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Starting April 30th 2018, not using the new "Standard Lease" could cost you $25,000.

With new rental regulations and standard lease terms, the question is, why would you own an investment property.

 

Starting April 30th 2018, the only legal and acceptable Tenancy Agreement in Ontario will be the new "Standard Lease", without which you can be fined up to $25,000.

 

Private landlords in Ontario can no longer use their own or commercially available lease documents. Landlords of most private residential rental units will be required to use the NEW standard lease template forms (accessible here) for residential leases in Ontario, beginning April 30th 2018.

 

The new standard lease comprises 14 pages, of which 6 pages contain the standard general terms of the lease. Some terms of the new standard lease are as follows:

 

  • If a landlord fails to provide the standard lease within 21 days after a renter has asked for it in writing, the renter may withhold one months rent.
  • If the landlord fails to provide the standard lease within 30 days after the renter has begun withholding rent, the renter does not have to repay the one months rent.
  • If the landlord does not provide the standard lease within 21 days after the renter has made a written request, the renter may give 60 days notice to terminate a yearly or fixed-term tenancy early.
  • If the landlord provides a renter with the standard lease after the renter has asked for it, but the renter does not agree to the proposed terms (for example, a new term is added), the renter may give the landlord 60 days notice to terminate a yearly or fixed-term tenancy early.

 

In certain situations, a tenant who has experienced sexual or domestic violence can give 28 days notice to end the tenancy at any time, even if the tenant has a fixed term agreement (e.g., one year agreement).

 

If the landlord gives a month-to-month tenant notice for 

  • their own use
  • the use of an immediate family member or
  • the use of a person who will provide care services to the landlord or a member of the landlord's immediate family, who is living in the same building or complex,

the landlord must either give the tenant the equivalent of one months rent or offer the tenant another unit that the tenant accepts.

 

Despite the above, if the landlord gives a tenant notice to end the tenancy, the tenant does not have to move out.

 

The landlord cannot prevent the tenant from having a roommate, as long as municipal by-laws on occupancy standards are respected.

 

The tenant may assign or sublet the rental unit to another person with the consent of the landlord. However the landlord cannot arbitrarily or unreasonably withhold consent to a sublet or potential assignee.

 

 

Subletting

Subletting a unit means that the tenant moves out of the unit for a period of time but plans to move back in before the end of the tenancy. The person who moves in is known as a subtenant. That person pays the rent to the original tenant who then pays it to the landlord.

 

Assignment

If a tenant assigns or sublets their unit without their landlord's consent, it is an unauthorized assignment or sublet. A landlord can file to evict both the tenant and the unauthorized occupant. However, if the landlord does not file the application within 60 days of discovering the unauthorized occupant, the unauthorized occupant becomes a tenant.

 

When the landlord can end the tenancy

The landlord cannot evict the tenant unless the landlord follows the proper rules. In most cases, the landlord must give proper notice to end the tenancy using the right form. Forms are available on the Landlord and Tenant Board’s website.

 

The landlord can only give the tenant notice to end the tenancy in certain situations. These situations are set out in the Act. A few examples include:

  • tenant does not pay the full rent when it is due,
  • tenant causes damage to the rental unit or building, and
  • tenant substantially interferes with the reasonable enjoyment of other tenants or the landlord.

 

Additional Terms

  • The landlord must reduce the rent if the municipal property tax goes down by more than 2.49 per cent, or municipal property taxes or charges on the rental property go down.
  • Unless the rental is a condominium where the corporation does not allow pets, a tenancy agreement cannot prohibit animals in the rental unit or in or around the residential building or require the tenant to remove snow.
  • The landlord’s administration charge for an NSF cheque cannot be more than $20.00.
  • The tenant may install decorative items, such as pictures or window coverings.
  • If a tenancy does not include utilities, the Landlord is responsible to provide the tenant with the general usage information measured over the previous 12 months.

 

A Free 1 hour Seminar for Landlords Monday April 7th 7-8 pm will show landlords how to avoid the pitfalls of the new 14 page standard lease. 

  • What’s legal what’s not.
  • Complimentary workbooks will contain many details including information on:
  1. Why Landlords can no longer prohibit pets.
  2. How tenants are entitled to have a roommate without your approval or knowledge after signing the lease. 
  3. After signing a lease, Tenants now receive broad ranging powers over your property with entitlements to assign, or worse, sublet their interest in your property which you cannot unreasonably prevent.

 

This list does not in anyway reflect the complete list of terms and landlord responsibilities.

 

I can be reached at 705-796-6348 for more details and information. 


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