the landlord has given notice using forms N12 or N13. Most of the time, this isn’t really up for discussion. However, there are some cases where it can get a bit tricky. For example, if a landlord tells a tenant that she plans to sell the unit but doesn’t actually ask the tenant to move out, that message doesn’t count as a valid notice. As a result, the tenant wouldn’t be eligible for any compensation.
2. A tenant must prove that the N12 notice was given in bad faith. However, it often happens that a landlord’s intentions are sincere at the time she provides the notice, but then life takes an unexpected turn. You might have heard the saying, “Man plans, and God laughs.” This perfectly sums up how sometimes plans just don’t work out. A landlord might believe she is being honest while issuing the N12 notice. Still, circumstances can change, making it impossible to move in or have a family member or new buyer occupy the unit. For example, a buyer might ask the landlord to issue an N12 but back out of the purchase at the last minute. If the landlord can prove this situation, she may avoid any liability.
3. The tenant needs to show that she vacated the unit as a result of the notice N12 or application to the Board based on this notice. However, this isn’t always straightforward. From our experience as landlord paralegals, we’ve seen that tenants sometimes move out for different reasons. For example, tenants might receive an N12 notice but choose to leave because they have been planning to buy a house or are getting married and moving in with their partner.
4. The law stipulates that a tenant must demonstrate that the landlord, a family member, or a purchaser did not occupy the rental unit within a reasonable timeframe. However, the Residential Tenancy Act does not define what constitutes a reasonable time for occupation. Various circumstances, such as repairs and renovations, can lead to delays in occupying the unit. In some situations, it may be reasonable for the landlord or purchaser to take several months before moving in.
5. Finally, the law allows tenants to claim different types of damages through a T5 application. However, a tenant needs to show proof of the amount of damages and that they are reasonable. For example, if a tenant makes her case, the tenant could be entitled to the difference in rent for up to 12 months. However, it’s important to note that it wouldn’t be reasonable to claim this difference if the tenant moved from a basement studio apartment to a spacious two-bedroom condo.  

In summary, a landlord can defend a T5 application in various circumstances. Of course, it makes sense to engage a qualified landlord paralegal to consider the elements of the case and build a credible defence. Please get in touch with us if you need representation.