Landlord's Ledger: A Vital Document to Establish Rent Arrears at an LTB Hearing

Question: What is the importance of maintaining an accurate landlord's ledger?

Answer: An accurate landlord's ledger is essential for tracking financial transactions, ensuring compliance during hearings at the Landlord and Tenant Board, and avoiding the dismissal of applications due to inaccuracies. Keeping detailed records supports claims and helps resolve disputes effectively.

Landlord's Records & Supporting Documentation

To the Landlord and Tenant Board (LTB) being a landlord is running a business.  When it comes to official hearings, they want certain paperwork, and one of the crucial documents they require is called the "ledger." This ledger plays a vital role as it offers a comprehensive financial and accounting history of the tenancy.

This is an accounting document that you will need to provide prior to the filing of an application or the service of a notice as this is the information that the notices and applications are based on.  Inaccurate and partial accounting information may result in an application being dismissed.

Part 1: Understanding the Landlord's Ledger

Think of a landlord's ledger as an official record that tracks all financial transactions between a tenant and the landlord in a rental agreement.  Whether it's in physical or digital form, it generally includes these critical elements:

1.      The designated rent amount,

2.      The actual payment amount received,

3.      Date of payment,

4.      The purpose of the payment, such as rent, fees, or deposits, and

     5.      A running total indicating any unpaid sums.

Maintaining Accurate Records

To keep an accurate ledger, it's advisable to use a well-organized table to record these details.  Regular updates are essential to ensure accuracy.  Beyond traditional payment methods, like cash or checks, it's essential to include electronic payments, such as PayPal or Venmo, in your ledger.  You can consider using templates or specialized software to streamline the process.

Keep it Simple

Most legal people are not “numbers” people.  It is essential that you present your information in a simple and concise format.  Do not use elaborate spreadsheets with many columns with lots of bold fonts and bright colours.  Keep it simple.  You will have to present your numbers to a decision maker who you want to understand, and agree with, what you are claiming in a very short time frame.

Identifying Discrepancies

Detecting discrepancies within the rental ledger is critical for maintaining precise financial records, particularly during disputes where this data serves as crucial evidence.  When the LTB finds discrepancies within your data set, they will, more often then not, rule on the side of not awarding the damages.

Here are some tips to effectively manage your rental ledger:

1.  .     Periodically cross-reference bank statements and receipts with the ledger.
2. .      Document any changes in the rent amount in accordance with lease agreements.
3.       Verify tenant details to ensure consistency with lease agreements and payment records.
4.  .    Enter only one item per line in the table, do not ‘stack’ multiple items or numbers all on one row.
5. .     Do not ‘pool’ or combine values.  Keep one ledger per rental unit and use one line per payment if there are multiple payments from multiple tenants per rental unit.  You will need  to match the payments in your ledger to your bank statements.

Part 2: Supporting Documentation

Every entry in the ledger should be backed by supporting documentation.  In essence, if you can't provide evidence to the Adjudicator, it won't carry much weight.  Unsupported claims tend to be dismissed.

Proving non-payment of rent can be challenging since it's difficult to provide documentation for something that didn't occur.  However, the landlord's ledger effectively establishes payment history, shedding light on payments made and missed.  Once arrears are established, the responsibility shifts to the tenant to provide evidence of payment.

Essential Documentation Includes:

1. .      Bank statements,
2. .      Payment receipts,
3. .      Copies of cheques or canceled cheques,
4. .      Correspondence, such as emails and communications regarding unpaid rent,
5. .      The executed lease agreement,
6. .      Any NSF charges actually paid, and
7. .      Any additional documentation supporting the claim of non-payment.

Important Note:

While it's common to include utility payments (e.g., electricity, water) alongside rent payments in the same ledger, this practice can lead to confusion during hearings.  The LTB treats unpaid rent and overdue utility charges as separate issues, necessitating separate applications and corresponding ledgers to ensure clarity and ease of understanding during proceedings.

Example Landlord's Ledger:

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