Ontario, Canada, offers a thriving real estate market that has enticed many individuals to invest in rental properties. Rental property owners in Ontario can invest in a diverse range of properties, from urban apartments to suburban homes.
However, amidst these opportunities lies a crucial responsibility for landlords—to understand and navigate the Ontario landlord-tenant law. Understanding these laws is essential so that landlords can stay compliant and prevent any legal issues.
In Ontario, the Residential Tenancies Act (RTA), outlines the rights and responsibilities of landlords and tenants. Keep reading to learn more about this act and how it affects your responsibility as a landlord in the Ottawa area.
Required Landlord Disclosures in Ontario
When it comes to lease agreements, certain disclosures must be made by the landlord to the tenant. The following are the commonly required disclosures:
1. Nonrefundable Fees
The RTA does not permit landlords to charge nonrefundable fees. All fees that are not explicitly allowed under the RTA are generally considered illegal. For example, landlords cannot charge fees for processing applications or for the maintenance of common spaces.
2. Security Deposits
In Ontario, landlords are not allowed to collect a security deposit for potential damages. They are allowed to collect a rent deposit, but it cannot be more than the equivalent of two months’ rent and must be applied to the first and last months’ rent.
3. Rights of Domestic Violence Victims
Ontario law provides specific rights to tenants who are victims of domestic violence. Landlords are not necessarily required to disclose these rights in the lease agreement.
However, tenants who are victims have the right to terminate their tenancy early without financial penalty, given that they follow the proper procedure. This includes providing the landlord with a court order or a statement from a professional indicating they or a child living with them are at risk.
4. Owner or Agent Identity
Landlords in Ontario are required to provide tenants with their legal name and address. They should also provide contact information for anyone else involved in the management of the property. This information should be included in the lease agreement to ensure tenants know how to contact their landlord for any repair or maintenance issues, or to serve any legal notices.
5. Move-In Checklist
While not mandated by the RTA, move-in checklists can be very helpful and are considered good practice. They are not legally required to be provided or completed in Ontario, but they can help document the state of the rental unit at the time of move-in, which can be useful for both parties if there is a dispute at the end of the tenancy. It also helps protect your interest as a landlord.
Ontario Landlord Rights and Responsibilities
The following are the basic landlord rights in Ontario:
- The right to collect rent on the due date specified in the lease agreement.
- The right to increase rent in accordance with the guidelines and timelines set by provincial regulations.
- The right to enter the rental unit with proper notice, generally 24 hours, for reasons such as maintenance, showing the unit to prospective tenants or buyers, and inspections.
- The right to evict tenants for lawful reasons, such as non-payment of rent, causing damage, disturbing other tenants, or for other serious breaches of the lease terms or the RTA.
- The right to choose tenants using lawful screening processes, such as credit checks and references, while adhering to the Fair Housing laws.
- The right to establish rules and regulations for the rental property that are reasonable and consistent with the lease agreement and the RTA.
Here are the landlord responsibilities in Ontario:
- Provide a habitable dwelling place for renters.
- Maintain the rental property in a good state of repair and fit for habitation, complying with health, safety, housing, and maintenance standards.
- Address and repair any issues that arise in the rental property in a timely manner.
- Provide adequate and appropriate heat as required by municipal by-laws.
- Not withhold vital services, care, maintenance, or utilities.
- Avoid charging illegal fees or deposits, except for a rent deposit equivalent to the last month’s rent.
Ontario Tenant Rights and Responsibilities
The following are the basic rights of Ontario renters. A tenant has the right to:
- Live in a habitable property that complies with health, safety, housing, and maintenance standards.
- Be protected from unlawful evictions and the right to remain in the rental unit until a proper eviction process is completed.
- The right to privacy and to have the landlord provide at least 24 hours written notice before entering the rental unit, except in case of emergency.
- Fair treatment regardless of race, sex, age, sexual orientation, religion, nationality, familial status, or disability.
- Receive a receipt for rent or any deposit paid and access to rent records.
- Request landlords to perform repairs and necessary maintenance.
- Receive vital services such as heat, water, and electricity.
- Terminate a tenancy agreement early without penalty if the tenant or a child living with them is experiencing domestic violence.
The following are the basic tenant responsibilities in Ontario. A tenant must:
- Pay rent on time as agreed in the lease.
- Keep the rental unit safe, clean, and sanitary.
- Repair or pay for any undue damage to the property caused by themselves or their guests.
- Not interfere with other tenants or the landlord’s reasonable enjoyment of the property.
- Follow the laws and regulations concerning the tenancy and use of the property.
- Adhere to the lawful rules and regulations set out by the landlord regarding the use of the rental property.
- Give proper notice to the landlord when planning to move out, according to the duration specified in the RTA.
Overview of the Landlord-Tenant Laws in Ontario
Tenant Privacy and Ontario Landlord’s Right to Enter the Dwelling
Tenants in Ontario are entitled to privacy within their rental units. Landlords must provide at least 24 hours written notice before entering, except in emergencies. The notice must state the reason for entry and the time of entry, which must be agreed between the landlord and the tenants.
Condition, Maintenance, and Repairs
Landlords are responsible for ensuring rental properties meet health, safety, housing, and maintenance standards. Repairs must be conducted in a timely manner to keep rental properties habitable. Tenants are responsible for ordinary cleanliness and repairing the damage they or their guests cause.
Ontario’s Housing Discrimination Laws
The Ontario Human Rights Code prohibits discrimination in housing on the basis of race, color, sex, age, sexual orientation, religion, disability, and other protected grounds. Landlords must ensure that rental practices are free from discrimination and harassment.
Security Deposits
Ontario landlords are not allowed to collect a security deposit for potential damages. They can collect a rent deposit, which is typically equivalent to the first and last month’s rent, but it must be used for that purpose only.
Required Landlord Disclosures
Landlords must provide tenants with a copy of the lease agreement, which should disclose their legal name and address for service of documents.
Conclusion
When in doubt, it’s best to consult with a real estate lawyer in Ontario. You may also seek guidance from a reliable property manager, such as Sincere Property Management. Give us a call and we’ll be happy to help you!
Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.