Tenants in Ontario: Know Your Rights in 2023 | Real Estate Management
By RIFO
2023-01-26Last week, we covered the rights that landlords have when entering a contract with a tenant. As the owner of the property, they have responsibilities that they must uphold. This week we are discussing tenant rights in situations of rent increases in 2023, evictions, tenant privacy and more.
As is the case with the landlords, most tenant rights and responsibilities are outlined in the Ontario Residential Tenancies Act. There are additional protections in place to cover tenant rights due to the fundamental importance of housing.
First off, tenants cannot be discriminated against when applying to rent somewhere. This includes discrimination on the grounds of race/ethnicity, sexuality, gender, marital status, disability, age, and more. Settlement Ontario also states that landlords cannot deny you space simply because you have children. We do hear about cases in which the landlord attempts to start charging more for the unit in case tenants get a baby, however any rent fee changes must be done in accordance with the applicable laws. More on this below. Tenants are also entitled to a safe, functional, and maintained home. This includes but is not limited to: privacy, security, repairs, access to heat, electricity, gas and central air. Contrary to popular belief, as seen in TV shows and movies, a landlord cannot just turn off tenant’s heat, water, or electricity just because the tenant is behind on rent. The only time they are able to shut any of these necessities off is if they need to do it for safety reason, such as making a properly scheduled repair.
Tenant Privacy
In terms of privacy, landlords must have permission to enter the unit. If a landlord needs to enter the premises they must do so between the hours of 8 a.m. and 8 p.m. and are generally required to give 24 hours written notice. The notice must include the reason why the landlord wants to enter the rental unit and must state what time, between 8 a.m. and 8 p.m., they will enter the unit. The landlord can enter even if the tenant is not at home, as long as they have given the tenant the correct notice.
Common reasons why the landlord may wish to enter the unit include:
to make repairs or do work in the unit
to carry out an inspection in order to determine whether repairs are needed
to allow a potential mortgagee or insurer of the complex to view the unit
to allow a potential purchaser to view the rental unit
to allow an engineer, architect or other similar professional to make an inspection
or for any reasonable purpose allowed by the rental agreement
A landlord can enter a rental unit without written notice, between 8 a.m. and 8 p.m. only, if:
the lease requires the landlord to clean the premises they, or their employees, can enter for that purpose
the tenancy is being terminated, the landlord can enter to show the premises to prospective tenants
Entry without notice and at any time
At any time, a landlord can enter a tenant’s rental unit without giving written notice if:
there is an emergency, such as a fire or flood
the tenant allows the landlord to enter
a care home tenant has agreed in writing that the landlord can come in to check on their condition at regular intervals
Illegal Entry
If a landlord or their employee is illegally entering the tenant’s unit, the tenant may first attempt to resolve the problem with the landlord in person or in writing. If the landlord or their employee is not entering to do valid work, or if the tenant fears for their safety, they can call the police for protection. If the problem continues, a tenant may also complain to the Rental Housing Enforcement Unit of the Ontario Ministry of Municipal Affairs and Housing, and may also apply to the Landlord and Tenant Board for an order to stop the illegal entry. There may be times a landlord must enter the unit, such as in the case of emergency or for emergency repairs. In each individual case, clear communication and courteous notice to the tenant via a phone call or text message are very important.
Rent Increase
Your landlord can only increase your rent once every 12 months. They must also give you written notice at least 90 days before the rent goes up.
When you enter a rental agreement for the first time, the landlord decides the amount of rent you will pay and what services (hydro, parking, etc.) are included. Sometimes, you can negotiate what bills will be included in the rent but it is ultimately their decision. Although rental housing prices are based on current market prices in Ontario, there are no limitations to what a landlord may ask for rent.
The market price for a unit can be significantly higher than what the tenant before you paid. There is no maximum amount of rent that a landlord can charge a new tenant, with the exception of non-profit housing like: rent-geared-to-income (RGI) or subsidized, co-ops, and some student housing.
Ontario is a rent-controlled province for the most part, with a few exceptions. This means that a landlord can only increase your rent by a limited amount each year. Newer buildings are not rent controlled and landlords do not need to follow the same guidelines.
How much can my landlord increase the rent in 2023?
Once you've completed the first 12 months on the lease, your landlord can only increase your rent by a limited percentage which is based on the yearly guideline limits set out by the Ontario Ministry of Municipal Affairs and Housing and it is based on the Ontario Consumer Price Index.
In 2020, the limit was 2.2%.
In 2021, the limit was 0% due to the pandemic
In 2022, the limit was 1.2%
In 2023, the limit is 2.5% for existing tenants.
In some cases landlords can apply to The Landlord and Tenant Board (LTB) for approval to raise your rent above the guide limits. For example, the LTB might approve a higher increase if your landlord has made large repairs or installed a security system. Depending on the type of unit and other factors, this will be either an N1, N2, or N3 Notice of Rent Increase.
What is not rent controlled?
New residential apartment buildings, condos or houses that were occupied for the first time as of November 15, 2018 are not rent controlled. Landlords can increase the rent year-to-year to whatever they want and they are not required to follow any guideline. They must however, wait 12 months before they can request an increase. This also applies to residences that were newly built and occupied as of November 15, 2018, such as:
apartment additions to existing buildings or houses
basement apartments
mobile home parks and land lease community
a self-contained unit in a house that already had up to two residential units
Always read your lease carefully before you sign anything for the first time and ask questions about when the unit was built and first occupied to determine if the place will be rent controlled or not. Some landlords are more flexible and you can negotiate specific terms ahead of time to be listed into the rental contract. For example: "Increase after the first 12 months will be no more than 4%" so always ask if you plan to stay in a place for a long term.
Tenants and landlords can still agree on rent increases in exchange for an extra service or facility (for example, air conditioning or parking).
Should there be a problem, the LTB is always there to help. As a housing version of a courtroom, the LTB’s job is to mediate issues and come to a reasonable and lawful conclusion.
Evictions
Tenants are protected against unlawful evictions. There are certain reasons a landlord may evict a tenant. The list of the acceptable reasons as outlined by the Landlord and Tenant Board (LTB) and is extensive. Some reasons include illegal activity (including operating a business illegally from your home), damage to the property, failure to pay rent or persistent late rent payments, overcrowding, and more. Landlords must give written notice prior to eviction. Landlords also must use a form created by the LTB.
The LTB states that the tenant does not have to move out immediately after receiving the written eviction notice. Ontario landlords must apply for an eviction with the LTB, and if a tenant believes they are being unlawfully evicted, they can attend a hearing with the LTB and explain their side of the story. Under the Protecting Tenants and Strengthening Community Housing Act (2020) and the Residential Tenancies Act (2006), tenants are protected against unlawful evictions. The RTA states that the maximum penalty for unlawful eviction is $50,000 for an individual landlord and $250,000 for a business. The LTB further states that if the landlord decides to evict a tenant in order to use the space for personal reasons, such as house a relative or live there themselves, they owe a tenant one month’s worth of rent or an alternative accommodation (other unit, for example).
Finally, landlords must use a specific lease template, as provided by the LTB. This means the lease will clearly state the following: rent amount and due date, what the rent amount includes or doesn’t include, and rules in the unit (no smoking, an example provided by Ontario’s website). In other words, the lease must be in simple terms that the average person can easily understand with no legal jargon. This lease format also includes a section on landlord and tenant rights and responsibilities. The examples given by Ontario’s website include: who is responsible for repairs, when your landlord can/cannot enter your space, and that landlords cannot band guests/pets from your unit.
The overwhelming balance of landlords are great business owners as well as fine and fair people. They are making a value contribution to our society and helping many to live happy, comfortable and safe lives. Most of the tenants know this and are appreciative. Our laws can help both parties work together for mutual benefit. Yes, there are some bad apples in both groups. But overall, things are working out.
