Rent Control Bulletin: Why Pre-paid Rent is Not (Always) a No-No!

A recent decision in the Divisional Court (Corvers v. Bumbia, 2014 ONSC 985) has affirmed the legality of a landlord accepting “pre-paid rent” as long as the landlord does not “require” it as a condition of tenancy. The case vindicates a position often taken by landlords at the Landlord and Tenant Board (LTB) without success, where Board Members have routinely treated most pre-paid rent arrangements as “illegal charges”. In some cases landlords have even been prosecuted and fined for accepting pre-paid rent.

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