A second set of rental rules in Ontario are set to take effect next week, but while some landlords say it’s to bring balance to the system, tenants’ advocates say it’s the “wrong direction.”
The latest provisions are part of amendments made to the Residential Tenancies Act that were changed through two bills, Bill 60 passed last year, and Bill 97 that received Royal Assent in April.
Some rules came into effect in July, including requiring repayment plans for late rental payments to be done with an official agreement form.
But more rules are set to take effect Monday, Sept. 21, with one of the biggest changes being how much time a tenant could have to pay their rent if they missed the initial payment.
“It really is about just trying to provide some greater balance and fairness to a system,” said Tony Irwin, president and CEO of the Federation of Rental-Housing Providers of Ontario (FRPO).
Under the new rules, if a yearly or monthly tenant misses rent, a landlord can now give an N4 form that provides only a seven-day deadline to pay. The previous rules gave a 14-day deadline.
If the payment is not made within that time, the landlord can then file an L1 form with the Landlord and Tenant Board to evict them for non-payment.
The new rules also define “persistent” late payments as when a tenant doesn’t pay rent within seven days of the due date at least three separate times within six months. This can provide better record-keeping for the landlord to then take action on.
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Even though the intent of the new rules is to speed up a process, Irwin cautioned it doesn’t necessarily speed up when the Landlord and Tenant Board actually hears the case.
“Imagine the Landlord and Tenant Board is like a funnel and so if one part of the funnel has been sped up, unless the whole sort of funnel is working it’s got to follow all the way through,” Irwin said. “Otherwise, you’ll make people proceed through one part more quickly, but they’re then going to be waiting held up at another part.”
According to LTB Landlord Paralegals, an L1 application for non-payment can take about three to five months, while the paperwork to deal with persistent non-payments can take five to eight months.
Housing advocates argue the new rules create more problems for tenants.
“They’re making it easier to evict people at a time when people are unable to pay their rent,” said Daniel Tucker-Simmons, principal lawyer at Avant Law and a tenants’ rights advocate. “These aren’t bad apples that need to be dealt with more harshly, they’re people that literally can’t afford one of the basic necessities of life.”
The recent rent report by Rentals.ca and Urbanation for August showed rental prices have fallen in Ontario, but the average cost for apartments and condos sits at about $2,248 per month. A two-bedroom apartment or condo, for example, costs about $2,457 a month.
“So you’re seeing people are increasingly unable to afford their rent and so that’s increasing the number of applications for eviction,” Tucker-Simmons said. “I think it’s the wrong direction.”
Shortening the length of time for non-payment of rent or what defines “persistent” late payments aren’t the only changes. Under Bill 60, a landlord can also move themselves or a family member into their property without paying compensation if they serve an N12 notice at least 120 days before the move-in date.
As well, if a tenant wishes to bring last-minute claims to the LTB at a hearing over late payments, Bill 60 dictates they must pay 50 per cent of overdue rent before they can raise those issues. Those issues could be things like delayed or denied maintenance, illegal entry, or harassment.
“I think that’s intended to show some good faith,” said Irwin. “If you want to bring other matters forward, there needs to have been some effort made to address the prevailing issue in order to then be able to bring other issues forward.”
That requirement is “striking,” Tucker-Simmons said.
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