Ontario Landlord And Tenant Law Series
Ontario Landlord and Tenant Law SeriesThe 2017 RTA Changes Arising out ofBill 124, The Rental Fairness Act, 2017Expert Landlord and Tenant Legal Info by Harry Fine, Licensed Paralegal
Exciting New Landlord Webinars for 2018Become an RTA and LTB ExpertJoin us for our 2018 Webinar SeriesFor info on our landlord webinars which start onJanuary 27th, 2018, or to sign up, visit us at:http://www.hfineparalegal.ca/Webinar landing.html2Expert Landlord and Tenant Legal Info by Harry Fine, Licensed Paralegal
Ontario Landlord and Tenant Law SeriesThe 2017 RTA Changes Arising out ofBill 124, The Rental Fairness Act, 2017For Additional Training Materials,Contact Us at:http://www.hfineparalegal.caTel. 647.970.6378Email Harry.fine@hfineparalgal.ca3Expert Landlord and Tenant Legal Info by Harry Fine, Licensed Paralegal
Ontario Landlord and Tenant Law Series LTB Landlord and Tenant Board RTA Residential Tenancies Act RFA Rental Fairness Act4Harry Fine Paralegal Services, All Rights Reserved.
What Does the RTA Do? Regulates rents – Creates vacancy decontrol Defines responsibilities of LL’s & TT’s Defines security of tenure for TT’s Creates a framework for evictions Creates the LTB, and provides it withpowers, including having its processgoverned by the SPPAHarry Fine Paralegal Services, All Rights Reserved.5
The RTA is Not Logical or Intuitive Don’t try to have it make sense. Don’t guess atanswers It’s a very political document This statute (like all statutes) replaces thecommon law that was not satisfactory Contract law still applies to tenancy agreements,but only if the RTA does not deal with the issueHarry Fine Paralegal Services, All Rights Reserved.6
Where did LTB / RTA Come From? Rent control has applied to most rental units since 1975 Matters were heard in the Courts prior to June 1998 The RRRA, also Part IV of LTA governed residentialtenancies prior to the TPA The Tenant Protection Act (TPA) proclaimed in Juneof 1998, completely re-wrote the law The RTA was proclaimed on January 31, 2007,and it introduced numerous changes to the TPA Over a dozen small amendments have taken placesince 2007, but none like 2017’s Rental Fairness ActHarry Fine Paralegal Services, All Rights Reserved.7
Where Does the Power Come From? The Act - Residential Tenancies Act The Regulations (516/06) The Statutory Powers ProcedureAct The Rules of Practice Case law from appellate courts The interpretation GuidelinesHarry Fine Paralegal Services, All Rights Reserved.8
Rental Fairness Act, 2017 The Rental Fairness Act was just a small partof the Liberal government’s inaptly named“Ontario Fair Housing Plan” The Bill amends the Residential TenanciesAct in response to complaints about thesection 6(2) rent control exemption for newerconstruction The Rental Fairness Act was introduced onApril 24th, 2017Harry Fine Paralegal Services, All Rights Reserved.9
Rental Fairness Act, 2017 The Rental Fairness Act received RoyalAssent on May 30th, 2017 The Rental Fairness Act is beingproclaimed in pieces, some provisions arenot yet proclaimed (not in force) Parts of the RFA regarding rent guidelineexemptions were effective retroactive toApril 20th, 2017Harry Fine Paralegal Services, All Rights Reserved.10
Rental Fairness Act, 2017 Many landlords believe that the RentalFairness Act is an unfair piece of publicpolicy created due to political pressure anda provincial election in 2018 Instead of creating more housing, the2017 changes may see developers runningfrom purpose-built rentals, and smalllandlords fleeing the business for Airbnbtype rentalsHarry Fine Paralegal Services, All Rights Reserved.11
Bill 124 Rental Fairness Act ChangesRENT CONTROL12Harry Fine Paralegal Services, All Rights Reserved.
Rent Control Changes Most condos in Toronto were built after1991 and were subject to the s.6(2)exemption. Landlords in condos along withother types of construction could raise therent by any amount, after giving the propernotice, using an N2 notice of rent increase Condo owners/investors were able to keepup with condo fee increases or specialassessments by having the flexibility toraise the rent each year to keep paceHarry Fine Paralegal Services, All Rights Reserved.13
Rent Control Changes The Section 6(2) guideline exemption forpost-November 1991 construction is nowhistory. This provision is retroactive to April20th, 2017. All rental buildings are now subject to theprovincial guideline, which will allow a 1.8%increase in 2018. This legislation whenenacted was retroactive to April 20th, 2017.For N2’s served before April 20, the increase,taken at least 90 days later is still legal.Harry Fine Paralegal Services, All Rights Reserved.14
Historical Rent Increase Guidelines2018 1.8%2015 1.6%2012 3.1%2009 1.8%2006 2.1%2003 2.9%2000 2.6%1997 2.8%1994 3.2%1991 5.4%2017 1.5%2014 0.8%2011 0.7%2008 1.4%2005 1.5%2002 3.9%1999 3.0%1996 2.8%1993 4.9%1990 4.6%Harry Fine Paralegal Services, All Rights Reserved.2016 2.0%2013 2.5%2010 2.1%2007 2.6%2004 2.9%2001 2.9%1998 3.0%1995 2.9%1992 6.0%15
Bill 124 Rental Fairness Act ChangesLANDLORD’S OWN USE16Harry Fine Paralegal Services, All Rights Reserved.
Eviction for Landlord’s Use There were a number of changes tosections 48, 49 etc. regarding eviction for alandlord (or family member’s) or purchaser(or family member’s) intended use In fairness, these changes were designedpartly in response to the large number ofphony landlord’s own use N12 notices oftermination and subsequent L2applications to the LTBHarry Fine Paralegal Services, All Rights Reserved.17
LTB NOTICES OF TERMINATIONN4 is used to Terminate a Tenancy Early based on an arrears of rentN5 is used to Terminate a Tenancy Early Based on Interference with Enjoyment orDamage to the Rental Unit or Complex.N6 is used to terminate a Tenancy Early based on an Illegal Act being CommittedN7 is used to terminate a Tenancy Early Based on Impairment of Safety, or forInterference with Enjoyment, Landlord Lives on Premises & 3 Units or LessN8 is used to terminate a Tenant at the End of Term, Persistent Late PaymentN12 is used to terminate at the end of the Term for Landlord/Buyer OwnUseN13 is used to terminate at the end of the Term for Demolition,Conversion18
The N12The N12 must beserved with at least60 days notice,effective the last dayof the rental period,but Where there is alease termremaining, notbefore the last day ofthe lease term.Get it wrong, andyou will have to startall over!19
LTB EVICTION APPLICATIONS AFTER NOTICE IS SERVEDL1 is used for N4, eviction based on rent arrears, and for recovery of thearrearsL2 is used for almost all other types of notices, N5, N6, N7, N8,N12 & N13L3 is used if tenant gives notice (N9) or if both the landlord & tenantsign an N11 agreement to end the tenancyL4 is a no-cost re-application, used if a tenant breaches the conditions ofa mediated Board consent order or mediated agreementL5 is used only for making an application to increase the rent greaterthan the annual guideline amount permitsL8 is used if the tenant has changed the locks without giving the landlorda key20
Eviction for Landlord’s UseA lot of the time, N12/L2’s are phony. It’sjust about getting rid of a tenant thelandlord doesn’t like, or to get more rent.To evict the tenant, many landlords servethe N12 but it’s often just 21
Eviction for Landlord’s Use An N12 for landlord’s (not purchaser’s) own usecan now only be used if the rental unit isowned at least in part by an individual, and thelandlord is also an individual. So NOCORPORATE LANDLORDS in landlord’s own useapplications. This is ironic since the OCA decision in Slapsysv. Abrams, [2010] decided that it was certainlypermissible for single shareholder corporationswhere the human shareholder is acting as thelandlordHarry Fine Paralegal Services, All Rights Reserved.22
Eviction for Landlord’s Use With the new changes, compensationequivalent to one month’s rent must be paidprior to termination date in the N12 notice forall N12 notices served after September 1st,2017 Also, as it reads, the LTB will not evict unlessthe one month’s compensation has been paid,although I don’t understand what will happen ifthe hearing takes place before the terminationdate in the N12 notice:Harry Fine Paralegal Services, All Rights Reserved.23
Eviction for Landlord’s UseNo eviction before compensation,residential occupation, demolition, etc.83(4) The Board shall not issue an evictionorder in a proceeding regarding terminationof a tenancy for the purposes of residentialoccupation, demolition, conversion to nonresidential rental use, renovations orrepairs until the landlord has complied withsection 48.1, 52, 54 or 55, as the case maybe.Harry Fine Paralegal Services, All Rights Reserved.24
Eviction for Landlord’s Use If the landlord compensated the tenant undera section 48.1 notice, and after a hearing, theBoard refuses to grant an application undersection 69 for an order terminating thetenancy and evicting the tenant based on thenotice, the Board may order that the tenantpay back the compensation to the landlord. Nobody knows why they didn’t use the word“shall” and make the return mandatory. Alandlord could be in a situation where theMember denies eviction, but the tenant stillgets to keep the money.Harry Fine Paralegal Services, All Rights Reserved.25
Eviction for Landlord’s Use Nobody knows why they didn’t use the word“rent” instead of “compensation” whenreferring to money that the Board “may” orderreturned. However as it’s not rent, thelandlord cannot recover it by serving an N4 forthe amount and bringing an L1 rentapplication to the Board. In fact assuming itis ordered by a Member and not returned,there is no remedy other than perhaps takingit to Small Claims. At Small Claims, theDeputy Judge will certainly say it’s not withintheir jurisdiction.Harry Fine Paralegal Services, All Rights Reserved.26
Eviction for Landlord’s Use A full 12 months of occupation will now berequired to evict for own use. This 12-monthintention must be explicitly stated in theaffidavit that the person requiring the unitsubmits to the LTB if there is a hearing, if theN12 notice was served on or after September1st, 2017 Prior to these 2017 changes, the Act wassilent on the amount of time required for alandlord or family member to occupyHarry Fine Paralegal Services, All Rights Reserved.27
The T5 Bad Faith Notice App. A tenant can file an application to the LTB ifthey were served with an N12, moved outpursuant to the N12 or the landlord’s L2application, and then the landlord (or familymember) did not move into the rental unit These T5 applications were always difficult fora tenant to win, because the tenant had theburden or proving bad-faith on behalf of thelandlord.Harry Fine Paralegal Services, All Rights Reserved.28
The T5 Bad Faith Notice App.Harry Fine Paralegal Services, All Rights Reserved.29
The T5 Bad Faith Notice App. That has all changed, with the RFA A tenant making a T5 application within a yearof moving out, can get considerablecompensation from an LTB order, includingthe difference in rent for a year, moving andstorage costs, and an abatement of rent. Landlords may also have to pay a fine to theLTB of up to 25,000 if notice was in bad faith But now, it is the landlord who has the burdento show good-faith, even though the tenant isthe applicantHarry Fine Paralegal Services, All Rights Reserved.30
The T5 Bad Faith Notice App.For a T5 tenant application based on a notice to terminate thatwas served on or after September 1st, 2017, the landlord isdeemed to have given the notice in bad faith if, between datenotice is served and one year from move-out, the landlord:(a) advertises the rental unit for rent;(b) enters into a tenancy agreement in respect of the rental unit withsomeone other than the former tenant;(c) advertises the rental unit, or the building containing unit for sale;(d) demolishes the rental unit or the building containing the unit; or(e) takes any step to convert the rental unit, or the buildingcontaining the rental unit, to use for a purpose other thanresidential premises.Harry Fine Paralegal Services, All Rights Reserved.31
The T1 Application Has Changed What happens if the landlord does not pay the one monthcompensation as required for a tenant to move out under as.48 notice? The T1 application wording, for monies unlawfully collectedor retained, has been amended so that the tenant can file aT1, a section 135 application, if LL doesn’t paycompensation by the termination date in the N12 notice(only if the notice was served after September 1st, 2017)Harry Fine Paralegal Services, All Rights Reserved.32
The T1 Application Has Changed Another change was made to close the loophole where noremedy was specified if a landlord refuses to afford thetenant a right of first refusal to return to the unit after the120 day N13 notice of termination for extensive renovationhas been served The Act now specifies remedies by way of a T1 application ifthe landlord fails to afford them the right of first refusal.These applications are very rare. And the ResidentialTenancies Act is badly written with respect to the details.Harry Fine Paralegal Services, All Rights Reserved.33
Bill 124 Rental Fairness Act ChangesThend2N5 Confusion34Harry Fine Paralegal Services, All Rights Reserved.
N5 Provisions are VERY Confusing From time to time, the LTB would dismiss an L2 applicationbased on a second N5 for a tenant’s conduct, because thetenant had not corrected their behaviour complained of inthe 1st N5 notice. In other words, the landlord should havefiled the L2 after the first N5, but didn’t This was a ridiculous outcome. The tenant was saved fromeviction on the L2 because they did NOT correct theirbehaviour the first time around Under the 2017 changes, the first N5 no longer needs tohave been voided by correcting behaviour in order to serve asecond N5. It’s sufficient that the landlord simply didn’t filethe L2 after the 7 days had passed since serving the first N5Harry Fine Paralegal Services, All Rights Reserved.35
Bill 124 Rental Fairness Act ChangesL4 Re-Applications CanNow Order Damage 36Harry Fine Paralegal Services, All Rights Reserved.
L4 Orders Can Order Damage Prior to the recent changes, if you had filed an L2 based onphysical damage to the unit, and then made a mediatedsettlement or consent order for payment of damages andthe tenant did not pay, the L4 eviction re-application couldevict, but not give you an order for money for the damage An L4 application can now have the Board order damage aswell as rent, if the original application was for damages andthe mediated agreement required the payment for thedamage. The L4 could always order eviction and new rent ifthere was a breach, but now it can order the unpaid moneyfor damage as well.Harry Fine Paralegal Services, All Rights Reserved.37
Bill 124 Rental Fairness Act ChangesLease Term: What is it goodfor? Absolutely Nothing!38Harry Fine Paralegal Services, All Rights Reserved.
Lease Term, and What it Means Prior to the Rental Fairness Act, there was confusionabout lease term, short notice, legal damages arisingout of short notice or failure to satisfy lease term etc.Landlords would often make damage claims at SmallClaims Court based on breach of contract for costs oflost rent and turning over the unit. Section 37 continues to say that If a notice oftermination is given in accordance with this Act and thetenant vacates the rental unit in accordance with thenotice, the tenancy is terminated on the terminationdate set out in the notice. So the tenancy is over.Harry Fine Paralegal Services, All Rights Reserved.39
Lease Term, and What it Means So what happens if no notice is given? Section 88 saysthat rent continues to be owing, but mitigation isrequired and no double-collecting. Based on s.88, landlords have until now been able tocontinue to make claims for future rent despite the factthat the tenancy “may” have been ended via s.37 if thelandlord served the tenant with a notice of termination.Harry Fine Paralegal Services, All Rights Reserved.40
Lease Term, and What it Means But now, the new section 134(1.1) ties it all together to giveclarity about what happens if a notice of termination has beengiven, and the tenant moves out early.134(1.1) No landlord shall, directly or indirectly, withrespect to any rental unit, collect or require or attempt tocollect or require from a former tenant of the rental unitany amount of money purporting to be rent in respect of,(a) any period after the tenancy has terminated and thetenant has vacated the rental unit; or(b) any period after the tenant’s interest in the tenancy hasterminated and the tenant has vacated the rental unit.Harry Fine Paralegal Services, All Rights Reserved.41
Lease Term, and What it Means So suing for short notice or unsatisfied lease termjust got a whole lot harder. If a notice has beenserved, and the tenant moved out pursuant to thenotice, you are finished. So what does s.88 mean when it says that “rentcontinues to be owed until the proper date”,subject to efforts at mitigation? Would it still applyfor tenants who gave no notice, whohave not been served with a notice,but who just picked up and left?Harry Fine Paralegal Services, All Rights Reserved.42
Lease Term, and What it Means It’s likely that Small Claims Court or the LTB (if filedwhile the tenant is still in possession) would still havethe right to order unpaid rent based on unsatisfiedlease term or short notice, provided that the landlordhas not served an N4, N5 etc. The smart tenant will goad the landlord into serving anotice, either by stopping payment of rent a monthbefore intending to move out, or by having a wild party.Harry Fine Paralegal Services, All Rights Reserved.43
Bill 124 Rental Fairness Act ChangesAbove Guideline ApplicationsGetting Tougher to Succeed!44Harry Fine Paralegal Services, All Rights Reserved.
Changes to Above Guideline Rules Landlords will no longer be allowed to make an aboveguideline application based on utilities. The Premier sayslandlords should be careful about energy efficiency ofappliances. Also, the Ministry will, by Regulation, prescribecircumstances where an above guideline application basedon capital expenditures is not allowable. An AGI order amount would exclude, for an application filedon or after April 24, 2017, any amount paid by the landlordfor carbon costs in respect of operating costs for heatprovided by gas.Harry Fine Paralegal Services, All Rights Reserved.45
Changes to Above Guideline Rules Landlords must now submit any item in an outstanding workorder relating to one or more elevators in the building,unaddressed orders made by the Technical Standards andSafety Act, 2000 relating to elevators, and any specifiedrepairs or replacements ordered by the LTB with respect toelevators in the residential complex. The effect of this amendment is to prevent landlords fromincreasing rent in an amount above the guideline wherethey have failed to keep their elevators in a state of goodrepair. Again, this has not yet been proclaimed.Harry Fine Paralegal Services, All Rights Reserved.46
Above Guideline Increase, an L5 can be Filed if There Are 2 Circumstances Where an L5 Can Be Filed1. There was an extraordinary increase in realty taxes, yearover year, comparing the base year from the year before,to the current tax year. There is no limit on thepercentage increase that this application may result in.(An increase above is deemed to be extraordinary if it is at least 50% more than theguideline increase percentage in that year)2. There were eligible capital expenditures incurredrespecting the residential complex or one or more of therental units in it.(The maximum annual increase that may be allowed in an
The RRRA, also Part IV of LTA governed residential tenancies prior to the TPA The Tenant Protection Act (TPA) proclaimed in June of 1998, completely re-wrote the law The RTA was proclaimed on January 31, 2007, and it introduced numerous changes to the TPA Over a dozen small amendments have taken place
Landlord increases rent, decreases services, or threatens to bring/actually brings eviction action for these specific reasons: 1. Tenant complained to government agency about code violation 2. Tenant complained to landlord that landlord violated their legal duties 3. Tenant organized with other tenants to negotiate/deal
A.R.S. Title 33, Chapter 10 and Other Pertinent Statutes Arizona Residential Landlord and Tenant Act Title 33. Property, Chapter 10. Residential Landlord and Tenant Act Page 3 Article 1. General Provisions Page 4 Article 2. Landlord Obligations Page 13 Article 3. Tenant Obligations Page 17 Article 4. Remedies Page 18 Article 5.
residential landlord-tenant code with related statutes, including chapter 666, Hawaii Revised Statutes. Chapter 666, entitled "Landlord and Tenant", has its statutory roots in the Civil Code of 1859. Until the enactment of chapter 521 in 1972, all landlord-tenant matters were regulated by chapter 666. Since
THIS SINGLE TENANT LEASE AGREEMENT dated the day of (month) 201 , is made and executed by and between (LANDLORD), whose address is 1350 Orange Avenue, Suite 100, Winter Park, Florida 32789, hereinafter called Landlord, and (TENANT), whose address is, hereinafter called Tenant. (Whenever used herein the terms "Landlord" and "Tenant" include all .
the landlord or that was paid to the landlord under this section and the landlord later receives from the qualifi ed tenant or on the tenant’s behalf, within the period requested Oregon Passes 150 Million Landlord Compensation Fund renTal HouSIng Journal Portland rents have declined 0.9 percent over the past month, and have decreased
The Landlord and Tenant Act: what it means to you When a landlord and tenant get along well, things are better all around. Dealing with unhappy tenants is a lot of trouble for a landlord, and few tenants want the inconvenience and expense of moving simply because they cannot get along with their landlords.
required). If the landlord does intend to make a claim on the security deposit, the landlord has 30 days to give the tenant written notice of the landlord’s intent and reason for imposing the claim. The notice must be given by certified mail to the tenant’s last known address and must be
When creating a tenant, the root administrator can: Label the tenant user interface with a tenant logo Change the tenant user interface look and feel (colors and fonts) Enable all or a subset of parent tenant clouds for the tenant The root administrator controls the following global permissions for each tenant organization and tenant
