Residential Real EstateOntario"s Tenant Protection Act
More than a year has passed since one of Canada"s most significant changes in
housing legislation - significant because the legal amendments were so dramatic
and because they affected Canada"s most populated province.
Last summer, the Ontario Tenant Protection Act became law. At the time, experts
predicted that Ontario tenants, particularly those on fixed incomes or who had
limited housing budgets, would become financial prisoners to the new law. Today,
many in Ontario would agree with those predictions.
The Tenant Protection Act gave residential tenancy a significant overhaul - its
first in 25 years. The legal framework and government support system shifted
from regulating rents and favouring tenant security to legislating tenant
protection and allowing landlords more leeway.
Those struggling with the "rent or own" dilemma -- either as first-time buyers
or as empty-nesters -- must give serious consideration to the Tenant Protection
Act when making their decision. The steady wave of first-time buyers intent on
leaving the rental world behind is considered by many housing industry watchers
to be one of the side-effects of this Act.
The Ontario Tenant Protection Act, allows "vacancy decontrol." When a rental
unit becomes vacant, rent-control regulations do not apply. A landlord and a
prospective tenant can negotiate the rent and the services to be included,
without any government restrictions on the final agreed rent. Once a new tenancy
agreement exists, the regulations, including rent control, take effect.
This open-ended opportunity for landlords replaces strict limitations on
maximum-allowable rents regulated by the Ontario government. Landlords can now
charge whatever the market will bear for a vacant apartment
The Act leaves tenants with a choice. They can stay in their current apartment
where the rent will increase by an allowable few percent per year, or they can
move and pay the usually inflated going rate plus annual increases.
A spokesperson from the Ontario Ministry of Municipal Affairs and Housing
explained, "Tenants who stay will continue to be protected by rent control
guidelines for as long as they want to live in their apartment."
Tenants who are threatened, pressured or intimidated by a landlord who wants
them to move out or to pay a higher than legitimate rent can call the new
Ontario Rental Housing Tribunal or contact the Ontario Ministry of Municipal
Affairs and Housing Investigation Unit. Protection for unfair eviction continues
under the Tennant Protection Act, which allows eviction only for specific
violations such as nonpayment of rent or damaging the premises.
The Tribunal resolves landlord-tenant disputes about rent increases at about 20
offices across the province so that evictions and privacy issues do not have to
go through Ontario provincial courts.
The Ontario Ministry of Municipal Affairs and Housing Investigation Unit, which
is not part of the Tribunal, deals with cases of tenants being harassed into
moving or paying more than legally-allowable rent increases. If contacting the
landlord does not solve the problem, investigation staff may lay charges against
the offending landlord who would then have to stand trial in court.
The Ontario Rental Housing Tribunal offers 24-hour information access by calling
1-888-332-3234 or visiting www.orht.gov.on.ca. Copies of the Tenant Protection
Act are available from Publications Ontario at 1-800-668-9938 or visit the
Ontario Government Website at www.gov.on.ca.
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