In this ISSUE: Landlord and Tenant Board NEW FORMS Release date: April 1, 2015 Those who found the Landlord and Tenant Board forms difficult to understand and complete will be pleased to hear that the LTB has updated all the forms that may be required during the course of a tenancy. The updated forms will be available for use starting April 1, 2015, and because the use of old forms could be detrimental to your case, landlords are urged to discard the old forms and replace with new forms. The new, updated forms, can be found at www.ltb.gov.on.ca/en/Forms/updatedforms.html Some of the changes on the applications include additional sections that may be completed for the Request for Accommodation or French-Language Services, and to inform the Board of various dates (within the 3 weeks after filing) that you are unavailable to attend a hearing. Other important changes for landlords to be aware of is the change from “Agent” to “Representative” on both the notices and applications. The Statutory Powers Procedure Act defines representative as “a person authorized under the Law Society Act”. Therefore, landlords are only able to have a licensed paralegal or lawyer sign the notice or application as representative. Landlords are encouraged to complete, serve and file the notices and applications themselves if they are unable or unwilling to hire a legal representative. Transitional Period - Landlords (and tenants) are asked to begin using the new LTB forms on the date they become effective, April 1, 2015. However, there is a transitional period during which the use of the old forms will be accepted. This transitional period ends on May 31, 2015. The Reason Why Your Tenant May Not Be Paying Rent . . . . 2 ONLINE Town Hall Meetings .........................2 Advertising Your Rental Unit ........................ 3 Landlord’s Responsibility to Maintain and Repair the Unit .........................3 Self Help Tips . . . . . . . . . . . 4 Did You Know? . . . . . . . . . . . 5 Look for more changes at LTB in July 2015 What’s New . . . . . . . . . . . . . . 6 There are more changes expected at the Landlord and Tenant Board related to serving the Notice of Hearing. Beginning on July 1, 2015, the Landlord and Tenant Board will begin serving both the applicant and the respondent with the Notice of Hearing in most cases. For landlords, this will eliminate a step in the termination process that can sometimes be both challenging and confrontational. By removing the responsibility of serving the Notice of Hearing from the landlord, the need to complete and submit a Certificate of Service is also eliminated. The Board will no longer send a letter to the respondents confirming the information in the Notice of Hearing. The authority for the change to sections 188 and 189* of the Residential Tenancies Act are amendments which were made in 2011 but not proclaimed. On July 1, 2015, section 188 will be repealed and replaced with: 188. (1) the Board shall do the following with respect to an application made to the Board: 1. Give the parties other than the applicant a copy of the application within the time set out in the Rules. 2. In such circumstances as may be prescribed, give the prescribed parties such documents or information as may be prescribed. *To review section 189 amendments, see the RTA at http://e-laws.on.ca Disclaimer The material contained in this publication is intended for information purposes only, it is not legal advice. Landlord's Self-Help Centre Suite 400 - 425 Adelaide St. W. Toronto, Ontario M5V 3C1 Tel: 416-504-5190 1-800-730-3218 Funded by: The Landlord and Tenant Board’s website also advises: “The rule governing these new procedures will be posted for consultation in early spring.” March 2015 www.landlordselfhelp.com Quarterly News March 2015 The Reason Your Tenants May Not Be Paying Their Rent It is a situation that is happening much more frequently - after filing an application at the Landlord and Tenant Board for an order of eviction and rent arrears, a landlord attends the hearing with the expectation of getting a standard order for the tenant to pay the rent or have their tenancy terminated. At some point in the proceedings the tenant or their agent raises the fact that the landlord never gave the tenant their legal name and address in written form, so therefore they are excused from the obligation to pay rent. Often the tenant will provide a copy of their lease agreement as evidence, since their agreement lists the address of the rental unit but fails to list the landlord’s address. At this point the Board Member may clarify with the landlord that if there is no other paperwork to counter the tenant’s evidence, then the landlord was not legally in a position to serve a non-payment of rent notice to the tenant, as the obligation to pay rent was indeed suspended until such time as the required information had been provided to the tenant. The application is then usually dismissed. Section 12 of the Residential Tenancies Act, 2006 (The Act) spells out the landlord’s obligation to provide their legal name and mailing address in writing to the tenant, whether the tenancy agreement is in writing or not, as follows: 12. (1) Every written tenancy agreement entered into on or after June 17, 1998 shall set out the legal name and address of the landlord to be used for the purpose of giving notices or other documents under this Act. 2006, c. 17, s. 12 (1). Copy of tenancy agreement (2) If a tenancy agreement entered into on or after June 17, 1998 is in writing, the landlord shall give a copy of the agreement, signed by the landlord and the tenant, to the tenant within 21 days after the tenant signs it and gives it to the landlord. Notice if agreement not in writing (3) If a tenancy agreement entered into on or after June 17, 1998 is not in writing, the landlord shall, within 21 days after the tenancy begins, give to the tenant written notice of the legal name and address of the landlord to be used for giving notices and other documents under this Act. Failure to comply (4) Until a landlord has complied with subsections (1) and (2), or with subsection (3), as the case may be, (a) the tenant’s obligation to pay rent is suspended; and (b) the landlord shall not require the tenant to pay rent. After compliance (5) After the landlord has complied with subsections (1) and (2), or with subsection (3), as the case may be, the landlord may require the tenant to pay any rent withheld by the tenant under subsection (4). What do landlords need to do with this information? Where the tenancy agreement is in writing – A landlord has an obligation to provide a copy of the lease (that includes their name and address) within 21 days of the lease being signed; Where the tenancy agreement is not in writing A landlord has an obligation to give their legal name and address in writing within 21 days of the date the tenancy begins (this is the date that the tenant is entitled to occupy the rental unit). The address does not have to be the landlord’s home address; it can simply be a mailing address. In either situation, because this obligation comes before the tenant’s obligation to pay rent, the landlord cannot rely on the argument that the tenant was provided with the landlord’s name and address on the N4 notice. The reason for this is that the tenant does not have to read the notice for non-payment of rent, because they are not actually in arrears of rent until after the information has been properly provided to them by the landlord. In order to avoid payment problems or lengthy delays at the Landlord and Tenant Board, it is therefore extremely important for landlords to ensure that they understand and comply with this section of the Act, and that they are able to prove that they have done so. ONLINE Town Hall Meetings Landlord’s Self-Help Centre launched the Online Town Hall Meeting project last year to serve as a learning platform for the small landlord community across the province. The meetings are held monthly and provide information on a range of issues landlords commonly face throughout the life cycle of a tenancy agreement. The Town Hall Meetings also include an opportunity for Q and A. A growing online self-serve learning resource can be found at www.landlordselfhelp.com/townhall.htm. It consists of the slide decks used for each of the Town Hall Meetings which are typically posted by LSHC within a week of the presentation. LSHC’s goal is to support Ontario’s small-scale landlord community develop the skills and knowledge which are essential to the effective management of residential rental agreements and relationships. LSHC is now expanding the Town Hall Meeting model to provide specialized information which is often sought by the community. Join us on May 11 when we partner with the NonSmokers’ Rights Association and the Toronto Public Health, to present “Implementing a Smoke-Free Policy”. Online registration can be found at http://lshc-townhall17.eventbrite.ca www.landlordselfhelp.com Quarterly News March 2015 Advertising your rental unit When advertising a unit for rent, landlords are obligated “to treat tenants who are seeking housing or trying to maintain their housing with fairness and dignity.”1 This means that landlords should not include anything in their advertisements that would suggest they are discriminating against prospective tenants. The Human Rights Code says that a landlord cannot deny a tenant housing because of: Receipt of public assistance, like welfare or employment insurance Gender identity Race, colour or ethnic origin Gender expression Age, including 16- or 17-year-olds who are independent of their parents Religious beliefs or practices Family status Place of origin Marital status, including people with commonly-law or same-sex partners Sexual orientation Ancestry, including people of Aboriginal descent Disability Sex, including pregnancy Citizenship, including refugee status. Therefore, when composing an advertisement for a rental unit (whether for print or online), landlords must be careful not to include phrases that may discourage an individual who does not fit the profile of a tenant you are interested in renting to. Landlords should keep an open mind when dealing with prospective tenants; ads should focus only on the unit instead of on the ideal tenant, as that could result in a discrimination claim against the landlord at the Human Rights Tribunal. The following are a few examples of discriminatory phrases which should NOT be included in rental unit advertisements: o Adult building o Ideal for quiet students o Must provide proof of employment o No ODSP recipients o Suitable for single professional Landlords are allowed to be discriminatory or selective with prospective tenants in a small number of ways, but it is important that a landlord can prove that these selective or discriminating ways are “reasonable and justifiable in order to meet business objectives such as minimizing risk.”1 For example, a landlord can decide not to rent to a prospective tenant because they want their unit to be a smoke-free unit and the prospective tenant smokes. Key Tips for Rental Advertisements: Don’t describe your ideal tenant Don’t use the rental advertisements to screen tenants “It is best for the landlord to advertise the unit in ways which focus only on the unit instead of on the ideal tenant.” Do describe the unit and the features it has Screening of prospective tenants is important, but this should happen after they have filled out and submitted the rental application. This is the tool that landlords should be using when deciding whether or not to rent their unit to a prospective tenant. The same rental application should be given to each prospective tenant that is interested in the rental unit. The Landlord’s Self-Help Centre’s, A Landlord’s Reference Guide to Human Rights in Rental Housing, contains more information about the Human Rights Code as it applies to rental housing, www.landlordselfhelp.com/human_rights/HR_Book_final2012.pdf In addition, the Ontario Human Rights Commission has a useful fact sheet that looks at what landlords should/should not include in their advertisements, http://ohrc.on.ca/en/writing-fair-rental-housing-ad-fact-sheet 1 A Landlord’s Reference Guide to Human Rights in Rental Housing Contributed by Carolina Anna Longo Carolina is a paralegal student participating in LSHC’s Paralegal Student Co-op Program Landlord’s responsibility to maintain and repair the rental unit Section 20(1) of the Residential Tenancies Act states” that a landlord is responsible for providing and maintaining a residential complex, including the rental units in it, in a good state of repair and fit for habitation and for complying with health, safety, housing and maintenance standards. “ Some landlords wrongly assume they are not responsible for deficiencies in the unit that the tenant was aware of prior to taking possession. Section 20(2) goes on to state that section 20(1) applies even if the tenant was aware of the state of nonrepair or contravention of a standard before entering into the tenancy agreement. www.landlordselfhelp.com Furthermore, a landlord cannot escape the obligations imposed by the RTA by including contractual language in the lease which transfers the maintenance and repair obligations to the tenant. For example, landlords have inserted clauses into lease agreements that state the tenant is responsible to maintain the carbon monoxide alarms, or repair leaky pipes. In Montgomery v. Van, the Ontario Court of Appeal has made it clear that a clause in the lease agreement that shifts the responsibility for maintenance and repair to the tenant is inconsistent with the Residential Tenancies Act and will be considered void pursuant to section 16 of the Residential Tenancies Act. [Continued on page 6] Quarterly News Where March 2015 Self-Help TIPS In this issue of Self-Help Tips we discuss the importance of a written tenancy agreement and outline the key clauses a landlord should include in their agreement. Once a written tenancy agreement is entered into, and has Does a rental agreement have to be in writing? Although the Residential Tenancies Act states that a tenancy agreement can be written, oral or implied, Landlord’s Self-Help Centre strongly recommends that landlords have a written agreement. A written tenancy agreement, often called a lease, creates a record of the terms agreed upon by the landlord and tenant. Whether there is a written or oral agreement, landlords must provide new tenants with information about the rights and responsibilities of landlords and tenants, and about the role of the Landlord and Tenant Board. The Landlord and Tenant Board brochure called “Information for New Tenants” is what landlords must provide to new tenants on or before the start of the tenancy and can be can be found at: http://www.ltb.gov.on.ca/en/Key_Information/STEL02_111600.h tml. Written Tenancy Agreement A written tenancy agreement allows both parties to clearly define and document the duties and responsibilities of one another. If a dispute arises, a written agreement may help to resolve the issues. Section 4 of the RTA states that if a rental agreement contains a provision that conflicts with the Act or the regulations, the Act will prevail over the clauses in a rental agreement. Therefore, clauses contained in a rental agreement that conflict with the RTA are not binding or enforceable. Some clauses in a lease are preventative clauses which may only act as an incentive, but may not necessarily be easy to enforce, for example, “no pet” clauses or limiting the number of occupants. Tips been signed by both the landlord and tenant, the landlord is required to provide the tenant a copy within 21 days. A rental agreement can be for a ‘fixed term’ or can be ‘periodic’. A ‘fixed term’ rental agreement is where the tenant agrees to occupy the rental unit for a specific period of time, usually a one-year period. A ‘periodic’ rental agreement is a rental agreement without a fixed term, for example, a month to month agreement or depending on the length of time between each rent payment. Renewal of a Rental Agreement If a rental agreement for a fixed term ends and has not been renewed or terminated, it is deemed to be renewed as a monthly tenancy under the same terms and conditions that are contained in the expired rental agreement. The same would apply to a periodic tenancy. Many landlords mistakenly believe that the tenant must vacate the unit once a rental agreement has expired. However, the tenant has security of tenancy which means that the tenant can remain in the rental unit unless the tenant decides to vacate and gives notice to terminate the tenancy, or the landlord gives notice to end the tenancy for a reason permitted under the RTA. The tenant has the option to renew the lease or remain as a monthly tenant with the same terms and conditions of the expired lease. Conditions in a Rental Agreement The Residential Tenancies Act cannot provide clarity on all matters, so before renting out a unit, landlords should try to think of all property-specific concerns and establish their rights in each matter using the tenancy agreement. A written rental agreement: must state the legal name and address of the landlord; state the tenant(s) legal name(s); specify the date the tenancy begins; include information about the last month’s rent deposit, the rent amount, when the rent is due and how it is to be paid by the tenant; outline the tenant’s and the landlord’s responsibilities pertaining to snow removal, garbage removal, maintaining the lawn etc.; describe which services are included in the rent or whether extra charges must be paid for any services for example, heat, hydro, parking, laundry facilities, etc.; reserve the right to enter the rental unit for any other reason not specified in the RTA; include a clause requiring the tenant to provide you with written notification of any maintenance issues; state that the tenant(s) must provide you with a written request for your approval when assigning or subletting the rental unit; state that the tenant(s) is responsible to obtain their own tenant insurance; include any reasonable special clauses you may wish to add for example, a “No Smoking” clause if you wish that your tenant refrain from smoking in the rental unit; confirm that the tenant received a copy of the brochure Information for New Tenants with the tenancy agreement. Quarterly News March 2015 Did You Know? Q: One of my tenants was in arrears of rent so I filed a L9 Application with the Landlord and Tenant Board to obtain an order for the arrears of rent; I believed the tenant was moving out because he told me he was leaving. I obtained the order for arrears but now the tenant remains in the unit and continues not paying. How do I deal with this now? Since the tenant is still in the unit and continues not paying rent, the only thing you can do at this point is to serve the Notice to End a Tenancy Early for Nonpayment of Rent (Form N4). However, you can only include on the N4 the new rent that the tenant owes, do not include the previous arrears that have already been decided in the order obtained based on the L9 Application. Q: My tenant has not paid his rent for two months, I have applied to the Landlord and Tenant Board but my hearing is still a month away. I am falling behind on my mortgage and utility bills and I was thinking of shutting off the hydro in the unit because I just can’t afford to pay. Can I do that? Shutting off the hydro is not the solution to this problem and there are serious consequences for doing so. Hydro is a vital service and withholding a vital service is considered an offence under the Residential Tenancies Act. The tenant could report this to the Investigations and Enforcement Unit who would investigate and possibly charge the landlord, the penalty is a fine of up to $25,000. Q: I am renting out my home and there is a lease agreement for one year, I plan on moving back in to the house and I understand this is one of the reasons I can terminate only at the end of the lease, but I’m not sure at which point I can serve notice to the tenant. Can I give the notice prior to the lease expiring or do I have to wait until it expires and then give the notice. Can you clarify this? When there is a fixed term lease and the landlord plans to move in to the unit, you do not have to wait until the lease expires to give this type of the notice. In this case you would be serving the Form N12 and this notice can be given 60 days prior to the end of the lease with the termination date being the last day of the term/lease. The landlord is also permitted to file an application with the Landlord and Tenant Board any time after serving the N12 notice if the landlord believes the tenant may not leave by the termination date. Q: I have found out that one of my tenants is smoking marijuana on the premises and other tenants have been complaining about it. Can I serve the tenant the notice of termination for an illegal act (Form N6)? It’s not advisable to issue a notice of termination based on illegal act for this type of situation. The provision for termination based on an illegal act is used when the act is more substantial than smoking marijuana. It’s unlikely that you would be successful in obtaining termination especially if there has been no police involvement and no charges laid. Termination for an illegal act based on drugs is generally used in circumstances involving the production of an illegal drug, trafficking in an illegal drug, or possession of an illegal drug for the purposes of trafficking. In a situation where the tenant smoking marijuana is disturbing the other tenants then the more appropriate notice to issue is the Form N5 based on the reason that the tenant is interfering with the reasonable enjoyment of the premises by the other tenants. Q: I recently entered one of my rental units to conduct a maintenance inspection which I normally do in the spring and in the fall. I was shocked to see the condition of the unit as it was very cluttered and filthy. I brought this to the tenant’s attention and she was very upset and told me that it was none of my business how she keeps her place. Is there anything I can do about this? You may not be able to do anything about this type of problem. Although the law states that the tenant is responsible for ordinary cleanliness of the premises, the law does not provide a remedy for the landlord if the tenant does not comply with this. However, if the problem is so severe that it starts to interfere with the other tenants or the landlord’s reasonable enjoyment of the premises, the landlord can issue a notice based on these grounds. The notice for this reason is the Form N5 – Notice to Terminate a Tenancy Early. After being given this notice the tenant will have seven days to correct the situation and if not corrected within that time period the landlord can apply to the Landlord and Tenant Board to go to a hearing for a decision on the matter. Quarterly News March 2015 What’s New? Law Help Ontario – PBLO has launched a new service that aims to help small landlords! Law Help Ontario offers free legal advice (approx. 30 minutes per visit) in person (on specific days), and by phone at its help centres in Toronto and Ottawa. To receive assistance at the Law Help Ontario help centre, you must be a small-scale residential landlord (rent a basement apt., a flat in his/her home, duplex, triplex, and condos etc.) and meet eligibility requirements. The following services are available: Offer free legal advice by pro bono lawyers* (this may include advising a client regarding complex issues that may involve a landlord/tenant relation and other area of law); Explain the Landlord and Tenant Board processes (how to prepare for a hearing, how to present a case, how to present evidence/cross examine tenants and witnesses, how to conduct mediation and make settlement offers, and review Landlord and Tenant Board Orders): Discuss considerations clients should think about before starting a case at the Landlord and Tenant Board or other court; Assist clients in interpreting court/tribunal rules (this may include discussing condo bylaws, condo boards, and conflicts with the Residential Tenancies Act); Identify the court/tribunal forms clients may need and guide clients in completing these forms; Help to identify strengths and weaknesses of cases; Assist clients with post-tenancy issues (enforcing orders, damage, unpaid utilities, etc.); Assist clients in bringing an appeal, responding to an appeal, or bringing motions to quash and appeal. The project is appointment based and it will have one lawyer available every Thursday by phone or in person. Track and Enforce Landlord and Tenant Board Orders LSHC was recently contacted by MPP Catherine Fife’s constituency office to advise that the MPP had launched a campaign aimed at amending the Residential Tenancies Act to include provisions for tracking LTB orders as well as a mechanism to ensure enforcement. The constituency office had been receiving a lot of calls from landlords and tenants concerning the costs and difficulties associated with enforcing Landlord and Tenant Board orders, especially those regarding payments. They advised many constituents do not bother enforcing their orders or filing claims due to the challenges. Catherine Fife’s office would like to see a change and has started a petition which is intended to begin putting pressure on the Minister of Housing and Municipal Affairs to review and make changes to the Residential Tenancies Act in order to alleviate the challenges that Ontarians have been experiencing with respect to enforcement and collection. The petition is available online at Track and Enforce Landlord and Tenant Orders: Amend the Residential Tenancies Act to include provisions for tracking Landlord and Tenant Board of Ontario orders as well as mechanisms to ensure enforcement. [http://catherinefife.com/wpcontent/uploads/catherinefife.com/2015/01/2015-01-Landlord-TenantOrders.pdf]. AODA Guide for Landlords Many small-scale landlords are unaware of their obligations under the Accessibility for Ontarians with Disability Act (AODA). If you have just one employee you are subject to the provisions of the Act. The Centre for Equality Rights in Accommodation is developing a guide, "Unlocking the AODA: Landlords' Obligations Under the AODA", with input from landlords. The guide and tool kit is expected to be available in late spring, stay tuned for details in the next issue. www.facebook.com/landlordselfhelp Visit https://www.lawhelpontario.org/help-landlords/ to learn more and/or complete an application. Landlord’s responsibility to maintain and repair the rental unit (continued from page 3) Landlords must ensure the rental unit is properly maintained and in compliance with health, housing, safety and maintenance standards before the tenant moves in and throughout the tenancy. If the landlord fails to maintain the property, a tenant can apply to the Landlord and Tenant Board under section 29(1) of the Residential Tenancies Act to determine if the landlord is in breach of the obligations imposed under section 20(1). If the Board finds that a breach occurred, section 30 of the RTA provides many remedies which may be ordered, including ordering the work to be done, abatement of rent, and termination of the tenancy. What is the tenant responsible for? The tenant is responsible for the repair of undue damage to the rental unit and the complex whether caused willfully or negligently by the tenant, occupant, or other person permitted by the tenant to be in the residential complex as detailed in section 34 of the RTA. Section 33 of the Act requires the tenant to maintain the premises to a standard of ordinary cleanliness. If a tenant causes undue damage or fails to maintain their unit to this standard the landlord may serve a notice of termination. Contributed by Jatinder Virdi Jatinder is a paralegal student participating in LSHC’s Paralegal Student Co-op Program Disclaimer @LSHC1 www.landlordselfhelp.com The material contained in this publication is intended for information purposes only. It is not legal advice.
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