What Landlord Actions are Prohibited?

Over the years, rules and regulations related to landlord and tenant management in Ontario have become increasingly complex. Prior to 2007, the Tenant Protection Act of 1997 (TPA) was the main governing force determining what behaviours were acceptable under the landlord/tenant relationship. This act was implemented by the Progressive Conservative government of Mike Harris, and was officially proclaimed in June 1998. This signified a simpler time for Landlords; under the TPA, a landlord could request eviction for any reason, and it was automatically granted without a hearing unless the tenant filed a notice of dispute within 5 days of the request being filed. Now, as wonderful as that may sound to some of you, let’s be serious here for a second: Problem tenants aside, this is not fair and understandably became the focus of scrutiny. With the TPA under the microscope, the Ontario government went back to the drawing board to create a new act. On January 31st 2007, the Residential Tenancies Act (RTA) was officially implemented, replacing the TPA. Along with this new act came a new governing body, the Landlord and Tenant Board (LTB).

The main purpose of the act was, and is, to protect tenants from unlawful rent increases and unlawful evictions, as well as to better govern the landlord/tenant relationship. This, however, is a grossly oversimplified explanation. The act itself runs hundreds of pages in length. With that said, let’s focus on what actions a Landlord CANNOT do.

For starters, a landlord cannot interfere with the supply of vital services to the tenant. Ok, what does that mean? Think heat, water, security, carbon testers etc. One aspect that is exempt, is air conditioning. This is not considered a vital service.

Moreover, a landlord is prohibited from interfering with the tenant’s reasonable enjoyment of the unit or property. But who defines what is reasonable? Unfortunately, there are no clear-cut guidelines. For the most part, it’s safe to say that you can interfere if the tenants are a.) breaking the law, or b.) interfering with other tenant’s enjoyment of their rental units i.e. excessive noise.

A landlord is also prohibited from harassing, obstructing, coercing or threatening the tenant. This type of behaviour will be particularly scrutinized during the eviction process. Of course, these are behaviors that should be avoided in life from a general standpoint. On the topic of eviction, the landlord is also prohibited from issuing an eviction notice to the tenant and forcing them to move out for a reason that the landlord knows is untrue. In other words, no making things up.

A landlord cannot take a tenant’s belongings without following the rules set forth by the RTA, and they also cannot charge or attempt to charge a fee of any type over and above the rent amount. Thus, a landlord is only able to hold the equivalent of one month’s rent as a deposit, which is to be used towards the tenant’s final month in the unit.

Landlords cannot refuse to provide a receipt for rent paid, charge or attempt to charge a damage deposit, demand or attempt to collect post dated cheques or pre-authorized payments, or pressure the tenant to accept an unauthorized rent increase.

Regarding subletting, this may come as a surprise: A landlord cannot arbitrarily withhold consent to sublet the rental unit. If a tenant wishes to sublet their unit, they are within their rights. Not as surprisingly, a landlord cannot refuse to rent to a tenant based on their race, sexual orientation or because they have children. A landlord also cannot refuse to rent to a minor aged 16 or 17-year-old. Furthermore, a landlord cannot refuse rent to a potential tenant who has a service animal.

Of course, a landlord absolutely cannot evict a tenant without following the rules set forth by the RTA. Regarding rent raises, a landlord is entitled to rent increase every 12 months within the guideline, but they are not able to implement a rent increase unless 12 months have passed since the last increase. The landlord is also required to provide the tenant with proper notice and cannot increase the rent beyond the guideline. A landlord also has rules that they are required to follow prior to entering a tenant’s unit, including written notices with at least 24 hours in advance of entry.

A landlord may change the locks on a rental unit, but they may not do so without providing the tenant with proper notice and providing a new set of keys.

Long list so far, right? Well, there’s just a little more:

A landlord cannot restrict access to a rental unit or complex, make a tenant buy anything from the landlord or previous tenant as a condition occupancy, or charge a fee to a tenant for giving consent to sublet, except for out of pocket expenses. Finally, a landlord cannot charge late fees, apply to the LTB to recover unpaid utilities, or claim N.S.F. fees on the notice of early termination for non-payment of rent notice.

Well folks, thanks for staying with me! I know that was a little much, but many landlords find themselves in hot water simply for not understanding these basic rules. Take the time to review and understand these regulations; knowledge will give you the power needed to successfully manage your landlord business.