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The Ontario legislature has passed the new Residential
Tenancies Act (the “Act”), which had been proclaimed to take effect since
January 31, 2007. The Act will affect both tenants and landlords of residential
properties (but not commercial properties) and as such we would like to
introduce some of its highlights to everyone concerned.
Maintenance: Tenants
of poorly maintained buildings may now apply to the Landlord and Tenant Board (the “Board”) to stop
all rent increases. Landlords will be able to inspect rental units for
maintenance problems. They will be required to give their tenants 24-hour
notice of this inspection. This will help landlords fix maintenance issues
before they became serious.
Annual rent increase guideline: The annual rent increase guideline means the
maximum percentage that landlords can raise rents without getting permission
from the Board. Under the Act, the guideline will be more stable and never
higher than inflation as it will be based on the Ontario Consumer Price Index
(CPI). The guideline
for 2007 is 2.6%.
Landlord and Tenant Board: Under the Act, the Board is
created to replace the Ontario Rental Housing Tribunal. The Board has made its
processes fairer and more accessible for both tenants and landlords by lowering
the application fees. Every tenant facing eviction will have access to a
hearing or mediation. The Board will consider all issues raised by the tenant
(e.g. poor maintenance) and order any available remedies to resolve these
issues.
Excessive or Willful Damage to a Unit: Under
the Act, if a tenant is purposely causing wilful and/or excessive damage in a
rental unit or building, a landlord will have more remedies to deal effectively
with this situation. These new remedies will cut the eviction process
approximately in half.
Causing a Disturbance in a Landlord’s Home: Under the Act, a landlord will have a faster remedy available to
deal with a tenant causing a disturbance, such as playing loud music all night.
This applies to a tenant who has a rental unit in a building with three or
fewer apartments, and where the landlord also resides . This will cut the
eviction process approximately in half.
Rent Discounts: Under the Act, landlords will be
able to give up to 3 months’ free rent to tenants. Landlords could use this as
a way to attract new tenants, while still keeping the original rent in place.
Rent Deposit: The Act retains the provisions
of limiting the amount of rent deposit that a landlord may collect from the
tenant to the lesser of the following: (a) the amount of rent for one rent period and
(b) the amount of rent for one month.
Post-Dated Cheques: The Act also retains the
provisions of prohibiting a landlord from requiring the tenant to pay rent by providing post-dated cheques
or other negotiable instruments or by automatic debiting of the tenant’s
account at a financial institution, automatic charging of a credit card or any
other form of automatic payment.
Highlights of the Act stated herein are not meant to be
exhaustive. Please refer to the Act for further details. Furthermore, our
lawyers would be pleased to offer advice should you have doubts on your rights
as a tenant or landlord of residential properties.
Prepared by Iris Chung
Metcalfe, Blainey & Burns LLP
February 2007
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