Residential Tenancies Act, 2006

 

The Residential Tenancies Act, 2006, came into force on January 31, 2007 and replaced the prevision Tenant Protection Act.  If you are a landlord then you need to take the time to review the legislation and learn about your rights and responsibilities.  You can view a copy of the  Act by following this link http://www.e-laws.gov.on.ca/DBLaws/Statutes/English/06r17_e.htm

Highlights of the Residential Tenancies Act include:

 Rent Increases

  • Vacancy de-control will continue
  • Annual Guideline Increases based on Ontario Consumer Price Index
  • Application Fees for Above Guideline Increases to be reduced
  • Capital Expenditures will be narrowly defined
  • Above guideline increases capped at 3% for a maximum of 3 years
  • The provision for "maximum" rent ends
  • Costs no longer borne provision means that once a capital item has been paid for the rent will decrease to reflect that component
  • No rent increases permitted where outstanding maintenance issues exist

Smart Meters (to date these provisions have not yet been proclaimed)

  • Rents can be reduced one year after a smart meter is installed to reflect the change in the composition of rent (this is for tenancies where electricity is included in the rent). The one year period is required to collect data related to the tenant’s average electricity consumption so the rent can be reduced to reflect that amount.
  • Tenants can file an application with the Landlord Tenant Board to require landlords to provide energy efficient appliances
  • Incoming tenants to be provided with information related to electricity consumption

Privacy

  • Landlords will have the right to enter the premises to inspect for maintenance (on notice) and will no longer have to reserve this right in the tenancy agreement
  • Realtors, with landlord’s authorization, can give written notice to show the rental unit on landlord’s behalf and show to prospective purchasers without the landlord being present

Termination

  • Own Use grounds for termination expanded to permit termination for "care giver" for owner, owner’s spouse, child or parent in same residential complex
  • Fast-track termination for disturbances when owner occupied and three or fewer rental units
  • Fast-track provision for extensive damage aimed at grow house operations
  • Once in tenancy provision where the tenant can have eviction stopped if s/he pays all arrears plus costs and sheriff’s fees
  • Belongings - once a tenant is evicted the landlord will have to make belongings available for retrieval up to 72 hours rather than the current 48 hours

Hearings

  • Ontario Rental Housing Tribunal to be renamed Landlord and Tenant Board
  • Default Orders will be eliminated and all applications will require a hearing
  • Tenants will be permitted to raise maintenance issues in non-payment applications without prior notice to the landlord
  • Eviction order may be issued to landlord as a result of tenant’s application that asks for termination

Miscellaneous

  • Improved client services for small-scale landlords
  • Landlords required to provide incoming tenants with printed material related to their rights
  • Heat will be added to the definition of vital services with dates specified for when it must be provided
  • Increase maximum penalties to $25,000 for individuals and $100,000 for corporations
  • The definition of tenant will be expanded to include spouse.