Ontario’s New Standard Lease Agreement Starting April 30, 2018 Padmapper released a rent report earlier this year showing Barrie as the third most expensive city in Canada to rent a two bedroom ($1,650/month), and the fifth most expensive for a one bedroom ($1,250/month). That’s an increase of roughly 15% from rental prices in 2016. With the Barrie rental market heating up, landlords and tenants alike must be aware of the new standard form lease that now applies to almost all residential tenancies in Ontario. As of April 30, 2018, landlords must use the new standard form lease for most private residential rental units. This includes single and semi-detached houses, apartment buildings, condominiums, and secondary units such as basement apartments. This lease must be used by both individual landlords and property management companies. Kathleen Wynne, the then-Premier of Ontario, announced that tenants in Ontario have had to endure illegal and hard to understand provisions in their lease agreements for too long. The new lease is intended to head off those issues by clarifying “understanding between landlords and tenants about what the rules are, what the agreement is and what the responsibilities of each is”. “We’re working to prevent those problems, those kinds of misunderstandings before they begin” Wynne commented. If a landlord is not using the standard lease, tenants can ask for one. The request must be in writing and if the landlord does not provide the standard lease within 21 days of a written request, the tenant may give 60 days’ notice to terminate the lease early. Tenants can also withhold a maximum of one month’s rent upon making a request for a standard lease, but otherwise must continue paying rent for the rest of the term of their lease, or until its early termination. The standard lease form contains: Mandatory fields that must be completed and cannot be altered or removed, including basic information about the tenant, landlord and tenancy terms. Optional additional terms where the landlord and tenant can agree on terms that are unique to the unit, provided that terms that are inconsistent with the Residential Tenancies Act will be void and unenforceable, such as prohibiting a tenant from having pets. General information for landlords and tenants on their rights and responsibilities. The purpose of this section is to avoid the problem of common illegal terms in tenancy agreements such as no pet-clauses and damage deposits other than rent deposits. If you are in need of a real estate lawyer, please visit our website and contact one of our real estate lawyers in Barrie, Toronto or Whitby today. In addition to real estate, our firm offers assistance in the areas of corporate law, wills, estates and litigation matters. Contact our Barrie office directly at 705-812-2100, or Cayley Rodd at cayley.rodd@devrylaw.ca. This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs. By Fauzan SiddiquiBlog, Real EstateSeptember 7, 2018June 16, 2020
Amendments to the Residential Tenancies Act On Friday, September 1, 2017, changes to the Residential Tenancies Act, 2006 (“RTA”) affected how landlords can terminate a tenancy. Bill 124, Rental Fairness Act, 2017 amended some of the RTA provisions on terminating a tenancy. The amendments provide renters with more protections. Background Under the RTA, s. 48(1), a landlord is able to terminate a tenancy for the landlord’s personal use. This means that a landlord can terminate a tenancy in good faith for personal uses such as: possession for a family member, for his or her spouse, for his or her children, for his or her parents or for his or her spouse’s children or parents or a caretaker of any listed family members. The family member has to live in the unit for at least a year. Here’s an example of how this rule plays out: David owns a rental unit in Yorkville and his oldest daughter, Carly, just got accepted to the University of Toronto. David wants Carly to move into the rental unit so that she can be close to school. Under the RTA, David would be able to have the tenant vacate the unit and have his daughter move in. There are specific timelines for how much notice he would be required to give under the RTA. David can legally remove the tenant as long as this is done in good faith and Carly lives in the unit for at least a year. The Changes When a tenant is evicted under this section of the RTA, the landlord will not get off scot free. Under the new section 48.1 of the RTA, landlords will now have to pay the tenant one month’s rent as compensation or offer the tenant a comparable rental unit. This means that when David is evicting his tenant, he either has to pay the tenant one month’s rent or offer the tenant another unit. The Effects Tenants now have more protections against eviction. Landlords will have to be careful to comply with the new eviction rules. If a landlord wants to move a relative into a rental unit, landlords will have to compensate the current tenant or offer another acceptable rental unit. The relative has to actually live in the unit for at least a year. If the landlord bends this rule in order to re-rent at a higher rate or convert the unit, there will be repercussions. This can be in the form of a fine up to $25,000. So if our friend, David, re-rents the unit to a new tenant at a higher rate, there could be monetary penalties. The Landlord and Tenant Board may award a large fine against a landlord if he or she tries to circumvent the rules. This new rule is a way to deter landlords from re-renting a unit at a higher rate or converting a unit. This comes as part of the government’s housing plan, which was announced this spring. This included a cap on rental increases in 2018 at 1.8 percent. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Planning and Development Law, Real EstateSeptember 19, 2017June 18, 2020
Toronto City Council approves New Apartment Bylaw to Further Protect Tenants The City of Toronto recently passed a new bylaw aimed at cracking down on “bad” landlords and providing tenants with more protections. The bylaw, which was passed by the city council with a 41-1 vote, imposes a series of new regulations on landlords that will come into effect on July 1, 2017. The new rules will address tenant service requests, pest management, building repairs, and cleaning. The bylaw also imposes fines for violating these new rules. Councillor Josh Matlow, who has been a major supporter of the bylaw, describes the new rules as “a landmark tenant protection bylaw that is not only being celebrated by tenants across the city … but is even being talked about (in other cities) as a signal of how to do things right.” The new bylaw will cover about 3,500 buildings in the city, which is roughly 350,000 apartments. It does not, however, apply to all landlords in the city—it is mainly aimed at landlords that oversee large residential properties. The bylaw is only applicable to owners and building operators of a residential property with three or more storeys, and ten or more dwelling units available for rent. The protections will apply to Toronto Community Housing buildings, but long-term residences, such as retirement homes, will not be covered by the bylaw. Under the new rules, building owners must register with the city within three to four months of the bylaw coming into effect, and must re-register every year. The annual registration fee will cost $10.60 per unit. However, the fees will only apply to private buildings—co-op and social housing providers, like Toronto Community Housing buildings, will be exempt from paying the fee (but not registration itself). The program will cost about $5 million a year to implement and will be funded through a combination of registration fees (53%), enforcement action (12%), and property taxes (35%). Prior to the launch of the program, city staff will conduct inspections of the buildings and order repairs. These inspections will serve as a baseline assessment for future inspections. Tenant Service Requests The new bylaws implement strict requirements on landlords in responding to service requests. Urgent service requests must be responded to within 24 hours and non-urgent requests within 7 days. A request is considered urgent if it is related to the following vital services: fuel, electricity, gas, heat, or hot or cold water. Landlords must also implement a system for handling and tracking service requests, and demonstrate compliance with their own system. The system must provide tenants with a copy of their service request submissions upon receipt by the landlord. Infestations and Pest Management Landlords are required to take certain steps to prevent and deal with infestations. As a preventative measure, landlords must inspect indoor and outdoor common areas for pests every 30 days. If notified about the presence of pests in any part of a building, a landlord must inspect the area where the pests were discovered within 72 hours. The landlord is then required to eliminate or exterminate the pests and take adequate measures to prevent the pests from spreading to other parts of the property. Pest treatment operations must be performed by licensed exterminators. The new rules also require landlords to notify tenants of the presence of pests and pest treatment information. The information must include the date of treatment, the name of the licensed pest management company, and the nature of the treatment. The information must be available for display on a central communication board in the building. While the specific location of the treatment won’t be made available, treatment records relating to common areas must be made available to tenants and prospective tenants upon their request. Landlords are also prohibited under the bylaws from renting units with pest problems. Repairs and Service Disruptions Tenants will have to be notified of planned or unplanned service disruptions—including those involving heat, water, electricity, elevators, and security. Notification of the disruption will have to be placed on a central notification board and include information regarding the nature of the disruption, duration of the disruption, and the units affected by the disruption. Landlords will also have to create a capital repair plan that lists building elements and when they are scheduled to be replaced or upgraded. The following capital elements are required to be included in the plan: roof, elevators, facade, windows, mechanical systems, underground garage, interior flooring, interior wall finish, balcony guards, and handrails. When performing major capital projects, landlords must provide tenants with information regarding the nature and duration of the project and the affected units. Cleaning Under the new bylaws, landlords will have to inspect common areas for cleanliness at least once a day. Landlords will also have to create a cleaning plan that contains a list of common areas and how often these areas will be cleaned. The list must include the following (if present): garbage storage area; walls; floors; laundry room and equipment. Enforcement and Violation The Municipal Licensing and Standards division will be responsible for implementing and enforcing the new bylaws. Landlords that do not register under the program will not be permitted to rent units to new tenants until registration is complete. If landlords fail to comply with the new rules, they may be responsible for paying the costs of inspection ($108 an hour) or audit ($1,800). Landlords and building operators found guilty of violating the new regulations could be fined up to $100,000. Charges would be laid through the provincial offences court. The Municipal Licensing and Standards Committee is also considering extended fines for repeat offenders and special fines for those in contempt of the bylaws for the sake of economic gain. Enforcement of the bylaw is expected to begin in July 2018. Concern Among City Councillors Despite a near-unanimous vote, a few city councillors took issue with the new bylaw as being overly oppressive to landlords. Apartment buildings already face municipal property tax rates that are almost three times as high as what home and condominium owners are charged. Councillor John Campbell is concerned that good landlords will lose money just because of the actions of a few “bad apples.” Councillor Giorgio Mammoliti doesn’t think the city should be involved in monitoring landlords. Mammoliti is also concerned that the new regulations will scare off developers hoping to build more rental units. This could be problematic since Toronto is already facing a shortage of available rental units. These councillors also expressed concern that fees associated with the new bylaw could be passed on to tenants. However, this may be limited to smaller fees (such as the registration fee) as landlords will not be able to pass along the cost of capital repairs ordered by the city. The Residential Tenancies Act has clear language that landlords must absorb those expenses associated with compliance orders. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateMarch 31, 2017June 19, 2020