2017 brought about some changes to the Landlord and Tenant Act and here are some notes to take into consideration.
Changes in L&T Law
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If a landlord or a family member wants to occupy the landlord’s rental unit the landlord must now pay one months’ rent to the tenant or offer another unit to the tenant as compensation (s. 48.1 RTA). Sixty days’ written notice before the end of a rental term or period is still needed to be served on the tenant who is to vacate. If a “lease” is in effect the landlord or family member cannot take possession until the end of the “lease”. Why not rent out your rental unit on a month to month basis? Then only a sixty day, [2 clear months’] written notice is required.
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If a rental unit is sold and the purchaser needs to occupy the unit, the vendor should serve the 60 days’ written notice to the tenant for the purchaser, then the tenant does not require compensation, (s. 49 RTA); but the landlord/vendor could be exposed to liability as described below. – Real estate people – Heads up !
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A corporation is not a person nor does it have family members who can occupy, (s. 48 (5) RTA), makes sense even if a real person is the only officer of the corporation.
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If the Notice of Termination is given for the landlord’s own use or on behalf of a purchaser and if the person who claiming to need the rental unit fails to move in “within a reasonable time” the landlord could be liable for failing to give a “good faith” notice and may have to pay damages to the tenant and a sizable fine. 57 (3) RTA.
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Further, under s. 57 if, within one year after the tenant vacates the rental unit, the designated person fails to occupy the rental unit “within a reasonable period of time” and the landlord offers the unit for rent; or rents to another tenant; or advertises the unit for rent or the building for sale even; or demolishes it; or is seen to convert the unit to another use; then, the landlord is presumed to have acted in bad faith and can be penalized s. 57 (3).
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Section 12.1 of the RTA now makes it mandatory for landlords to use a “prescribed form” of leases for different types of tenancy but the prescribed forms have not yet been developed. We probably won’t have them until early in 2018. Heads up! Failure to use these “prescribed forms” when they are given to us on the L&T website could result in penalties and possible ordered reimbursement of rents to tenants. OREA, [Realtor’s] “lease” forms have always been questionable as to their legality, but thankfully now they will be irrefutably illegal.
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Rental units in a building first occupied on or after November 1, 1991 were previously exempt from most rent controls (s. 6 (2) (c) RTA) but that exemption is repealed.
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Landlords can no longer apply for an “Above Guideline Rent Increase” based on an “extraordinary” increase in the cost of utilities (heat, hydro, water) for the residential complex.
If you want to look up more information here's the link to the government website: https://www.ontario.ca/laws/statute/06r17
and also here's a link to an interpretation which may be easier to read through: guideline: http://www.sjto.gov.on.ca/documents/ltb/Interpretation%20Guidelines/21%20-%20Landlords%20Tenants%20Occupants%20and%20Residential%20Tenancies.html
If you have any questions about the rules feel free to reach out to me and I will do my best to help you or point you in the direction of someone who will be able to help.
** please be aware many people are trying to pull off rental scams. If it seems to good to be true, the landlord won't let you view the property or your spidey senses feel like something is off, please contact me and I will do my best to find out who actually owns the property and help you through the process **
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