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As an Ontario landlord, it is essential to understand the rules and regulations that govern residential tenancies to succeed in the province's real estate industry. The Residential Tenancies Act is the primary legislation that outlines the responsibilities and rights of both landlords and renters, helping maintain a fair relationship for all parties involved. Many investors choose to work with management companies to handle the daily tasks and challenges of managing a unit effectively.
Failing to comply with the laws can lead to serious consequences, including financial losses, legal penalties, or even imprisonment under the Residential Tenancies Act. Common mistakes landlords make include failing to provide a safe living environment in a rental, not setting proper expectations or disclosures, ignoring the proper eviction process, increasing rent illegally, violating fire and building codes, neglecting to use the Ontario standard form of tenancy agreement, and not understanding the rules that govern rentals.
This is especially important for landlords in land lease communities, where unique requirements may apply. Furthermore, landlords must ensure compliance with the Human Rights Code, which prohibits discrimination in rental housing based on protected grounds such as race, gender, or disability.
If you’re unsure about what the act entails, our team has created this article to help you understand your rights, responsibilities, and obligations as a landlord. Whether you're managing a single rental unit or multiple properties, knowing the rules that govern rentals is key to thriving in Ontario's competitive rental market.
Tenancy Agreements
Simply put, the residential tenancy agreement, also known as a lease, is a contract between you and your renter stating that they will pay rent for the agreed monthly amount in exchange for the right to occupy the rental unit and help cover costs such as the landlord's property taxes.
Before 2018, a specific contract form was not required to be used, and all parties involved in the rental agreement were free to write their own versions of the contract, as long as the terms and any notice requirements were clearly outlined. However, with the introduction of the rent deposit system, landlords and residents now follow more standardized practices to ensure both parties' rights are protected.
It is essential to understand that eviction can occur if the renter fails to pay rent or violates the terms of the tenancy agreement, and the eviction process must follow legal protocols. A landlord is responsible for maintaining the rental unit, including ensuring that necessary repairs are completed. If tenants fail to fulfill their obligations, such as not paying rent or neglecting to request repairs, the investment owners may begin the eviction process.
In the case of eviction, landlords must ensure that all steps are followed, including providing the resident with appropriate notices and waiting the required time before proceeding. Additionally, landlords are required to make necessary repairs and address any tenant concerns, ensuring that the property is habitable. If the resident has paid the rent but still refuses to leave or comply with the terms of the residential tenancy agreement, the owners may need to initiate the eviction process to protect their rights.
However, effective April 30, 2018, Ontario decided to introduce the use of the standard Ontario lease agreement form as a requirement for all tenancy agreements moving forward. However, specific rental scenarios such as the following are exempted from using the standard form of lease:
- Trailer parks or mobile home communities.
- A unit in a home care or retirement home.
- Specific supportive and social housing.
What is great about the new format is that it is written in an easily understandable, conversational language with minimal legal jargon. Some information that is highlighted in the residential tenancy agreement includes:
- The monthly rent to be paid.
- Rent due date and interval.
- What is included in the rent such as air conditioning, parking, wifi, etc.
- Specific terms and conditions.
- Itemized landlord and renter responsibilities.
When working with a professional property management company in Ontario, you should be assured that they adhere to the landlord-tenant guidelines and have a standard tenancy agreement template ready.
The Landlord-Tenant Act in Ontario
The Ontario Landlord-Tenant Act highlights the owners’s and renter’s rights and responsibilities once they enter the residential tenancy agreement. This is governed by the Landlord and Tenant Board to ensure that the rights and responsibilities of both the owner and renter are balanced and oversee the dispute resolution, regulate rent, and enforce proper notice periods for various actions. The Act also includes provisions to ensure that any rent price increases comply with the regulations and that tenants are given adequate notice of changes.
Canadian Landlord-Tenant Act in Ontario: Rights and Responsibilities
Owners and tenants alike have corresponding responsibilities and rights under the Act. The Landlord Tenant Board (LTB) created a brochure that outlines their roles, how to reach them, and detailed tenant and landlord responsibilities and rights. To print or get a copy, you can go to the nearest Landlord and Tenant Board office, service centre, or find it online.
Understanding the Complete Ontario Landlord-Tenant Act
Residential management and rental services, including landlords, must be knowledgeable about the rules and regulations under this act.
You must always keep a copy of all resources so they are easily accessible when needed. Make it a habit to review the updated legal documentation of the Ontario Residential Act online. Their website also includes a list of frequently asked questions as well as explanations of the law as instituted by the Landlord and Tenant Board, including regulations related to rent and the proper handling of rent disputes.
Evicting a Tenant
Both owners and tenants can prematurely end the tenancy agreement depending on the circumstances. The process will be different for both parties. Rental owners must always issue a notice addressed to the renters. Like the lease agreement, ending a tenancy agreement also requires an owner to use a specific form.
It is crucial that you are well-versed with the eviction law in Ontario as you are expected to abide by it and make decisions based on the regulation. Once all efforts have been made to salvage the situation in accordance with the act, you can now serve the eviction notice to the resident.
If, after receiving the notice, the tenant refuses to move out, you can ask Landlord and Tenant Board to intervene and seek help in ending the residential tenancy. Both sides need to present their statements or arguments during the hearing organized by the Landlord and Tenant Board and base their decisions on those.
Rent Increases
A rent increase is set every year except for buildings constructed on or after November 15, 2018. The 2023 increase is at 2.5%. You can find the updated guideline here.
If you feel that the set increase percentage is not reasonable for your property, you can apply to the Landlord and Tenant Board. Your request will be evaluated on specific conditions that apply to your situation.
As an Ontario landlord, you are allowed to increase the rent once every 12 months. When doing so, ensure that you provide a 90-day written notice before the rent is set to increase. Use only the official form which is available for download on the Landlord and Tenant Board website.
You are also required to pay the tenant interest on the rent deposit every 12 months. The amount of interest paid to the renter is based on the increase guideline decided by the province of Ontario each year.
Conclusion
Always be updated with the laws and regulations when managing your rental properties. Make it a habit to read, comprehend, and abide by the Landlord and Tenant Act in Ontario. Regardless of how simple you think the violation is, you will still be considered non-compliant and could be a reason for the board to side with the resident.
If you need assistance with managing your rental properties and navigating the Ontario Landlord Tenant Act, reach out to the team at Rent In Ottawa Property Management today!
We specialize in managing single and multi-family homes and our mission is to deliver the most attentive and fine-tuned management care possible to landlords and tenants in Canada's Capital. We look forward to working with you. Experience the benefits of our services today!
Disclaimer: This blog isn’t intended to be a substitute for professional legal advice. Laws change and this information may become obsolete at the time you read it. For further help, please get in touch with a qualified attorney or an experienced property management company.
