Landlord Tenant Board Updates & Current Rules Regarding Renovictions
Brad McRae
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It is likely that even if one is not a landlord, they are aware of the extensive backlog the landlord and tenant board is currently facing in Ontario. The news is frequently reporting instances of landlords who have been pushed to the brink of bankruptcy by "professional scam renters" who refuse to pay rent, while the landlord is responsible for all associated expenses and any cleanup once the tenant is finally evicted.
The pandemic has caused the LTB to fall significantly behind on all cases, resulting in many people exploiting the system and refusing to pay rent, knowing they will likely be able to stay in the unit for a prolonged period before being legally evicted. This backlog pertains to a wide range of issues, including evictions, rent increases, and disputes.
The Ontario government has announced a $6.5 million investment to hire 40 additional adjudicators and five staff members to improve service standards within the landlord and tenant board. The hope is that this will clear the backlog and provide swift and just resolutions for those who have been wronged or are awaiting decisions.
There are two other items that are being tabled. The first is a small one that will include the ability for tenants to install certain portable air conditioning units that meet easy criteria at their own cost.
The second proposal has sparked significant controversy. It focuses on landlords who are seeking to "renovict" their tenants.
Currently, there are only a few ways that a landlord can legally evict a tenant from their unit.
When the landlord, spouse of the landlord, sibling or parent of either, or a caregiver of one of the named needs to live in the unit for at least one year.
- When this happens, an N12 form needs to be given to the tenant with at least 60 days' notice from the last day of their lease period, or rental period.
- The building cannot be more than 3 units in total.
- The landlord will also have to have an affidavit signed by the individual who will be moving into the unit for personal use stating as much.
- Only after both of these items have been filled out properly are they allowed to apply for eviction.
- Corporations cannot serve evictions based on this information.
When the purchaser of the building, spouse of the purchaser, sibling or parent of either, or a caregiver of one of the named needs to live in the unit for at least one year.
- Similar to the above guidelines.
When the landlord wishes to terminate the lease for Demolition/Renovation/Conversion.
- The N13 notice needs to be given to the tenant at least 120 days prior to the termination date.
- The landlord has to give the tenant the option to move back in after the renovations are complete by a specific form in writing.
- Speaking directly to the renovation, when the renovation is complete the landlord must complete an AGI application which is to allow the rent to increase above the legally set guideline by the Government that year.
Proposed changes:
When evicting a tenant to use the unit themselves (or for their family), a landlord (or their family members) would have to move into the unit by a specific deadline.
When evicting a tenant to renovate a unit, landlords would be required to:
- provide a report from a qualified person stating the unit must be vacant for renovations to take place
- update the tenant on the status of the renovation in writing (if they plan to return)
- give them a 60-day grace period to move back in, once the renovations are complete
If the landlord doesn’t allow the tenant to move back in at the same rent, the tenant would have two years after moving out, or six months after renovations are complete (whichever is longer), to apply to the Landlord and Tenant Board for a remedy.
The province is proposing to double the maximum fines for offences under the Residential Tenancies Act (such as bad faith renovictions) to $100,000 for individuals and $500,000 for corporations. Note: Ontario has the highest fines in Canada for residential tenancy offences.
In summary, the proposed changes would essentially make it easier for the tenant to be allowed access back into the unit, as well as make it harder for the landlord to legally evict for a renovation.
- Eviction for Personal Use, Demolition, Repairs and Conversion, Interpretation Guideline 12
- Applications for Rent Increases Above the Guideline, Interpretation Guideline 14
- Ontario to beef up tenant protections, prevent renovictions, housing minister says