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Renting in Ontario
Governing or Regulatory Body
Landlord and Tenant Board
Name of Act / Regulations
Residential Tenancies Act (RTA)
Statutory Powers Procedure Act
Types of Housing/Living Arrangements Covered by the Provincial Legislation
Rental residential housing
Exemptions: co-op housing when occupied by a member of the co-op, vacation, seasonal or temporary accommodations: hotels, motels or motor hotels, resorts, lodges, tourist camps, cottages or cabins, inns, campgrounds, trailer parks, tourist homes, bed and breakfasts vacation establishments or vacation homes, staff accommodation for farm employees, accommodation in a business or enterprise, non-profit housing in some situations, penal and correctional facilities, hospitals, nursing homes, rehabilitative or therapeutic facilities, short term emergency shelters, staff or student accommodations provided by an educational institution, accommodation whose occupant or occupants are required to share a bathroom or kitchen facility with the owner, the owner's spouse, same-sex partner, child or parent or the spouse's or same-sex partner's child or parent, and where the owner, spouse, same-sex partner, child or parent lives in the building in which the living accommodation is located.
Types of Rental Periods
All types of rental periods are allowed; however, the Residential Tenancies Act (RTA) takes precedence over leases. In other words, when terms in the lease do not comply with RTA, the RTA takes precedence over the lease.
Is a signed lease required?
No. If the tenancy agreement is not in writing, the tenant must be provided with written notice of the legal name and address of the landlord for the purpose of giving notice or delivering other documents. The landlord must provide the tenant with this information within 21 days after the tenancy begins. If the landlord fails to provide the required information, the tenant's obligation to pay rent is suspended until the landlord complies.
Is a signed move in/move out checklist required?
No. A checklist is recommended but not required.
Deposits
Landlords can collect a rent deposit up to one month's rent, but this deposit is not a security deposit. In Ontario, security deposits are not allowed. Last month's rent may be collected as a deposit, but it can never be used to apply to damages. Landlords collect the last month's rent, or if rent is paid weekly the last week's rent, at the beginning of the tenancy and pay the tenant interest based on the Ontario Consumer Price Index (the rate of inflation for the year running from June to May) at the beginning of the next year, to be paid out every year. This deposit may only be applied to the last month's rent. It is not considered a damage or security deposit.
Key Money
Requiring key money is illegal.
Post-dated Cheques
Post-dated cheques can be suggested, but a person cannot be refused a rental unit for refusing to give them. Landlords must provide tenants with a rent receipt.
Renewal of a Lease Term
The landlord and tenant can agree to extend or renew the tenancy on the same terms and conditions, or on modified terms and conditions. If both parties can’t reach an agreement once the lease expires, the tenancy automatically becomes a month-to-month arrangement.
Terminating a Lease: Notice and Timing
Prior to a lease terminating, it is the responsibility of landlord and tenant to re-negotiate terms or terminate the lease. Tenants can give notice during a fixed term lease, provided that the date of termination is not any earlier than the last day of tenancy. Landlords may only terminate a tenancy for specified reasons as set out in the legislation and cannot terminate simply because a fixed term has expired. When a fixed term tenancy goes to a month to month term, the landlord cannot force a tenant to sign another lease or agree to another fixed term. When a lease is renewed, unless otherwise agreed, other than the new term of the lease, all other conditions of the lease remain the same with the exception of rent increases, which are not automatically carried forward. The landlord can raise the rent with 90 days written notice.
Landlords must provide notice in writing to the tenant, and required notice times vary depending on the reasons for the notice. Please refer to the detailed online and print brochures: "Terminating a Tenancy by a Tenant" and "Reasons for Terminating a Tenancy by a Landlord".
The tenant can terminate daily or weekly tenancies with 28 days written notice. Otherwise tenants must give 60 days notice when moving.
Assignments and Sublets
Landlords must approve or disapprove, in writing, the tenant's request to sublet. The original tenant can dispute a landlord's decision to reject the sublet by applying to the Landlord and Tenant Board using the appropriate form. If the original tenant wants to return to the premises after the sublet period and renew the lease, he or she would be subject to a rent increase upon renewal.
Rent Increases: Notice and Timing
Ontario sets rent guidelines each year. Landlords must give 90 days written notice and can only increase the rent once every 12 months. Rent increases must follow the provincial guidelines published each August. To increase rent beyond the guideline, the landlord must apply to the Landlord and Tenant Board for permission. (Capital expenses are capped at 3 per cent above the guideline, per year for a maximum of 3 years.)
If there are serious outstanding maintenance issues a tenant can apply to the Landlord and Tenant Board to stop all rent increases and above guideline increases. In severe cases tenants would pay all or portions of their rent to the Board until maintenance and repair issues were resolved.
Note: Rent increase rules apply to an existing tenancy. Once the tenant moves, the landlord can increase the rent for that unit to whatever the market will bear.
Late Rent Payments
The day after rent is due, if it is unpaid; the landlord can give a “Notice to terminate for nonpayment of rent.” The tenant then has 14 days if they are monthly or yearly renters, and 7 days if they are daily or weekly renters, to pay. If this grace period passes and no rent has been paid, the landlord can file an application to the Landlord and Tenant Board for rent arrears.
Evictions
There are numerous grounds for eviction but the main reason is rent arrears. Evictions for rent arrears in Ontario proceed as follows: One day the tenant is late paying rent; landlord serves notice to tenant; tenant has 14 days to pay rent; on the 15th day landlord pays a filing fee for Application to End a Tenancy for Nonpayment of Rent and to Collect the Rent the Tenant Owes; the Landlord and Tenant Board gives notice of hearing as soon as possible; landlord serves Notice package on the tenant; landlord signs the certificate as proof; a Notice of Hearing is issued.
Unlike the previous legislation, there is no default process under the RTA and all applications will go to a hearing. The hearing is held as soon as possible. If the landlord is successful in their claim, the landlord arranges with the provincial Sheriff to evict the tenant.
Landlords can 'fast-track' evictions of tenants who cause wilful and excessive damage. In this case the notice period is shortened from 20 to 10 days and tenants cannot void the notice by repairing the damage. In cases of excessive wilful damage eviction can be immediate.
Fine Points
Permitting Landlord Entry to the Premises (Times and Reasons)
The situations where a landlord may enter the premises may be written into the lease. Typically, landlords must give 24 hours written notice. The written notice must specify the reason for entry, the day of entry and a time of entry between 8 a.m. and 8 p.m. A landlord can enter a unit without written notice if there is an emergency or if the tenant consents to the entry.
May the tenant withhold rent for repairs?
No.
Changing Locks
Allowed provided the landlord gives the tenant a key for any new lock.
Pets and Smoking
May a landlord refuse to rent to a tenant who has pets or smokes?
The Residential Tenancies Act (RTA) does not cover individuals before they become tenants, so a landlord could refuse to rent on the basis of smoking and/or pets.
If a no pets and no smoking clause is written into a lease and the landlord discovers that the tenant has a pet and/or smokes in the rental unit, is this grounds for the landlord to evict the tenant?
A landlord cannot evict a tenant because they have a pet in violation of a "no pets" clause in the lease. The RTA does not address smoking. However, a landlord may have grounds to evict a tenant, either for having a pet or for smoking, if the pet or smoke damages the property or bothers other tenants.
Other
Under the RTA, February is considered to have 30 days for the purpose of the tenant giving a termination notice.
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