Ontario’s rental landscape continues to evolve, with new changes introduced through Bill 97 – the Helping Homebuyers, Protecting Tenants Act, 2023. These amendments to the Residential Tenancies Act (RTA) are designed to strengthen tenant protections while providing clearer guidelines and responsibilities for landlords.
For landlords, tenants, and real estate investors, understanding these updates is essential. Here are some of the key changes affecting rental properties across Ontario.
Tenants Gain New Rights for Air Conditioning Units
One of the most notable changes is that tenants now have the right to install and use a window or portable air conditioner in rental units where the landlord does not already provide air conditioning.
However, this right comes with important responsibilities:
- Tenants must provide written notice to the landlord before installing the unit.
- The air conditioner must be installed safely and securely.
- The installation cannot cause damage to the rental unit or building.
- The unit must comply with applicable municipal bylaws and other legal requirements.
If the landlord is responsible for providing electricity under the tenancy agreement, they may be able to increase the rent to recover the additional electricity costs associated with the air conditioner. Any increase must be limited to the actual cost, or a reasonable estimate based on available usage information. If the air conditioner is removed or no longer used seasonally, the related increase must also be adjusted.
Stricter Rules for Renovation Evictions
Renovation-related evictions, often referred to as “renovictions,” have received increased attention under the updated rules.
When a landlord requires a tenant to leave because major repairs or renovations are needed, additional requirements may apply, including providing documentation that the work is extensive enough to require the unit to be vacant.
Landlords must also keep tenants informed throughout the process, including providing updates about when the unit is expected to be ready for re-occupancy.
Tenants who choose to exercise their right to return to the unit after renovations must be given the opportunity to move back in before the landlord rents the unit to someone else. The updated rules provide tenants with a 60-day window to exercise this right once the unit is ready.
Increased Scrutiny for Landlord’s Own Use Evictions
When a landlord or eligible family member needs to move into a rental unit, the eviction process must be handled carefully.
New provisions introduce stronger protections against bad-faith evictions. If the person who claimed they needed the unit does not actually move in within the required timeframe, the Landlord and Tenant Board may presume that the eviction was made in bad faith unless the landlord can prove otherwise.
This places greater responsibility on landlords to ensure that their stated reasons for ending a tenancy are genuine and supported by evidence.
Higher Penalties for Non-Compliance
Landlords should also be aware that maximum penalties under the Residential Tenancies Act have increased. The maximum fines are now:
- Up to $100,000 for individuals
- Up to $500,000 for corporations
These increased penalties highlight the importance of understanding landlord obligations and ensuring all actions comply with Ontario’s rental legislation.
What These Changes Mean for Landlords and Tenants
The goal of these updates is to create greater transparency and accountability within Ontario’s rental market.
For landlords, this means keeping accurate records, following proper procedures, and understanding tenant rights before taking action. For tenants, it means having clearer protections and responsibilities when it comes to their rental homes.
Whether you own an investment property, manage rental units, or are currently renting, staying informed about changes to the Residential Tenancies Act is essential.
Need guidance on how these changes may impact your rental property? Contact our team for more information.
