Renting in Ontario can be highly profitable, but there are several rules that every potential landlord should know before placing a FOR RENT sign.
While the information below is valuable, we couldn’t possibly cover everything you need to know in one article. To get more info, including a personalized assessment of your investment situation, please contact us at this number: (416) 791-9494
The Residential Tenancies Act
“The purposes of this Act are to provide protection for residential tenants from unlawful rent increases and unlawful evictions, to establish a framework for the regulation of residential rents, to balance the rights and responsibilities of residential landlords and tenants and to provide for the adjudication of disputes and for other processes to informally resolve disputes.” (https://www.ontario.ca/laws/statute/06r17)
The Residential Tenancies Act was developed in 2006 and proclaimed as law in January 2007. It lays out multiple provisions meant to protect tenants. Below are some of the more important regulations listed in the Act.
Eviction rules
“The Landlord and Tenant Board (LTB) resolves:
disputes between residential landlords and tenants
eviction applications filed by non-profit housing co-operatives” (https://tribunalsontario.ca/ltb/)
Tenants can only be evicted if they fall into one of the following categories, and even then, only after being served a specific notice (provided by LTB) and with a minimum notice:
Once the paperwork has been filed, approved, and served correctly, only the Sherrif can evict a tenant.
*Bill 184
In June 2020, Bill 184 made several amendments to The Residential Tenancies Act. The most contested amendment included protection for tenants unable to pay rent: “When a tenant has fallen behind on their rent, they can develop an agreement with their landlord to repay the amount they owe over a period of time.” (equalityrights.org)
Leases
Only the standard lease forms that are provided by the province can be used when renting your property. That lease can be found here: https://www.ontario.ca/page/renting-ontario-your-rights#section-1
The purpose of providing a standard lease is to ensure that easy-to-understand language is used and, should any issue arise, it is easy to understand who has violated the agreement. If you do not use the standard lease as a landlord, your chances of being able to evict a tenant would be slim, considering you didn’t follow the law at the start of the lease.
Rent Increase Limits
Each year, Ontario regulates how much you can raise the rent.
“The rent increase guideline for 2023 is 2.5%. For most tenants, your rent can’t go up by more than the rent increase guideline for every year. This applies to most tenants living in rented houses, semis, basement apartments, condos, as well as care homes, mobile homes, and land lease communities.” (Ontario.ca)
Is It Too Difficult To Be A Landlord in Ontario?
When you consider all of the limitations, it can seem daunting to be a landlord. It’s not. The regulations are incredibly easy to understand and the process of renting is simplified as a result.
Renting in Ontario is extremely profitable, with Ontario ranking as the second highest rent in the nation (rentals.ca). With interest rates high, many homebuyers have put their goals on hold, and bidding wars are extremely common amongst renters (financialpost.com). Now is a great time to rent your property.
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