Landlords: Know Your Rights

When you sign a lease or have a tenant sign a lease that is a legally binding contract. As a landlord, you are responsible for managing your tenants and the property you own, but you also have rights in the agreement, and it is important that you know what they are.?

For landlords and tenants, your rights and responsibilities are defined by the Ontario Residential Tenancies Act (2006). This states first that landlords are required to use the Residential Tenancy Agreement (Standard Form of Lease) when entering a lease, and according to the Landlord and Tenant Board’s Guide to Residential Tenancies Act, tenants should demand one from their landlord if the landlord does not provide tenants with one.?

However, no matter how well intentioned and sincere both parties are, issues may arise. Hopefully they are small and manageable. Sometimes they are not. First, when a tenant causes damage to the property, whether it be in their own unit or in a common space (parking lot, elevator, etc.), the tenant will need to pay for the repairs. This does not include regular maintenance costs (paint and small nicks and dents), but strictly applies to damage either caused by a deliberate action or by negligence, either by the tenant themselves or by a guest of the tenant. The Landlord and Tenant Board (LTB) also states that if the tenant fails to cooperate on damages, the landlord should appeal to the LTB to document and secure a ruling on the issue. The LTB can require the tenant to pay the full cost of repair, or even order an eviction.?

Another right that the landlords hold is to be paid rent in full even when maintenance issues are present. This includes paying any utilities that have been identified at a tenant’s responsibility in the agreement. If a tenant is unhappy with the maintenance of their building or unit, they are not able to deny paying rent. If a tenant wants to withhold rent for any reason, the LTB must be made aware first and must approve the action related to the issue. If not, the LTB may require eviction.?

There is a bit of a grey area with regards to a landlord’s right to enter a property. A landlord cannot enter the unit without written notice in most cases. However, there are certain situations when a landlord can enter without written notice. For example, according to the LTB’s Guide to the Residential Tenancies Act, during an emergency (fire), if the tenant lets the landlord in, or if a tenant suffering from a disability has a written agreement for the landlord to enter at given intervals to conduct a wellness check. Other situations that do not require a written notice but are restricted to the hours of 8am to 8pm include: an agreement for cleaning or if the lease is ending and a landlord has permission to show a new tenant the unit. Landlords may enter the unit for other reasons, given they have provided 24-hours written notice. This includes repairs, inspections for repairs, showing an engineer the space for inspection, and any other reason as outlined in the agreement. Reasonable access cannot be refused and while goodwill can be used to stall for a better time, ultimately the tenant must allow the visit.

Landlords cannot increase rent within 12 months of a tenant living in the space. If a tenant decides to renew a lease, the landlord does reserve the right at this time to make any adjustments to rent price. However, landlords are limited in how much they can increase rent each year. With interest rates rising we are seeing more and more cases where a request is being made to increase rent mid-term. We are not seeing more and more cases where the request is successful.

To provide some certainty and to protect landlords, tenants cannot just up and leave whenever they want. If the tenant pays on a monthly basis, the tenant is required to give a minimum of 60 days’ notice. It is also recommended by the LTB that both the landlord and the tenant have signed a written agreement upon termination. The 60 days’ notice applies to both parties as you approach the maturity date of the lease. Both have to negotiate the next term or agree to move on (and out).?

What if the landlord serves termination and the tenant does not move out? A landlord can only end a lease and issue a termination for certain defined reasons: withholding rent money, illegal activity, overcrowding in the unit, damage, late rent, and more. As long as the landlord abides by those guidelines and gives the tenant proper notice, in proper form, they are on solid footing. If they tenants don’t move out, the landlord should then appeal to the LTB, where a hearing will be held and a decision will be made on whether the tenancy should be terminated.??

In short, the LTB is kind of like court. When an issue is made known, both sides, tenants and landlords, are to present their own sides and a decision will be made. When a landlord begins having issues with a tenant, whether it be damage, late rent, withholding rent, or other concerns, the landlord should appeal to the LTB and seek help going forward. Documenting everything is important. Most of the work can be done on-line and the LIB has tried to make it as easy as possible for landlords to act on their own behalf.

Also, remembering that it can be very emotional for both sides is important. As the property owner it is important for you rise up to the occasion and to be as professional as possible. Keep thorough documentation. Keep contact and communication factual, but amicable and non-threatening. Respect the recommended hours of contact to avoid any sense of harassment. Most landlord/ tenant relationship are great. Even the ones with challenges can be repaired with a little care, compassion and creativity.

The information in this article has been carefully researched, however, we always advise retaining independent legal advice before moving forward with significant transaction.

Wishing you the best relationship with your tenants for many, many years to come.??