What We Did When A Tenant Refused To Pay Last Month’s Rent | Wayne Hillier

Jun 1, 2026

What do you do when a tenant says they are not paying their final month’s rent because you can just use their security deposit?

In this episode, Wayne and Gabby walk through a real situation from their rental portfolio where a tenant refused to pay May rent, stopped responding to communication, claimed they knew their rights, and suggested the damage deposit could be used instead.

Wayne and Gabby explain exactly how they handled it from April 15th through June 1st, including how they communicated with the tenant, why they filed with RTDRS early, how they planned for multiple outcomes, and what happened when they finally got access to the property.

They also discuss why possession matters so much, why landlords need to understand the difference between security deposits and rent, why documentation is critical, and why the right systems can turn a stressful tenant situation into a manageable business problem.

This episode is not about fearmongering. It is about showing landlords how to stay calm, follow the process, reduce risk, document properly, and protect their rental property business.

Wayne and Gabby also talk about the heavy rainfall in Edmonton, water issues at rental properties, June 1st rent collection, vacancies, inspections, garden suites, and the reality of managing a large rental portfolio.

If you are a landlord, self-managing investor, or someone who is nervous about tenant problems, this episode will help you understand how experienced landlords think through situations like this.

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What You’ll Learn in This Episode

• What happened when Wayne and Gabby’s tenant refused to pay final month’s rent
• Why tenants cannot simply use the security deposit as last month’s rent
• Why Wayne and Gabby gave notice that the lease would not be renewed
• Why the tenant going silent changed the strategy
• Why filing with RTDRS early helped reduce risk
• Why landlords should plan for multiple possible outcomes
• Why possession is one of the most important parts of landlording
• What happened when their agent went to the property on move-out day
• Why abandoned possession was one of the better outcomes
• Why cleaning, junk removal, and damages need to be documented
• Why security deposits should be handled properly
• Why landlords need written communication and strong records
• How Wayne and Gabby decide whether it is worth pursuing money owed
• Why tenant problems are manageable when you have systems
• Why proper screening reduces the chance of major tenant issues
• Why rental property reserves matter during vacancies and turnover
• Why self-managing rental properties remotely is possible with the right team
• Why real estate investing problems should be treated like business problems

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Upcoming Events

Edmonton Garden Suites 101
June 12, 2026
Edmonton, Alberta
www.reimasters.ca/edmontongardensuites101

REI Masters Edmonton Real Estate Investing Bus Tour
August 22, 2026
www.reimasters.ca/edmontonbustour

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About Your Hosts

Wayne & Gabby Hillier are full-time real estate investors and real estate investing coaches based in Edmonton, Alberta, Canada.

Through their REI Masters Mentorship Program, they help Canadians build long-term wealth using rental properties, BRRRRs, flips, joint ventures, wholesaling, seller financing, rent-to-own, garden suites, and creative financing.

The Canadian Real Estate Investing Morning Show is a daily podcast focused on helping Canadian investors build cash flow, scale their portfolios, and invest with confidence.

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Resources & Contact

Learn about the REI Masters Mentorship Program:
www.reimasters.ca

Bookkeeping & tax help for real estate investors:
www.finngo.com/rei

Get Wayne’s book:
The 5% Rule™ – A Real Estate Cash Flow Test for Canadian Investors
https://a.co/d/jdZaBXM

Submit a question or connect with us:
[e-mail]

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Thanks to Our Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor
calvinrealty.ca

Finngo Bookkeeping & Tax – For Investors, By Investors
www.finngo.com/rei

Kirkwood & Brennan Mortgage Group
[e-mail]