Payment Plans and L4 Applications

Question: What are the benefits of a consent repayment order under section 78 of the Residential Tenancies Act?

Answer:   A consent repayment order allows landlords to recover rent arrears while providing tenants with a manageable repayment plan.  With Lynxs Paralegal, landlords can ensure these agreements are structured effectively, enhancing enforceability and expediting the eviction process if needed.  This dual benefit of recovering funds and streamlined enforcement safeguards landlords' interests while maintaining fairness in housing.

Entering into Consent Repayment Orders with s.78 Consequences on L1 Applications at the Landlord and Tenant Board

When a landlord files an L1 Application to Evict a Tenant for Non-Payment of Rent and to Collect Rent the Tenant Owes under the Residential Tenancies Act, 2006 (“RTA”), the matter may be resolved prior to or at the hearing by way of a consent repayment order. While such agreements can be a practical way to avoid protracted proceedings, they carry important legal implications—particularly when s.78 of the RTA is invoked.

What Is a Consent Repayment Order?

A consent repayment order is a formal agreement between a landlord and tenant, usually reached in the course of an L1 proceeding, in which the tenant acknowledges arrears of rent and agrees to a specific repayment schedule. The agreement is incorporated into an order of the Landlord and Tenant Board (“LTB”), making it legally enforceable.

Consent repayment orders are often used when the tenant wishes to remain in the rental unit but is unable to immediately pay the arrears in full. The order will set out the amounts owing, the payment deadlines, and any ongoing obligations for rent payment.

The Effect of s.78 of the Residential Tenancies Act, 2006

Section 78 of the RTA is a powerful enforcement provision that can be incorporated into a consent order. Under s.78:

If the tenant fails to comply with the terms of a Board order to pay arrears of rent or to comply with any other term of the tenancy agreement, the landlord may, without further hearing, request that the Board issue an order terminating the tenancy and evicting the tenant.

In practical terms, this means:

• If the tenant misses any scheduled payment in the consent repayment plan,
• Or fails to pay ongoing rent as it becomes due,
• The landlord can apply to the Board using an L4 Application to Evict a Tenant for Non-Payment of Rent and Collect Rent the Tenant Owes – Based on a s.78 Order, without giving the tenant advance notice or attending a further hearing.

This streamlined enforcement mechanism can result in the issuance of an eviction order without the delays typically associated with a full hearing.

Recovery of Funds Even in the Event of Default

One of the key advantages of entering into a consent repayment order with s.78 consequences is that the landlord retains the ability to recover at least a portion of the arrears, even if the tenant eventually defaults on the agreement. Payments made prior to the default remain enforceable and are not reversed.

In such cases:

• The landlord may have already received partial arrears repayment before the breach occurs;
• Upon default, the eviction process via an L4 Application based on s.78 proceeds on a similar timeline to that of a standard L1 order—often resulting in termination and vacant possession within the same general timeframe that the Board would typically award after a contested hearing;
• This arrangement can reduce financial loss by securing early payments while still preserving the landlord’s right to expedited enforcement.

Effectively, a properly structured consent repayment order provides two concurrent benefits: early partial recovery of funds and a clear, accelerated path to eviction in the event of tenant non-compliance.

Drafting Considerations for Landlords

When entering into a consent repayment order that includes s.78 consequences, landlords should ensure that:

• Arrears are accurately calculated – The order must specify the exact amount owed as of the date of the agreement.
• Payment schedule is clear – Payment dates and amounts should be unambiguous and leave no room for interpretation.
• Ongoing rent obligations are addressed – The order should require that current rent continues to be paid on time, in addition to the repayment installments.
• Trigger for s.78 is explicit – The order should clearly state that failure to make any payment on time constitutes a breach that allows the landlord to seek eviction via an L4 Application without further notice.
• Tenant understands the consequences – Although the LTB adjudicator will generally confirm the tenant’s understanding, landlords should ensure that the tenant’s consent is informed to minimize later disputes about procedural fairness.

Risks and Best Practices

While s.78 gives landlords significant enforcement leverage, it also requires precision in execution:

• If the repayment plan is unrealistic, default may occur quickly, leading to additional enforcement proceedings.
• Any ambiguity in the order may allow the tenant to dispute a breach.
• Landlords must use the correct L4 Application for Enforcement of s.78 Orders when seeking eviction and collection after default.

Best practice is to ensure that the order is drafted in clear, strict terms, and that all calculations are correct at the outset.

How Lynxs Paralegal Can Assist

At Lynxs Paralegal, we assist landlords in:

• Preparing and negotiating consent repayment orders during L1 proceedings;
• Structuring repayment schedules that are both fair and enforceable;
• Incorporating s.78 provisions effectively;
• Enforcing s.78 orders through L4 Applications at the LTB.

Our experience ensures that your order is both legally sound and practically enforceable, reducing the risk of procedural delays and maximizing your ability to recover rent arrears.

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