Residential Tenancies Act Part VII
Rules Relating to Rent
General Rules
Security deposits, limitation
105. (1) The only security deposit that a landlord may collect is a rent deposit
collected in accordance with section 106. 2006, c. 17, s. 105 (1).
Definition
(2) In this section and in section 106,
"security deposit" means money, property or a right paid or given by, or
on behalf of, a tenant of a rental unit to a landlord or to anyone on the landlord's behalf
to be held by or for the account of the landlord as security for the performance of an
obligation or the payment of a liability of the tenant or to be returned to the tenant upon
the happening of a condition. 2006, c. 17, s. 105 (2).
Rent deposit may be required
106. (1) A landlord may require a tenant to pay a rent deposit with respect to a
tenancy if the landlord does so on or before entering into the tenancy agreement. 2006, c. 17, s. 106 (1).
Amount of rent deposit
(2) The amount of a rent deposit shall not be more than the lesser of the amount of
rent for one rent period and the amount of rent for one month. 2006, c. 17, s. 106 (2).
Same
(3) If the lawful rent increases after a tenant has paid a rent deposit, the landlord
may require the tenant to pay an additional amount to increase the rent deposit up to the
amount permitted by subsection (2). 2006, c. 17, s. 106 (3).
Qualification
(4) A new landlord of a rental unit or a person who is deemed to be a landlord under
subsection 47 (1) of the Mortgages Act shall not require a tenant to pay a rent deposit
if the tenant has already paid a rent deposit to the prior landlord of the rental unit. 2006, c. 17, s. 106 (4).
Exception
(5) Despite subsection (4), if a person becomes a new landlord in a sale from a
person deemed to be a landlord under subsection 47 (1) of the Mortgages Act, the new
landlord may require the tenant to pay a rent deposit in an amount equal to the amount with
respect to the former rent deposit that the tenant received from the proceeds of sale. 2006, c. 17, s. 106 (5).
Interest
(6) A landlord of a rental unit shall pay interest to the tenant annually on the
amount of the rent deposit at a rate equal to the guideline determined under section 120
that is in effect at the time payment becomes due. 2006, c. 17, s. 106 (6).
Deduction applied to rent deposit
(7) The landlord may deduct from the amount payable under subsection (6) the amount,
if any, by which the maximum amount of the rent deposit permitted under subsection (2)
exceeds the amount of the rent deposit paid by the tenant and the deducted amount shall be
deemed to form part of the rent deposit paid by the tenant. 2006, c. 17, s. 106 (7).
Transition
(8) Despite
subsection (6), the first interest payment that becomes due under subsection (6)
after the day this subsection comes into force shall be adjusted so that,
(a) the interest payable in respect of the period ending before the day
this subsection comes into force is based on the annual rate of 6 per cent; and
(b) the interest payable in respect of the period commencing on or after the
day this subsection comes into force shall be based on the rate determined under
subsection (6).
2006, c. 17, s. 106 (8).
Deduction of interest from rent
(9) Where the landlord has failed to make the payment required by subsection (6)
when it comes due, the tenant may deduct the amount of the payment from a subsequent rent
payment. 2006, c. 17, s. 106 (9).
Rent deposit applied to last rent
(10) A landlord shall apply a rent deposit that a tenant has paid to the landlord
or to a former landlord in payment of the rent for the last rent period before the
tenancy terminates. 2006, c. 17, s. 106 (10).
Rent deposit, prospective tenant
107. (1) A landlord shall repay the amount received as a rent deposit in respect of
a rental unit if vacant possession of the rental unit is not given to the prospective tenant. 2006, c. 17, s. 107 (1).
Exception
(2) Despite subsection (1), if the prospective tenant, before he or she would
otherwise obtain vacant possession of the rental unit, agrees to rent a different rental
unit from the landlord,
(a) the landlord may apply the amount received as a rent deposit in respect
of the other rental unit; and
(b) the landlord shall repay only the excess, if any, by which the amount
received exceeds the amount of the rent deposit the landlord is entitled to receive
under section 106 in respect of the other rental unit.
2006, c. 17, s. 107 (2).
Post-dated cheques, etc.
108. Neither a landlord nor a tenancy agreement shall require a tenant to,
(a) provide post-dated cheques or other negotiable instruments for
payment of rent; or
(b) permit automatic debiting of the tenant's account at a financial
institution, automatic charging of a credit card or any other form of automatic
payment for the payment of rent.
2006, c. 17, s. 108.
Receipt for payment
109. (1) A landlord shall provide free of charge to a tenant or former tenant,
on request, a receipt for the payment of any rent, rent deposit, arrears of rent or any
other amount paid to the landlord. 2006, c. 17, s. 109 (1).
Former tenant
(2) Subsection (1) applies to a request by a former tenant only if the request is
made within 12 months after the tenancy terminated. 2006, c. 17, s. 109 (2).
110. No landlord shall increase the rent charged to a tenant for a rental unit,
except in accordance with this Part. 2006, c. 17, s. 110.
Landlord not to charge more than lawful rent
111. (1) No landlord shall charge rent for a rental unit in an amount that is
greater than the lawful rent permitted under this Part. 2006, c. 17, s. 111 (1).
Lawful rent where discounts offered
(2) The lawful rent is not affected by,
(a) a discount in rent at the beginning of, or during, a tenancy, that
consists of up to three months rent in any 12-month period, if the discount is
provided in the form of rent-free periods and meets the prescribed conditions;
(b) a discount in rent at the beginning of, or during, a tenancy, of up to
2 per cent of the rent that could otherwise be lawfully charged for a rental period,
if the discount is provided for paying rent on or before the date it is due and the
discount meets the prescribed conditions; or
(c) a prescribed discount.
2006, c. 17, s. 111 (2).
Same
(3) Subject to subsection (2), where a landlord offers a discount in rent at the
beginning of, or during, a tenancy, the lawful rent shall be calculated in accordance
with the prescribed rules. 2006, c. 17, s. 111 (3).
Lawful rent where higher rent for first rental period
(4) Where the rent a landlord charges for the first rental period of a tenancy is
greater than the rent the landlord charges for subsequent rental periods, the lawful rent
shall be calculated in accordance with the prescribed rules. 2006, c. 17, s. 111 (4).
Lawful rent when this section comes into force
112. Unless otherwise prescribed, the lawful rent charged to a tenant for a rental
unit for which there is a tenancy agreement in effect on the day this section comes into
force shall be the rent that was charged on the day before this section came into force or,
if that amount was not lawfully charged under the Tenant Protection Act, 1997, the
amount that it was lawful to charge on that day. 2006, c. 17, s. 112.
Lawful rent for new tenant
113. Subject to section 111, the lawful rent for the first rental period for a
new tenant under a new tenancy agreement is the rent first charged to the tenant. 2006, c. 17, s. 113.
Notice to new tenant, order under par. 6, 7 or 8 of s. 30 (1) in effect
114. (1) If an order made under paragraph 6, 7 or 8 of subsection 30 (1) is in
effect in respect of a rental unit when a new tenancy agreement relating to the rental
unit is entered into, the landlord shall, before entering into the new tenancy agreement,
give to the new tenant written notice about the lawful rent for the rental unit in accordance
with subsection (3). 2006, c. 17, s. 114 (1).
Same
(2) If an order made under paragraph 6, 7 or 8 of subsection 30 (1) takes effect
in respect of a rental unit after a new tenancy agreement relating to the rental unit is
entered into but before the tenancy agreement takes effect, the landlord shall, before the
tenancy agreement takes effect, give to the new tenant written notice about the lawful rent
for the rental unit in accordance with subsection (3). 2006, c. 17, s. 114 (2).
Contents of notice
(3) A notice given under subsection (1) or (2) shall be in the form approved by the
Board and shall set out,
(a) information about the order made under paragraph 6, 7 or 8
of subsection 30 (1);
(b) the amount of rent that the landlord may lawfully charge the new tenant
until the prohibition in the order made under paragraph 6, 7 or 8 of subsection 30 (1) ends;
(c) the amount of rent that the landlord may lawfully charge the new tenant
after the prohibition in the order made under paragraph 6, 7 or 8 of subsection 30 (1) ends;
(d) information about the last lawful rent charged to the former tenant; and
(e) such other information as is prescribed.
2006, c. 17, s. 114 (3).
Order takes effect after tenancy agreement
(4) If an order made under paragraph 6, 7 or 8 of subsection 30 (1) takes effect in
respect of a rental unit after a new tenancy agreement relating to the rental unit takes
effect, the landlord shall promptly give to the new tenant written notice about the lawful
rent for the rental unit in accordance with subsection (5), unless the order was made on
the application of the new tenant. 2006, c. 17, s. 114 (4).
Contents of notice
(5) A notice given under subsection (4) shall be in the form approved by the Board
and shall set out,
(a) information about the order made under paragraph 6, 7 or 8 of
subsection 30 (1); and
(b) such other information as is prescribed.
2006, c. 17, s. 114 (5).
Application by new tenant
115. (1) A new tenant who was entitled to notice under section 114 may apply to
the Board for an order,
(a) determining the amount of rent that the new tenant may lawfully be
charged until the prohibition in the order made under
paragraph 6, 7 or 8 of subsection 30 (1) ends;
(b) determining the amount of rent that the new tenant may lawfully be
charged after the prohibition in the order made under
paragraph 6, 7 or 8 of subsection 30 (1) ends; and
(c) requiring the landlord to rebate to the new tenant any rent paid by
the new tenant in excess of the rent that the tenant may lawfully be charged.
2006, c. 17, s. 115 (1).
Time for application
(2) No order shall be made under subsection (1) unless the application is made
not later than one year after the new tenancy agreement takes effect. 2006, c. 17, s. 115 (2).
Failure to comply with s. 114
(3) If, in an application under subsection (1), the Board finds that the landlord
has not complied with section 114, the Board may order the landlord to pay to the Board an
administrative fine not exceeding the greater of $10,000 and the monetary jurisdiction of
the Small Claims Court. 2006, c. 17, s. 115 (3).
Information to be filed
(4) If an application is made under subsection (1), the landlord shall file with the
Board information as prescribed within the time prescribed. 2006, c. 17, s. 115 (4).
Application of s. 135
(5) Section 135 does not apply to a new tenant with respect to rent paid by the
new tenant in excess of the rent that the tenant could lawfully be charged if an application
could have been made under subsection (1) for an order requiring the rebate of the excess. 2006, c. 17, s. 115 (5).
Notice of Rent Increase
Notice of rent increase required
116. (1) A landlord shall not increase the rent charged to a tenant for a
rental unit without first giving the tenant at least 90 days written notice of the
landlord's intention to do so. 2006, c. 17, s. 116 (1).
Same
(2) Subsection (1) applies even if the rent charged is increased in accordance with
an order under section 126. 2006, c. 17, s. 116 (2).
Contents of notice
(3) The notice shall be in a form approved by the Board and shall set out the
landlord’s intention to increase the rent and the amount of the new rent. 2006, c. 17, s. 116 (3).
Increase void without notice
(4) An increase in rent is void if the landlord has not given the notice required
by this section, and the landlord must give a new notice before the landlord can take the
increase. 2006, c. 17, s. 116 (4).
Compliance by landlord, no notice required
117. (1) Despite section 116 but subject to subsections (3) and (4), if an order
was issued under paragraph 6 of subsection 30 (1) and a new tenancy agreement was entered
into while the order remained in effect, no notice of rent increase is required for the
landlord to charge an amount that the landlord would have been entitled to charge in the
absence of the order. 2006, c. 17, s. 117 (1).
Same
(2) Despite section 116 but subject to subsections (3) and (4), if an order was
issued under paragraph 8 of subsection 30 (1), no notice of rent increase is required for
the landlord to take a rent increase that the landlord would have been entitled to take in
the absence of the order. 2006, c. 17, s. 117 (2).
Limitation
(3) Subsections (1) and (2) apply only where the landlord,
(a) has completed the items in work orders for which the compliance period
has expired and which were found by the Board to be related to a serious breach of a
health, safety, housing or maintenance standard; and
(b) has completed the specified repairs or replacements or other work ordered
under paragraph 4 of subsection 30 (1) found by the Board to be related to a serious
breach of the landlord's obligations under subsection 20 (1) or section 161.
2006, c. 17, s. 117 (3).
Effective date
(4) The authority under subsection (1) or (2) to take an increase or charge an
amount without a notice of rent increase is effective on the first day of the rental period
following the date that the landlord completed,
(a) the items in work orders for which the compliance period has expired and
which were found by the Board to be related to a serious breach of a health, safety,
housing or maintenance standard; and
(b) the specified repairs or replacements or other work ordered under
paragraph 4 of subsection 30 (1) found by the Board to be related to a serious breach
of the landlord's obligations under subsection 20 (1) or section 161.
2006, c. 17, s. 117 (4).
Date of annual increase
(5) In determining the effective date of the next lawful rent increase under section
119,
(a) an amount charged under subsection (1) shall be deemed to have been
charged at the time the landlord would have been entitled to charge it if the order
under paragraph 6 of subsection 30 (1) had not been issued; and
(b) an increase taken under subsection (2) shall be deemed to have been taken
at the time the landlord would have been entitled to take it if the order under
paragraph 8 of subsection 30 (1) had not been issued.
2006, c. 17, s. 117 (5).
Deemed acceptance where no notice of termination
118. A tenant who does not give a landlord notice of termination of a tenancy under
section 47 after receiving notice of an intended rent increase under section 116 shall be
deemed to have accepted whatever rent increase would be allowed under this Act after the
landlord and the tenant have exercised their rights under this Act. 2006, c. 17, s. 118.
12-Month Rule
12-month rule
119. (1) A landlord who is lawfully entitled to increase the rent charged to a
tenant for a rental unit may do so only if at least 12 months have elapsed,
(a) since the day of the last rent increase for that tenant in that rental
unit, if there has been a previous increase; or
(b) since the day the rental unit was first rented to that tenant, if
clause (a) does not apply.
2006, c. 17, s. 119 (1).
Exception
(2) An increase in rent under section 123 shall be deemed not to be an increase in
rent for the purposes of this section. 2006, c. 17, s. 119 (2).
Guideline
Guideline increase
120. (1) No landlord may increase the rent charged to a tenant, or to an assignee
under section 95, during the term of their tenancy by more than the guideline, except in
accordance with section 126 or 127 or an agreement under section 121 or 123. 2006, c. 17, s. 120 (1).
Guideline
(2) The guideline for a calendar year is the percentage change from year to year
in the Consumer Price Index for Ontario for prices of goods and services as reported monthly
by Statistics Canada, averaged over the 12-month period that ends at the end of May of the
previous calendar year, rounded to the first decimal point. 2006, c. 17, s. 120 (2).
Publication of guideline
(3) The Minister shall determine the guideline for each year in accordance with
subsection (2) and shall have the guideline published in The Ontario Gazette not
later than August 31 of the preceding year. 2006, c. 17, s. 120 (3).
Transition
(4) The guideline for the calendar year in which this section comes into force
shall be deemed to be the guideline established for that year under the Tenant Protection Act, 1997.
2006, c. 17, s.120 (4).
Same
(5) If this section comes into force on or after September 1 in a calendar year,
the guideline for the following calendar year shall be deemed to be the guideline
established for the following year under the Tenant Protection Act, 1997. 2006, c. 17, s. 120 (5).
Agreements to Increase or Decrease Rent
Agreement
121. (1) A landlord and a tenant may agree to increase the rent charged to the
tenant for a rental unit above the guideline if,
(a) the landlord has carried out or undertakes to carry out a specified
capital expenditure in exchange for the rent increase; or
(b) the landlord has provided or undertakes to provide a new or additional
service in exchange for the rent increase.
2006, c. 17, s. 121 (1).
Form
(2) An agreement under subsection (1) shall be in the form approved by the Board and
shall set out the new rent, the tenant's right under subsection (4) to cancel the agreement
and the date the agreement is to take effect. 2006, c. 17, s. 121 (2).
Maximum increase
(3) A landlord shall not increase rent charged under this section by more than the
guideline plus 3 per cent of the previous lawful rent charged. 2006, c. 17, s. 121 (3).
Right to cancel
(4) A tenant who enters into an agreement under this section may cancel the agreement
by giving written notice to the landlord within five days after signing it. 2006, c. 17, s. 121 (4).
Agreement in force
(5) An agreement under this section may come into force no earlier than six days
after it has been signed. 2006, c. 17, s. 121 (5).
Notice of rent increase not required
(6) Section 116 does not apply with respect to a rent increase under this section. 2006, c. 17, s. 121 (6).
When prior notice void
(7) Despite any deemed acceptance of a rent increase under section 118, if a
landlord and tenant enter into an agreement under this section, a notice of rent increase
given by the landlord to the tenant before the agreement was entered into becomes void when
the agreement takes effect, if the notice of rent increase is to take effect on or after
the day the agreed to increase is to take effect. 2006, c. 17, s. 121 (7).
Tenant application
122. (1) A tenant or former tenant may apply to the Board for relief if the
landlord and the tenant or former tenant agreed to an increase in rent under section 121 and,
(a) the landlord has failed in whole or in part to carry out an undertaking
under the agreement;
(b) the agreement was based on work that the landlord claimed to have done
but did not do; or
(c) the agreement was based on services that the landlord claimed to have
provided but did not do so.
2006, c. 17, s. 122 (1).
Time limitation
(2) No application may be made under this section more than two years after the
rent increase becomes effective. 2006, c. 17, s. 122 (2).
Order
(3) In an application under this section, the Board may find that some or all of
the rent increase above the guideline is invalid from the day on which it took effect and
may order the rebate of any money consequently owing to the tenant or former tenant. 2006, c. 17, s. 122 (3).
Additional services, etc.
123. (1) A landlord may increase the rent charged to a tenant for a rental unit as
prescribed at any time if the landlord and the tenant agree that the landlord will add any of
the following with respect to the tenant's occupancy of the rental unit:
1. A parking space.
2. A prescribed service, facility, privilege, accommodation or thing.
2006, c. 17, s. 123 (1).
Application
(2) Subsection (1) applies despite sections 116 and 119 and despite any order
under paragraph 6 of subsection 30 (1). 2006, c. 17, s. 123 (2).
Coerced agreement void
124. An agreement under section 121 or 123 is void if it has been entered into as
a result of coercion or as a result of a false, incomplete or misleading representation by
the landlord or an agent of the landlord. 2006, c. 17, s. 124.
Decrease in services, etc.
125. A landlord shall decrease the rent charged to a tenant for a rental unit as
prescribed if the landlord and the tenant agree that the landlord will cease to provide
anything referred to in subsection 123 (1) with respect to the tenant’s occupancy of the
rental unit. 2006, c. 17, s. 125.
Landlord Application for Rent Increase
Application for above guideline increase
126. (1) A landlord may apply to the Board for an order permitting the rent charged
to be increased by more than the guideline for any or all of the rental units in a residential
complex in any or all of the following cases:
1. An extraordinary increase in the cost for municipal taxes and charges or
utilities or both for the residential complex or any building in which the rental units
are located.
2. Eligible capital expenditures incurred respecting the residential complex
or one or more of the rental units in it.
3. Operating costs related to security services provided in respect of the
residential complex or any building in which the rental units are located by persons
not employed by the landlord.
2006, c. 17, s. 126 (1).
Interpretation
(2) In this section,
extraordinary increase means extraordinary increase as defined by or
determined in accordance with the regulations. 2006, c. 17, s. 126 (2).
When application made
(3) An application under this section shall be made at least 90 days before the
effective date of the first intended rent increase referred to in the application. 2006, c. 17, s. 126 (3).
Information for tenants
(4) If an application is made under this section that includes a claim for capital
expenditures, the landlord shall make information that accompanies the application under
subsection 185 (1) available to the tenants of the residential complex in accordance with
the prescribed rules. 2006, c. 17, s. 126 (4).
Rent chargeable before order
(5) If an application is made under this section and the landlord has given a notice
of rent increase as required, until an order authorizing the rent increase for the rental unit
takes effect, the landlord shall not require the tenant to pay a rent that exceeds the lesser
of,
(a) the new rent specified in the notice; and
(b) the greatest amount that the landlord could charge without applying for a
rent increase.
2006, c. 17, s. 126 (5).
Tenant may pay full amount
(6) Despite subsection (5), the tenant may choose to pay the amount set out in the
notice of rent increase pending the outcome of the landlord’s application and, if the tenant
does so, the landlord shall owe to the tenant any amount paid by the tenant exceeding the
amount allowed by the order of the Board. 2006, c. 17, s. 126 (6).
Eligible capital expenditures
(7) Subject to subsections (8) and (9), a capital expenditure is an eligible
capital expenditure for the purposes of this section if,
(a) it is necessary to protect or restore the physical integrity of the
residential complex or part of it;
(b) it is necessary to comply with subsection 20 (1) or clauses 161 (a)
to (e);
(c) it is necessary to maintain the provision of a plumbing, heating,
mechanical, electrical, ventilation or air conditioning system;
(d) it provides access for persons with disabilities;
(e) it promotes energy or water conservation; or
(f) it maintains or improves the security of the residential complex or
part of it.
2006, c. 17, s. 126 (7).
Exception
(8) A capital expenditure to replace a system or thing is not an eligible capital
expenditure for the purposes of this section if the system or thing that was replaced did
not require major repair or replacement, unless the replacement of the system or thing promotes,
(a) access for persons with disabilities;
(b) energy or water conservation; or
(c) security of the residential complex or part of it.
2006, c. 17, s. 126 (8).
Same
(9) A capital expenditure is not an eligible capital expenditure with respect to a
rental unit for the purposes of this section if a new tenant entered into a new tenancy
agreement in respect of the rental unit and the new tenancy agreement took effect after the
capital expenditure was completed. 2006, c. 17, s. 126 (9).
Order
(10) Subject to subsections (11) to (13), in an application under this section, the
Board shall make findings in accordance with the prescribed rules with respect to all of the
grounds of the application and, if it is satisfied that an order permitting the rent charged
to be increased by more than the guideline is justified, shall make an order,
(a) specifying the percentage by which the rent charged may be increased in
addition to the guideline; and
(b) subject to the prescribed rules, specifying a 12-month period during
which an increase permitted by clause (a) may take effect.
2006, c. 17, s. 126 (10).
Limitation
(11) If the Board is satisfied that an order permitting the rent charged to be
increased by more than the guideline is justified and that the percentage increase justified,
in whole or in part, by operating costs related to security services and by eligible capital
expenditures is more than 3 per cent,
(a) the percentage specified under clause (10) (a) that is attributable
to those costs and expenditures shall not be more than 3 per cent; and
(b) the order made under subsection (10) shall, in accordance with the
prescribed rules, specify a percentage by which the rent charged may be increased
in addition to the guideline in each of the two 12-month periods following the period
specified under clause (10) (b), but that percentage in each of those periods shall
not be more than 3 per cent.
2006, c. 17, s. 126 (11).
Serious breach
(12) Subsection (13) applies to a rental unit if the Board finds that,
(a) the landlord,
(i) has not completed items in work orders for which the
compliance period has expired and which are found by the Board to be
related to a serious breach of a health, safety, housing or maintenance standard,
(ii) has not completed specified repairs or replacements or
other work ordered by the Board under paragraph 4 of subsection 30 (1) and
found by the Board to be related to a serious breach of the landlord’s
obligations under subsection 20 (1) or section 161, or
(iii) is in serious breach of the landlord’s obligations under
subsection 20 (1) or section 161; and
(b) the rental unit is affected by,
(i) one or more items referred to in subclause (a) (i) that
have not been completed,
(ii) one or more repairs or replacements or other work referred
to in subclause (a) (ii) that has not been completed, or
(iii) a serious breach referred to in subclause (a) (iii).
2006, c. 17, s. 126 (12).
Same
(13) If this subsection applies to a rental unit, the Board shall,
(a) dismiss the application with respect to the rental unit; or
(b) provide, in any order made under subsection (10), that the rent
charged for the rental unit shall not be increased pursuant to the order until
the Board is satisfied, on a motion made by the landlord within the time period
specified by the Board, on notice to the tenant of the rental unit, that,
(i) all items referred to in subclause (12) (a) (i) that affect
the rental unit have been completed, if a finding was made under that subclause,
(ii) all repairs, replacements and other work referred to in
subclause (12) (a) (ii) that affect the rental unit have been completed, if a
finding was made under that subclause, and
(iii) the serious breach referred to in subclause (12) (a) (iii)
no longer affects the rental unit, if a finding was made under that subclause.
2006, c. 17, s. 126 (13).
Order not to apply to new tenant
(14) An order of the Board under subsection (10) with respect to a rental unit
ceases to be of any effect on and after the day a new tenant enters into a new tenancy
agreement with the landlord in respect of that rental unit if that agreement takes effect
on or after the day that is 90 days before the first effective date of a rent increase in
the order. 2006, c. 17, s. 126 (14).
Two ordered increases
127. Despite clause 126 (11) (b), if an order is made under subsection 126 (10)
with respect to a rental unit and a landlord has not yet taken all the increases in
rent for the rental unit permissible under a previous order pursuant to clause 126 (11) (b),
the landlord may increase the rent for the rental unit in accordance with the prescribed rules. 2006, c. 17, s. 127.
Reductions of Rent
Utilities
128. (1) If the Board issues an order under subsection 126 (10) permitting an
increase in rent that is due in whole or in part to an extraordinary increase in the cost
of utilities,
(a) the Board shall specify in the order the percentage increase that is
attributable to the extraordinary increase; and
(b) the Board shall include in the order a description of the landlord’s
obligations under subsections (2) and (3).
2006, c. 17, s. 128 (1).
Information for tenant
(2) If a landlord increases the rent charged to a tenant for a rental unit
pursuant to an order described in subsection (1), the landlord shall, in accordance with
the prescribed rules, provide that tenant with information on the total cost of utilities
for the residential complex. 2006, c. 17, s. 128 (2).
Rent reduction
(3) If a landlord increases the rent charged to a tenant for a rental unit pursuant
to an order described in subsection (1) and the cost of utilities for the residential complex
decreases by more than the prescribed percentage in the prescribed period, the landlord shall
reduce the rent charged to that tenant in accordance with the prescribed rules. 2006, c. 17, s. 128 (3).
Application
(4) This section ceases to apply to a tenant of a rental unit in respect of a
utility if the landlord ceases to provide the utility to the rental unit in accordance
with this Act or an agreement between the landlord and that tenant. 2006, c. 17, s. 128 (4).
Capital expenditures
129. If the Board issues an order under subsection 126 (10) permitting an
increase in rent that is due in whole or in part to eligible capital expenditures,
(a) the Board shall specify in the order the percentage increase that is
attributable to the eligible capital expenditures;
(b) the Board shall specify in the order a date, determined in accordance
with the prescribed rules, for the purpose of clause (c); and
(c) the order shall require that,
(i) : if the rent charged to a tenant for a rental unit is
increased pursuant to the order by the maximum percentage permitted by the
order and the tenant continues to occupy the rental unit on the date specified
under clause (b), the landlord shall, on that date, reduce the rent charged to
that tenant by the percentage specified under clause (a); and
(ii) if the rent charged to a tenant for a rental unit is increased
pursuant to the order by less than the maximum percentage permitted by the
order and the tenant continues to occupy the rental unit on the date specified
under clause (b), the landlord shall, on that date, reduce the rent charged to
that tenant by a percentage determined in accordance with the prescribed rules
that is equal to or lower than the percentage specified under clause (a).
2006, c. 17, s. 129.
Reduction in services
130. (1) A tenant of a rental unit may apply to the Board for an order for a
reduction of the rent charged for the rental unit due to a reduction or discontinuance in
services or facilities provided in respect of the rental unit or the residential complex. 2006, c. 17, s. 130 (1).
Same, former tenant
(2) A former tenant of a rental unit may apply under this section as a tenant of the
rental unit if the person was affected by the discontinuance or reduction of the services or
facilities while the person was a tenant of the rental unit. 2006, c. 17, s. 130 (2).
Order re lawful rent
(3) The Board shall make findings in accordance with the prescribed rules and may
order,
(a) that the rent charged be reduced by a specified amount;
(b) that there be a rebate to the tenant of any rent found to have been
unlawfully collected by the landlord;
(c) that the rent charged be reduced by a specified amount for a specified
period if there has been a temporary reduction in a service.
2006, c. 17, s. 130 (3).
Same
(4) An order under this section reducing rent takes effect on the day that the
discontinuance or reduction first occurred. 2006, c. 17, s. 130 (4).
Same, time limitation
(5) No application may be made under this section more than one year after a
reduction or discontinuance in a service or facility. 2006, c. 17, s. 130 (5).
Municipal taxes
131. (1) If the municipal property tax for a residential complex is reduced by more
than the prescribed percentage, the lawful rent for each of the rental units in
the complex is reduced in accordance with the prescribed rules. 2006, c. 17, s. 131 (1).
Effective date
(2) The rent reduction shall take effect on the date determined by the prescribed
rules, whether or not notice has been given under subsection (3). 2006, c. 17, s. 131 (2).
Notice
(3) If, for a residential complex with at least the prescribed number of rental
units, the rents that the tenants are required to pay are reduced under subsection (1),
the local municipality in which the residential complex is located shall, within the
prescribed period and by the prescribed method of service, notify the landlord and all of
the tenants of the residential complex of that fact. 2006, c. 17, s. 131 (3).
Same
(4) The notice shall be in writing in a form approved by the Board and shall,
(a) inform the tenants that their rent is reduced;
(b) set out the percentage by which their rent is reduced and the date
the reduction takes effect;
(c) inform the tenants that if the rent is not reduced in accordance with
the notice they may apply to the Board under section 135 for the return of money
illegally collected; and
(d) advise the landlord and the tenants of their right to apply for an order
under section 132.
2006, c. 17, s. 131 (4).
Same
(5) A local municipality that gives a notice under this section shall, on request,
give a copy to the Board or to the Ministry. 2006, c. 17, s. 131 (5).
Application for variation
132. (1) A landlord or a tenant may apply to the Board under the prescribed
circumstances for an order varying the amount by which the rent charged is to be reduced
under section 131. 2006, c. 17, s. 132 (1).
Same
(2) An application under subsection (1) must be made within the prescribed time.
2006, c. 17, s. 132 (2).
Determination and order
(3) The Board shall determine an application under this section in accordance
with the prescribed rules and shall issue an order setting out the percentage of the
rent reduction. 2006, c. 17, s. 132 (3).
Same
(4) An order under this section shall take effect on the effective date determined
under subsection 131 (2). 2006, c. 17, s. 132 (4).
Application, reduction in municipal taxes
133. (1) A tenant of a rental unit may apply to the Board for an order for a
reduction of the rent charged for the rental unit due to a reduction in the municipal taxes
and charges for the residential complex. 2006, c. 17, s.133 (1).
Order
(2) The Board shall make findings in accordance with the prescribed rules and may
order that the rent charged for the rental unit be reduced. 2006, c. 17, s. 133 (2).
Effective date
(3) An order under this section takes effect on a date determined in accordance
with the prescribed rules. 2006, c. 17, s. 133 (3).
Illegal Additional Charges
Additional charges prohibited
134. (1) Unless otherwise prescribed, no landlord shall, directly or indirectly,
with respect to any rental unit,
(a) collect or require or attempt to collect or require from a tenant or
prospective tenant of the rental unit a fee, premium, commission, bonus, penalty,
key deposit or other like amount of money whether or not the money is refundable;
(b) require or attempt to require a tenant or prospective tenant to pay
any consideration for goods or services as a condition for granting the tenancy or
continuing to permit occupancy of a rental unit if that consideration is in addition
to the rent the tenant is lawfully required to pay to the landlord; or
(c) rent any portion of the rental unit for a rent which, together with
all other rents payable for all other portions of the rental unit, is a sum that
is greater than the rent the landlord may lawfully charge for the rental unit.
2006, c. 17, s. 134 (1).
Same
(2) No superintendent, property manager or other person who acts on behalf of a
landlord with respect to a rental unit shall, directly or indirectly, with or without the
authority of the landlord, do any of the things mentioned in clause (1) (a), (b) or (c)
with respect to that rental unit. 2006, c. 17, s. 134 (2).
Same
(3) Unless otherwise prescribed, no tenant and no person acting on behalf of the
tenant shall, directly or indirectly,
(a) sublet a rental unit for a rent that is payable by one or more
subtenants and that is greater than the rent that is lawfully charged by the landlord
for the rental unit;
(b) collect or require or attempt to collect or require from any person
any fee, premium, commission, bonus, penalty, key deposit or other like amount of
money, for subletting a rental unit, for surrendering occupancy of a rental unit or
for otherwise parting with possession of a rental unit; or
(c) require or attempt to require a person to pay any consideration for goods
or services as a condition for the subletting, assignment or surrender of occupancy
or possession in addition to the rent the person is lawfully required to pay to the
tenant or landlord.
2006, c. 17, s. 134 (3).
Money Collected Illegally
Money collected illegally
135. (1) A tenant or former tenant of a rental unit may apply to the Board for an
order that the landlord, superintendent or agent of the landlord pay to the tenant any money
the person collected or retained in contravention of this Act or the Tenant Protection Act,
1997. 2006, c. 17, s. 135 (1).
Prospective tenants
(2) A prospective tenant may apply to the Board for an order under subsection (1).
2006, c. 17, s. 135 (2).
Subtenants
(3) A subtenant may apply to the Board for an order under subsection (1) as if the
subtenant were the tenant and the tenant were the landlord. 2006, c. 17, s. 135 (3).
Time limitation
(4) No order shall be made under this section with respect to an application filed
more than one year after the person collected or retained money in contravention of this Act
or the Tenant Protection Act, 1997. 2006, c. 17, s. 135 (4).
Rent deemed lawful
136. (1) Rent charged one or more years earlier shall be deemed to be lawful rent
unless an application has been made within one year after the date that amount was first
charged and the lawfulness of the rent charged is in issue in the application. 2006, c. 17, s. 136 (1).
Increase deemed lawful
(2) An increase in rent shall be deemed to be lawful unless an application has been
made within one year after the date the increase was first charged and the lawfulness of the
rent increase is in issue in the application. 2006, c. 17, s. 136 (2).
s. 122 prevails
(3) Nothing in this section shall be interpreted to deprive a tenant of the right
to apply for and get relief in an application under section 122 within the time period
set out in that section. 2006, c. 17, s. 136 (3).
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