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Tenant Protection Act index page for this old law


This law was repealed on January 31, 2007 and is no longer in use

Ontario Tenant Protection Act
PART VI

RULES RELATING TO RENT




General Rules


Security deposits, limitation

117. (1) The only security deposit that a landlord may collect is a rent deposit collected in accordance with section 118.


Definition

(2) In this section and section 118,

"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. 1997, c. 24, s. 117.


Rent deposit may be required

118. (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.


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.


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).


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.


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.


Interest

(6) A landlord of a rental unit shall pay interest to the tenant annually on the amount of the rent deposit at the rate of 6 per cent per year.


Same

(7) 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.


Rent deposit applied to last rent

(8) 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.


Transitional

(9) A security deposit paid before the day this section is proclaimed in force shall be deemed to be a rent deposit for the purposes of this section. 1997, c. 24, s. 118.


Rent deposit, prospective tenant

118.1 (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. 2001, c. 9, Sched. J, s. 4 (6).


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 118 in respect of the other rental unit. 2001, c. 9, Sched. J, s. 4 (6).


Post-dated cheques

119. Neither a landlord nor a tenancy agreement shall require a tenant to provide post-dated cheques or other negotiable instruments for payment of rent. 1997, c. 24, s. 119.


Receipt for payment

120. A landlord shall provide free of charge to a tenant, upon the tenant's request, a receipt for the payment of any rent, rent deposit, arrears of rent or any other amount paid to the landlord. 1997, c. 24, s. 120.


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General Rules Concerning Amount of Rent Charged


Landlord not to charge more than lawful rent

121. (1) No landlord shall charge rent for a rental unit in an amount that is greater than the lawful rent permitted under this Part.


Lawful rent where discounts offered

(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.


Lawful rent where higher rent for first rental period

(3) 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. 1997, c. 24, s. 121.


Landlord's duty, rent increases

122. No landlord shall increase the rent charged to a tenant for a rental unit, except in accordance with this Part. 1997, c. 24, s. 122.


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Lawful Rent


Lawful rent when this Act comes into force

123. 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 Part 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 Rent Control Act, 1992, the amount that it was lawful to charge on that day. 1997, c. 24, s. 123.


New tenant

124. Subject to section 121, 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. 1997, c. 24, s. 124.


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Miscellaneous new tenancy agreements


Assignment without consent

125. (1) If a person occupies a rental unit as a result of an assignment of the unit without the consent of the landlord, the landlord may negotiate a new tenancy agreement with the person.


Overholding subtenant

(2) If a subtenant continues to occupy a rental unit after the end of the subtenancy and the tenant has abandoned the rental unit, the landlord may negotiate a new tenancy agreement with the subtenant.


Limitation

(3) Section 124 applies to tenancy agreements entered into under subsection (1) or (2) if they are entered into no later than 60 days after the landlord discovers the unauthorized occupancy.


Deemed assignment

(4) A person's occupation of a rental unit shall be deemed to be an assignment of the rental unit with the consent of the landlord as of the date the unauthorized occupancy began if,

    (a) a tenancy agreement is not entered into under subsection (1) or (2) within the period set out in subsection (3);

    (b) the landlord does not apply to the Tribunal under section 81 for an order evicting the person within 60 days of the landlord discovering the unauthorized occupancy; and

    (c) neither the landlord nor the tenant applies to the Tribunal under section 82 within 60 days after the end of the subtenancy for an order evicting the subtenant. 1997, c. 24, s. 125.


12-month rule

126. (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, otherwise.


Exception

(2) An increase in rent under section 132 shall be deemed not to be an increase in rent for the purposes of this section. 1997, c. 24, s. 126.


Notice of rent increase required

127. (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.


Same

(2) Subsection (1) applies even if the rent charged is increased in accordance with an order under section 138.


Contents of notice

(3) The notice shall be in a form approved by the Tribunal and shall set out the landlord's intention to increase the rent and the amount of the new rent.


Increase void without notice

(4) An increase in rent is void if the landlord has not given the notice required by this section, and before the landlord can take the increase the landlord must give a new notice. 1997, c. 24, s. 127.


Deemed acceptance where no notice of termination

128. A tenant who does not give a landlord notice of termination of a tenancy under section 46 after receiving notice of an intended rent increase under section 127 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. 1997, c. 24, s. 128.


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Guideline


Guideline increase

129. (1) No landlord may increase the rent charged to a tenant or to an assignee under section 17 during the term of their tenancy by more than the guideline except in accordance with sections 130 to 139.


Guideline

(2) The Minister shall determine the guideline in effect for each calendar year as follows:

    1. Determine the rent control index taking into account the weights and the three year moving averages of the operating cost categories as set out in the prescribed Table.

    2. The part of the guideline allocated to operating costs is equal to 55 per cent of the percentage increase in the rent control index, rounded to the nearest 1/10th of 1 per cent.

    3. The guideline is the sum of the part of the guideline allocated to operating costs and 2 per cent.


Publication of guideline

(3) The Minister shall have the guideline for each year published in The Ontario Gazette not later than the 31st day of August of the preceding year.


Guideline for 1997, 1998

(4) The guideline for the calendar year 1997 and for the calendar year 1998 shall be the rent control guideline for each of those years established under the Rent Control Act, 1992. 1997, c. 24, s. 129.


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Agreements to Increase, Decrease Rent


Agreement

130. (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.


Same

(2) An agreement under subsection (1) shall be in the form approved by the Tribunal 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.


Same

(3) A landlord shall not increase rent charged under this section by more than the guideline plus 4 per cent of the previous lawful rent charged.


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.


Agreement in force

(5) An agreement under this section may come into force no earlier than six days after it has been signed.


Notice of rent increase not required

(6) Section 127 does not apply with respect to a rent increase under this section.


When prior notice void

(7) Despite any deemed acceptance of a rent increase under section 128, 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. 1997, c. 24, s. 130.


Tenant application

131. (1) A tenant or former tenant may apply to the Tribunal for relief if the landlord and the tenant or former tenant agreed to an increase in rent under section 130 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.


Time limitation

(2) No application may be made under this section more than two years after the rent increase becomes effective.


Order

(3) In an application under this section, the Tribunal 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. 1997, c. 24, s. 131.


Additional services, etc.

132. (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.


Non-application of 12-month rule, notice of rent increase

(2) Sections 126 and 127 do not apply with respect to a rent increase under this section. 1997, c. 24, s. 132.


Coerced agreement void

133. An agreement under section 130 or 132 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. 1997, c. 24, s. 133.


Decrease in services, etc.

134. 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 132 (1) with respect to the tenant's occupancy of the rental unit. 1997, c. 24, s. 134.


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Additional Grounds for Rent Increase


Increase to maximum rent

135. (1) A landlord may increase the rent charged to a tenant of a rental unit up to the maximum rent determined under subsection (2) if the tenant of the rental unit has been a tenant of the rental unit since the day before this section is proclaimed in force.


Maximum rent

(2) For the purposes of subsection (1), the maximum rent is the amount determined by,

    (a) determining the maximum rent under the Rent Control Act, 1992 on the day before this section was proclaimed in force;

    (b) adding to that amount any increases in maximum rent resulting from an order issued under section 21 of the Rent Control Act, 1992 or a notice of carry forward issued under section 22 of that Act; and

    (c) subtracting from that amount the amount of any decreases in maximum rent ordered under section 28 or 33 of the Rent Control Act, 1992. 1997, c. 24, s. 135.


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Reduction of Rent - Municipal Taxes Reduced


Municipal taxes reduced

136. (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.


Effective date

(2) The rent reduction shall take effect on the prescribed date, whether or not notice has been given under subsection (3).


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 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.


Same

(4) The notice shall be in writing in a form approved by the Tribunal 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 Tribunal under section 144 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 137.


Same

(5) The local municipality shall give a copy of a notice under this section to the Tribunal or to the Ministry, on request. 1997, c. 24, s. 136.


Application for variation

137. (1) A landlord or a tenant may apply to the Tribunal under the prescribed circumstances for an order varying the amount by which the rent charged is to be reduced under section 136.


Same

(2) An application under subsection (1) must be made within the prescribed time.


Determination and order

(3) The Tribunal 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.


Same

(4) An order under this section shall take effect on the effective date determined under subsection 136 (2). 1997, c. 24, s. 137.


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Landlord Application for Rent Increase


Increased operating costs, capital expenditures

138. (1) A landlord may apply to the Tribunal for an order allowing 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 whole residential complex.

    2. 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 by persons not employed by the landlord.


Same

(2) An increase in the cost of municipal taxes and charges or utilities is extraordinary if it is greater than the percentage increase set out for the corresponding cost category recognized in the Table referred to in subsection 129 (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.


Rent chargeable before order

(4) 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.


Tenant may pay full amount

(5) Despite subsection (4), 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 Tribunal.


Order

(6) In an application under this section, the Tribunal shall make findings in accordance with the prescribed rules with respect to all of the grounds of the application and shall order the percentage rent increase that may be taken and the time period as prescribed, during which it may be taken.


Same

(7) In making findings in an application under paragraph 2 of subsection (1), the Tribunal may disallow a capital expenditure if the Tribunal finds the capital expenditure is unreasonable.


Same

(8) The Tribunal shall not make a finding under subsection (7) that a capital expenditure is unreasonable if the capital expenditure,

    (a) is necessary to protect or restore the physical integrity of the residential complex or part of it;

    (b) is necessary to maintain maintenance, health, safety or other housing related standards required by law;

    (c) is necessary to maintain the provision of a plumbing, heating, mechanical, electrical, ventilation or air conditioning system;

    (d) provides access for persons with disabilities;

    (e) promotes energy or water conservation; or

    (f) maintains or improves the security of the residential complex.


Limitation

(9) The Tribunal shall not make an order with respect to a rental unit that increases the lawful rent with respect to capital expenditures or operating costs related to security services in an amount that is greater than 4 per cent of the previous lawful rent.


Same

(10) If the Tribunal determines with respect to a rental unit that an increase in lawful rent of more than 4 per cent of the previous lawful rent is justified with respect to capital expenditures, operating costs related to security services or both, the Tribunal shall also order, in accordance with the prescribed rules, increases in rent for the following years in an amount not to exceed in any year 4 per cent of the lawful rent for the previous year, until the total increase has been taken.


Order not to apply to new tenant

(11) An order of the Tribunal under subsection (6) or (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 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. 1997, c. 24, s. 138.


Two ordered increases

139. If an order is made under subsection 138 (6) 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 under subsection 138 (10), the landlord may increase the rent for the rental unit in accordance with the prescribed rules. 1997, c. 24, s. 139.


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Illegal Additional Charges


Additional charges prohibited

140. (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 lawfully may charge for the rental unit. 1997, c. 24, s. 140 (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. 1997, c. 24, s. 140 (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) Repealed: 2000, c. 26, Sched. K, s. 6 (22).

    (c) 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

    (d) 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. 1997, c. 24, s. 140 (3); 2000, c. 26, Sched. K, s. 6 (21-23).


Rent deemed lawful

141. (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.


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.


Delayed effect

(3) Subsections (1) and (2) shall not take effect until the day that is six months after this section is proclaimed in force.


s. 131 prevails

(4) 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 131 within the time period set out in that section. 1997, c. 24, s. 141.


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Applications to Tribunal by Tenant


Reduction in rent, reduction in services

142. (1) A tenant of a rental unit may apply to the Tribunal 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.


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.


Order re lawful rent

(3) The Tribunal 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.


Same

(4) An order under this section reducing rent takes effect on the day that the discontinuance or reduction first occurred.


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. 1997, c. 24, s. 142.


Reduction in rent, reduction in taxes

143. (1) A tenant of a rental unit may apply to the Tribunal 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.


Order

(2) The Tribunal shall make findings in accordance with the prescribed rules and may order that the rent charged for the rental unit be reduced. 1997, c. 24, s. 143.


Money collected illegally

144. (1) A tenant or former tenant of a rental unit may apply to the Tribunal 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, the Rent Control Act, 1992 or Part IV of the Landlord and Tenant Act.


Prospective tenants

(2) A prospective tenant may apply to the Tribunal for an order under subsection (1).


Subtenants

(3) A subtenant may apply to the Tribunal for an order under subsection (1) as if the subtenant were the tenant and the tenant were the landlord.


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, the Rent Control Act, 1992 or Part IV of the Landlord and Tenant Act. 1997, c. 24, s. 144.


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