Landlord rights and restrictions in Ontario
Navigating the relationship between landlords and tenants in Ontario requires a deep understanding of the legal landscape. Ontario’s Residential Tenancies Act (RTA) is designed to balance the rights and responsibilities of both parties, ensuring a fair and equitable tenancy. In this article, we will explore what landlords can and cannot do, providing detailed insights into each aspect of the landlord-tenant relationship.
Entering the Rental Unit
What Landlords Can Do:
Landlords have the right to enter a rental unit, but they must adhere to strict rules to respect the tenant’s privacy. The RTA outlines specific situations where entry is permissible, including:
Repairs or Maintenance: Landlords can enter the unit to perform necessary repairs, upkeep, or maintenance to ensure the property meets safety and living standards.
Showing the Unit: If the landlord intends to sell the property or if the tenant has given notice to vacate, the landlord may show the unit to prospective buyers, mortgagees, or future tenants.
Inspections: Regular inspections are allowed to check for maintenance needs, ensure lease compliance (e.g., checking if unauthorized pets are in the unit), or assess the general condition of the property.
In all these cases, landlords must provide written notice at least 24 hours in advance. The notice should include the reason for entry, the date, and a time frame that falls between 8:00 a.m. and 8:00 p.m. Entry without notice is permitted only in cases of emergency, such as a fire, gas leak, or water damage.
What Landlords Cannot Do:
Landlords cannot enter the rental unit without notice or outside the stipulated hours (8:00 a.m. to 8:00 p.m.), except in emergencies. Additionally:
Repeated or Unnecessary Entries: Even with proper notice, landlords cannot make excessive entries that disrupt the tenant's quiet enjoyment of the property. Continuous entries without a valid reason could be deemed harassment.
Entering Without Consent: Landlords cannot enter the unit without proper notice simply because they own the property. Doing so violates the tenant's right to privacy and can lead to legal action by the tenant.
Increasing Rent
What Landlords Can Do:
Ontario has strict regulations governing rent increases. Landlords can increase the rent annually, but the increase must align with the guideline set by the Ontario government. For instance:
Annual Rent Increase: The guideline for 2024 is capped at 2.5%. This means if the monthly rent is $1,000, the maximum increase allowed without LTB approval would be $25, making the new rent $1,025.
Notice Requirement: Landlords must provide tenants with 90 days’ written notice before the increase takes effect. This notice must clearly state the current rent, the amount of the new rent, and the effective date of the increase.
What Landlords Cannot Do:
Landlords are prohibited from increasing rent outside the terms specified by law:
Above-Guideline Increase: Any rent increase above the guideline requires an application to the LTB. The board may grant an above-guideline increase if the landlord has incurred significant costs, such as capital expenditures or increased municipal taxes.
Frequent Increases: Rent can only be increased once every 12 months. Attempting to increase the rent more frequently, even by a small amount, is illegal.
Increases During Fixed-Term Leases: If the tenant is under a fixed-term lease, rent cannot be increased during the lease period unless the lease specifically allows for such an increase.
Evicting a Tenant
What Landlords Can Do:
Eviction in Ontario is a regulated process with specific legal grounds. Landlords can evict a tenant for reasons such as:
Non-Payment of Rent: If a tenant fails to pay rent, the landlord can issue a Notice to End a Tenancy Early for Non-payment of Rent (Form N4). If the tenant doesn’t pay the owed rent within 14 days (or 7 days for daily or weekly tenancies), the landlord can apply to the LTB for an eviction order.
Breach of Lease Terms: Common breaches include unauthorized occupants, illegal activities, or causing damage to the property. The landlord must provide the tenant with a Notice to Terminate a Tenancy Early (Form N5) for these breaches, allowing the tenant a period to correct the issue.
Personal Use of the Unit: If the landlord, a family member, or a caregiver intends to occupy the rental unit, the landlord can evict the tenant with a Notice to End your Tenancy for Landlord’s or Purchaser’s Own Use (Form N12). The landlord must give at least 60 days’ notice, and the tenancy can only be terminated at the end of a lease term.
What Landlords Cannot Do:
Landlords must follow due process when evicting a tenant. Illegal actions include:
“Self-Help” Evictions: Locking the tenant out of the property, removing their belongings, or shutting off utilities to force them out is illegal and can result in significant penalties, including fines and damages payable to the tenant.
Evicting Without a Valid Reason: Landlords cannot evict a tenant without cause or for reasons that are not legally recognized. Retaliatory evictions, such as removing a tenant for filing a complaint or requesting repairs, are prohibited.
Eviction Without LTB Approval: Even if the tenant does not comply with the eviction notice, landlords cannot physically remove the tenant. The landlord must apply to the LTB for an eviction order and, if granted, the eviction is carried out by the Sheriff’s office.
Requesting a Security Deposit
What Landlords Can Do:
Ontario law allows landlords to request a rent deposit, but its use is strictly regulated:
Last Month’s Rent Deposit: Landlords can request a deposit equivalent to one month’s rent. This deposit is applied to the tenant’s last month of tenancy and must be returned with interest if the tenant vacates the unit earlier.
Interest on Deposit: Landlords must pay interest on the rent deposit annually. The interest rate is the same as the rent increase guideline for that year.
What Landlords Cannot Do:
The RTA places firm restrictions on other types of deposits:
No Security or Damage Deposits: Unlike some jurisdictions, Ontario does not allow landlords to request deposits for potential damages or for cleaning the unit at the end of the tenancy.
No Pet Deposits: Landlords cannot charge an additional deposit for pets. While landlords can include a “no pets” clause in the lease, it is generally unenforceable unless the pet poses a specific risk (e.g., allergies in a shared living space).
Post-Dated Cheques: Landlords cannot insist on post-dated cheques or automatic withdrawals as a condition of the lease. Tenants have the right to choose their method of payment.
Making Repairs and Maintenance
What Landlords Can Do:
Landlords are responsible for maintaining the rental property in a state that meets health, safety, and housing standards:
Timely Repairs: Landlords must address maintenance issues promptly. For example, fixing a broken heater during winter must be done immediately to ensure the property remains habitable.
Responsibility for Major Repairs: The landlord is responsible for structural repairs, plumbing, electrical systems, and other major components. Regular maintenance, such as clearing gutters or fixing leaks, also falls under the landlord’s duties.
What Landlords Cannot Do:
Landlords cannot neglect their maintenance responsibilities or pass them onto tenants:
Refusing or Delaying Repairs: If the landlord fails to make necessary repairs, tenants can apply to the LTB for an order to enforce the repairs. Tenants may also request a rent reduction or withhold rent if the issue significantly affects their living conditions.
Charging Tenants for Repairs: Landlords cannot charge tenants for repairs unless the tenant caused the damage through negligence or intentional acts. Even in such cases, the charge must be reasonable and reflect the actual cost of the repair.
Communicating with Tenants
What Landlords Can Do:
Effective communication is key to a successful landlord-tenant relationship. Landlords are entitled to contact tenants regarding:
Rent Payments: Reminders or notices about rent due dates, increases, or arrears.
Maintenance Requests: Scheduling repairs, inspections, or notifying tenants of planned maintenance.
Lease Renewals or Terminations: Discussing lease renewal terms, changes to the lease, or providing notice of lease termination.
What Landlords Cannot Do:
Landlords must ensure their communication with tenants is respectful and professional:
Harassment: Repeated, aggressive, or threatening communication is considered harassment. This includes excessive phone calls, emails, or in-person visits meant to pressure or intimidate the tenant.
Invasion of Privacy: Landlords cannot inquire into a tenant's personal life beyond what is necessary for managing the property. Questions about a tenant’s visitors, lifestyle choices, or financial situation are generally off-limits unless directly related to the tenancy.
Retaliation: Landlords cannot use communication as a tool for retaliation, such as issuing unfounded warnings or making baseless accusations after a tenant exercises their legal rights.
Conclusion
Being a landlord in Ontario requires a careful balance of rights and responsibilities. By understanding and adhering to the legal framework set out by the Residential Tenancies Act, landlords can protect their property while respecting the rights of their tenants. This not only ensures compliance with the law but also fosters a positive and cooperative landlord-tenant relationship, which is essential for a smooth and successful rental experience. Whether you’re a seasoned landlord or new to the rental market, staying informed about
