Rent Control Bulletin: Ontario Provides More Detail on Changes to the RTA: Draft Legislation

Rent Control Bulletin – April 2017

The Province has introduced draft legislation to amend the RTA.  The legislation is in “draft” form and the date on which it will be proclaimed is unknown, but expect it will be proclaimed by the end of June, 2017.

The proposed rules regarding Notices of Rent Increase issued for “Post Nov. 91” rental units would validate such notices if they were given before April 20, 1017; however, if they are given after April 20, then the amount of increase will have to be adjusted to 1.5% and any excess rent collected would have to be returned to the tenant within 60 days.

There is a proposal that there be a standard form lease for use by the industry.  It will not have to be used for every form of residential tenancy, but most likely will be mandatory for ‘normal’ multi-res buildings and there are adverse consequences if the form is not adhered to.  The actual form of lease has yet to be “prescribed” although for consistency purposes, it should be prescribed by the time the legislation is proclaimed in force.

Above Guideline Increases will no longer be permitted if the grounds are due to increases in utility costs.

Landlords who require possession of their rental units for the purpose of self-occupancy or occupancy by a member of the family will have to affirm they will require occupancy of the unit for residential purposes for a year, and in addition, must pay a tenant one month’s rent compensation or provide another unit acceptable to the tenant.

There are other more nuanced amendments, but those listed above are some major changes that will affect the largest cross-section of you.

More bulletins will follow as details continue to emerge.

A copy of the draft legislation and a preface/explanatory note can be found at the following link:

NEW PROPOSED LEGISLATION – Rental Fairness Act, 2017

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