If you are considering becoming a landlord and renting your property, or are a tenant interested in understanding your rights as a tenant in Ontario, the province’s Residential Tenancies Act sets out the rights and responsibilities of landlords and tenants regarding all matters relating to residential property rentals.

Here is your guide into what the Residential Tenancies Act is, what it covers, as well as how it is interpreted by the Landlord and Tenant Board, or LTB.

What The Residential Tenancies Act Covers

This Act covers almost all rental units, including all apartments, homes, rooming houses, boarding houses, care homes, retirement homes, and any sites in a mobile home park or land lease community.

However, the Act does not apply to non-profit and public housing, nor university and college residences. It also does not apply if the tenant must share a kitchen or a bathroom with the landlord.

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How Tenancy Agreements In Ontario Work

For tenancy agreements entered on or after April 30, 2018, the landlord must use the Residential Tenancy Agreement form as the form of lease. If they do not provide this form, the tenant is allowed to demand the landlord to do so. Within 21 days after a tenant signs the agreement, the landlord must give the tenant a written copy.

As it relates to the Residential Tenancies Act, if any terms in the tenancy agreement signed are inconsistent with those outlined in the Act, the term will not be enforced by the Landlord and Tenant Board.

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Rent Deposits Earn Renters Interest Over Time

A landlord must pay the tenant interest on the rent deposit every year under the guidelines of the Act. The interest rate is to be the same as the rent increase guideline given that year by the province.

The rent increase guidelines are also protected under the Act. The rent increase guideline is provided every year and, for most tenants, their rent cannot go up by more than the rent increase guideline within any 12-month period.

Ending A Tenancy Must Be Allowed Under The Act

A landlord is only allowed to end a tenancy for reasons allowed by the Residential Tenancies Act.

From there, a landlord must give the tenant written notice to move out. If the tenant refuses, the landlord can ask the LTB to end the tenancy.

The allowable reasons for a tenancy to end include the following:

  • If the landlord wants to use the rental for their own use or for an immediate family member.
  • If the landlord has agreed to sell the property and the purchaser wants the property for their own use.
  • The landlord is planning major repairs and renovations requiring vacant possession.
  • The landlord has plans to demolish the property.

There are also circumstances wherein a tenant’s conduct can be reason to end a tenancy. These include if a tenant is not paying the rent in full, persistently paying the rent late, if there’s physical damage to the property caused by the tenant, illegal activity carried out at the property, disturbances to the enjoyment of other tenants or the landlord, if there is overcrowding or too many people living at the rental unit, or if there is a failure to report income in subsidized housing.

Whether you are a landlord or a tenant, the Residential Tenancies Act is an important piece of legislation that outlines the processes that need to be taken to enter into a tenancy agreement or initiate the end of one.

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