Landlord and Tenant

The relationship between landlords and tenants in Ontario is governed by a comprehensive piece of legislation known as the Residential Tenancies Act, 2006 (RTA). This Act outlines the rights and responsibilities of both parties, aiming to create a fair and balanced framework for residential tenancies. Understanding the key aspects of this legislation is crucial for both landlords and tenants to ensure a smooth and legally sound tenancy.

The Residential Tenancies Act (RTA)

The RTA applies to most residential rental units in Ontario, including houses, apartments, condominiums, and basement apartments. However, it does not cover certain types of accommodations, such as those in hospitals, educational institutions (if rented by the institution), and commercial properties. The Landlord and Tenant Board (LTB) is the administrative tribunal responsible for resolving disputes between landlords and tenants under the RTA.

Tenancy Agreements

A tenancy agreement is a contract between a landlord and a tenant that outlines the terms of the rental. It is advisable to have a written tenancy agreement to avoid misunderstandings. Ontario has a standard form of lease that landlords are required to use for most new tenancies. This standard lease includes essential information such as:

• Identification of the parties: Names and addresses of the landlord and tenant(s).
• Rental unit address: The specific address of the property being rented.
• Term of the tenancy: Whether it is a fixed-term (e.g., one year) or an indefinite (month-to-month) tenancy.
• Rent amount and due date: The amount of rent and when it is to be paid.
• Included services: Any services included in the rent, such as utilities (hydro, water, gas), parking, or cable television.
• Rules and regulations: Any rules or terms related to the rental unit or building, such as pet policies or smoking restrictions.

If a landlord fails to provide a tenant with a standard lease within 21 days of a written request, the tenant may withhold one month’s rent. If the landlord still does not provide the lease within 30 days of the rent being withheld, the tenant does not have to repay that month’s rent.

Rent

Landlords are entitled to collect rent in full on the agreed-upon due date. They must provide a receipt for rent paid upon request. Landlords cannot require post-dated cheques or automatic debit as the only form of rent payment.

Rent Increases: In Ontario, rent increases are regulated. Landlords can only increase the rent once every 12 months and must provide tenants with at least 90 days’ written notice using the proper LTB form (N1 or equivalent). The amount of the rent increase is subject to an annual guideline set by the Ontario government. For 2025, the rent increase guideline is 2.5%. However, there are specific circumstances under which a landlord can apply to the LTB for an increase above the guideline (e.g., significant capital expenditures). Tenants have the right to dispute an above-guideline rent increase by applying to the LTB within 12 months of the increase taking effect.

Late Rent: If rent is not paid on the due date, it is considered late. Landlords can issue a Notice to End Tenancy Early for Non-payment of Rent (N4 form). The notice period depends on the frequency of rent payment (e.g., 14 days for monthly tenancies). If the tenant pays the outstanding rent within the notice period, the notice is voided, and the tenancy continues. If the tenant does not pay, the landlord can apply to the LTB for an eviction order.

Landlord’s Responsibilities

Landlords have several key responsibilities under the RTA, including:

• Maintaining the property: Landlords must keep the rental property in a good state of repair and comply with health, safety, and housing standards. This includes ensuring that essential services like heat, water, and electricity are functioning. They are responsible for repairs even if the tenant was aware of the issues before moving in.
• Providing essential services: Landlords must ensure the provision of vital services such as heat (from September 1st to June 1st, maintaining a minimum temperature of 20°C, though local bylaws may have different requirements), hot and cold water, electricity, and gas. They cannot shut off these services, even if the tenant owes rent.
• Respecting tenant’s privacy: Landlords can only enter a rental unit for specific reasons and must provide at least 24 hours’ written notice before entering, except in cases of emergency, if the tenant consents at the time of entry, or if the tenancy agreement requires the landlord to clean the unit (between 8 am and 8 pm). Permitted reasons for entry with notice include repairs, maintenance, inspections, and showing the unit to prospective tenants after a notice of termination has been given.
• Avoiding interference with reasonable enjoyment: Landlords must not interfere with the tenant’s reasonable enjoyment of the rental unit. This includes refraining from excessive noise, harassment, or unreasonable entry into the unit.
• Ensuring safety and security: Landlords are responsible for maintaining the safety and security of the property, including ensuring that locks are in good working order and common areas are safe.
• Not discriminating: Landlords cannot discriminate against prospective or current tenants based on grounds protected under the Ontario Human Rights Code, such as race, ethnic origin, religion, sex, sexual orientation, disability, age, marital status, or family status.

Tenant’s Responsibilities

Tenants also have responsibilities under the RTA, including:

• Paying rent on time: Tenants are obligated to pay their rent in full on the agreed-upon due date.
• Maintaining cleanliness: Tenants are responsible for keeping their rental unit reasonably clean.
• Avoiding damage: Tenants are responsible for repairing any damage to the rental unit caused by them or their guests, beyond normal wear and tear.
• Not interfering with others: Tenants must not interfere with the reasonable enjoyment of the property by the landlord or other tenants (e.g., by making excessive noise).
• Complying with the tenancy agreement: Tenants must adhere to the terms and conditions outlined in their tenancy agreement.
• Notifying the landlord of issues: Tenants should promptly inform the landlord of any necessary repairs or maintenance issues.

Ending a Tenancy

A tenancy can be ended by either the landlord or the tenant, but only in accordance with the rules set out in the RTA.

By the Tenant:

• Fixed-term tenancy: A tenant must typically stay for the entire term of a fixed-term agreement. If they leave early without the landlord’s consent, they may be responsible for the remaining rent. However, there are exceptions, such as if the tenant has experienced domestic violence or if the landlord has breached the RTA. To end a fixed-term tenancy at the end of the term, a tenant must provide the landlord with at least 60 days’ written notice, with the termination date being the last day of the term. If the tenant does not give notice, the tenancy automatically continues on a month-to-month basis under the existing terms.
• Month-to-month tenancy: To end a month-to-month tenancy, a tenant must provide the landlord with at least 60 days’ written notice, with the termination date being the last day of a rental period.

By the Landlord:

Landlords can only end a tenancy for specific reasons outlined in the RTA and must follow a proper procedure, including providing the tenant with a written notice of termination using the prescribed LTB form. Valid reasons for eviction include:

• Non-payment of rent: As mentioned earlier, landlords can issue an N4 notice and apply to the LTB for eviction if rent is not paid.
• Cause: This includes situations where the tenant has caused damage to the property, disturbed other tenants, engaged in illegal activities, or breached the tenancy agreement in other significant ways. The notice period for cause varies depending on the reason.
• Landlord’s own use: If the landlord, a purchaser, or a close family member intends to personally occupy the unit, the landlord can give notice (N12 form) with a specific notice period and may be required to provide the tenant with one month’s rent as compensation.
• Demolition, conversion, or repairs: If the landlord intends to demolish the unit, convert it to a non-residential use, or undertake extensive repairs or renovations that require the unit to be vacant, they can give notice (N13 form) with a specific notice period and may be required to compensate the tenant. The tenant may also have a right of first refusal to re-rent the unit after the renovations.

It is crucial to understand that a landlord cannot simply lock a tenant out or seize their belongings to enforce an eviction. They must obtain an eviction order from the LTB to legally evict a tenant.

The Landlord and Tenant Board (LTB)

The LTB is the quasi-judicial body that resolves disputes between landlords and tenants in Ontario. Either party can apply to the LTB to address various issues, such as:

• Eviction applications: Landlords can apply for an order to evict a tenant for valid reasons.
• Rent disputes: Tenants can dispute rent increases or apply for rent rebates for issues like a lack of repairs.
• Repair and maintenance issues: Tenants can apply for orders requiring landlords to make necessary repairs.
• Harassment claims: Tenants can file applications if they believe their landlord is harassing them.
• Tenant rights applications: Tenants can apply to assert their rights under the RTA.

The LTB holds hearings where both landlords and tenants can present their case. The Board has the authority to issue orders that are legally binding. It is advisable for both landlords and tenants to familiarize themselves with the LTB’s rules of procedure and to seek legal advice or assistance from tenant advocacy groups or legal clinics if needed.

Conclusion

The relationship between landlords and tenants in Ontario is governed by a comprehensive piece of legislation known as the Residential Tenancies Act, 2006 (RTA).