When searching for tenants, can you exclude people with children? When a tenant is in your premises but is not paying rent, can you evict? How do you evict a tenant? To run your business effectively, you should learn the relevant rules and regulations in the province or territory where you rent. Regardless of how you acquire the knowledge, getting informed helps you respond appropriately if and when challenging issues arise.Understand the Tenancy Legislation that Affects You
Each province and territory has its own legislation. While similarities often exist between jurisdictions, some surprising differences are worth noting.
For example, while you can collect a security deposit in most places, you cannot do so in Ontario or Quebec. In Ontario, you can collect only a rent deposit and the landlord cannot use the money collected to cover damages to the rental premises. In Quebec, landlords cannot ask for any kind of deposit. In Alberta, unless there is an agreement in writing interest on the security deposit is paid annually.
In most places, a breach of a lease over an issue not addressed directly in the provincial/territorial legislation, such as owning a pet when the lease stipulates pets are not allowed, is not grounds for eviction. In a handful of provinces, however, this breach would be grounds for eviction.
Legislation is not fixed: it changes over time. Rules are not absolute: the court or Tribunal's interpretation of the legislation determines what each rule really means to landlords and tenants.
You can learn about these rules and regulations in many ways. The Provincial and Territorial Fact Sheets are a good start. You can also look in your local area for books, booklets or guides published for new landlords. Check to make sure that the publication is not out of date.
Another option is to spend a few hours with a legal expert to discover what you need to know in order to run your business without violating rights or laws. If you decide to do this, invest in a few hours of consultation with an expert in landlord and tenant issues in the province or territory where you rent. This is a specialized area of law, so don't settle for a lawyer who primarily focuses on other areas of law. Ask for a referral to a specialist.
Privacy Laws
New privacy legislation in Canada may affect the way that you collect and keep information on prospective tenants. Be sure to check that your list of candidate questions is in compliance with these new laws. For example, you must now tell your tenants why you are collecting this information and what you plan to do with it.
Contact the Privacy Commissioner by phone at 1-800-282-1376 or by mail at 112 Kent St., Ottawa ON K1A 1H3.
Does the building you are renting comply with local and provincial bylaws? What about building codes?
In addition to the guidelines set by provincial or territorial legislation, you must also comply with provincial and municipal bylaws. These bylaws stipulate guidelines and standards for fire and building safety. Municipal bylaws also cover issues like zoning and permits. To get started, contact the main branch of your local municipality, which you can find in the blue pages of your telephone book.
Research Current Market Pricing
Before you set the rent, find out what comparable units in the area rent for by checking sources where landlords advertise. Some provinces keep rent registry databases with rent information for units over the past several years. CMHC also produces annual local Rental Market Reports for a fee.
By law, you are required to keep records and receipts for all financial transactions relating to your business. If you are not familiar with business bookkeeping, consult with an accountant. You'll need to learn how capital assets differ from expenses, and will need assistance setting up a Chart of Accounts - the ledger used to track income, expenses and other financial information - for your business.
In addition, it's important to document and track the condition of the rental premises. When a tenant moves in, complete an initial inspection of the premises and have both parties sign and keep a copy of the inspection worksheet. In some jurisdictions this is required by law and there is a standardized form to use. If your province or territory does not provide a standardized inspection template you can use the Initial Inspection Worksheet in this Guide.
Checks for Screening Tenants
· Check the applicant's credit bureau history and banking history.
· Confirm the applicant's employment situation.
· Check the applicant's tenancy history/evictions, if available.
· Check court records, if available.
· Check the applicant's references and consider contacting previous landlords going back two or three tenancies
While you will want to know as much about a rental applicant as possible, provincial and territorial human rights legislation prohibits certain factors from being considered by a landlord when choosing who he or she will rent to. These factors include race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, age, marital status, family status, handicap, or the receipt of public assistance.
Each province and territory upholds its own human rights legislation that spells out what landlords are allowed to ask prospective tenants and what they are not permitted to ask. You might think it is acceptable to ask personal questions to determine a tenant's suitability, but demanding answers as a condition of renting may contravene human rights. You cannot refuse to rent an apartment based on these conditions.
DEALING WITH PROBLEMS - LANDLORDS
While finding good tenants is significant for landlords, avoiding trouble is also a major concern. It is the landlord's responsibility to ensure avoidable problems do not occur after the unit is rented. The landlord has to ensure the rental complies with the rules and regulations for health, safety, housing and maintenance, municipal property standards and zoning bylaws, fire safety regulations and building codes. If the unit fails to meet these standards, the landlord must make necessary repairs at any point during the tenancy.Handling Problem Tenants below.
Non-payment of rent, disruptive behavior and violations of the lease agreement are tenant problems that come up from time to time. When the problems cannot be resolved the landlord may need to consider legal options. For information on how to deal with problem tenants, see
· What to Do when Tenants Don't Pay their Rent
Emergencies and Repairs
An emergency repair is required when something in the rental unit has broken and the health or safety of the tenant is in danger or the building or property is at risk until repairs can be made. By law, as the landlord you should handle and pay for emergency repairs.
At the beginning of the tenancy it is a good idea to inform the tenant that it is their responsibility to purchase contents insurance. This insurance will cover damage to the tenant's belongings resulting from a problem in the residence.
In some situations, if you are not available and repairs must be performed immediately to reduce personal risk or property damage, the tenant can authorize the repair work. Repairs can also be authorized by an order from the rental authority in your province or territory.
Emergency contact
Some provinces require that emergency contact information is posted in a visible place in the building. The emergency contact can be the landlord and/or another person.
If a tenant has authorized an emergency repair, you should ask the tenant for copies of all paperwork related to the incident. The tenant may ask the repair worker to bill you directly for the repair, or you may prefer to reimburse the tenant. In this situation, tenants should keep track of expenses, notify you upon completion of the repairs and ask for reimbursement.
If you are contacted before the repairs are completed, you may choose to take over the repairs and pay for work done up to that point. Alternatively, you may decide to let the repairs continue, choosing to reimburse the tenant for the full cost once repairs are completed.
If the tenant authorizes repairs that are not a true emergency, you can potentially refuse to repay his/her expenses. This chart can be used to gauge whether or not a repair is an
Emergency.
Emergency Repairs |
Non-Emergency Repairs |
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Regular Repairs
Attention to emergency situations, general maintenance including wear and tear and appliance repairs are all the landlord's responsibility. However, a regular or minor repair is an inconvenience, not an emergency. Tenants should not become involved in fixing minor repairs unless they have either agreed to take over these duties or they (or their guests) have damaged the premises.
If the responsible party fails to make necessary repairs to the property, the party that is not responsible for the repairs may notify the provincial or territorial authorities, sometimes referred to as the residential tenancy office. An application to the rental authority can lead to a court order for the responsible party to make necessary repairs.
If you refuse to make reasonable repairs such as fixing broken door locks or windows, the tenant may bring in a local authority. Should this situation arise, the tenant may request an inspection from a city or municipal building department. If an inspector finds that repairs are necessary, a work order will be issued to you, the landlord, listing repairs to be completed by a specified date.
Fixing Required
If a tenant pays rent for something, such as a fridge, and it
breaks, the landlord must fix it. This includes all appliances
provided with the rented premises; if the unit came with a
fridge and stove, the landlord must fix them when they break or
require maintenance. The landlord is also responsible for
maintaining and repairing common areas. These include halls,
lobbies, stairways, elevators, security systems, swimming pools,
laundry facilities, and garbage rooms.
Handling Problem Tenants
Excessive noise, especially late at night, unreasonably dirty premises and having too many people in one living space are just a few of the problems that can occur during a tenancy. When the problem relates directly to non-payment of rent, the landlord has the option of following the eviction process. When problems shift into other areas, the process becomes more challenging.
Resolution with Little Intervention or Legal Action
When asking a tenant to clean up and make repairs to an exceptionally dirty or damaged rental space, a simple verbal or written request (or politely worded warning) might get results. For actions that violate local by-laws, landlords often call the police. In these situations, a police warning or fine may convince offending tenants or neighbours to stop breaking noise, parking or garbage by-laws.
If initial attempts to resolve a conflict fail, you may need to formalize your complaint through the local rent authority. When the communication between the landlord and tenant breaks down completely, proof and witnesses are needed to demonstrate blame and establish compensation, if in order. For example, offended neighbours or other tenants might help the landlord support claims against noisy tenants.
What to Do when Tenants Don't Pay their Rent
When tenants fail to pay the rent, it is important to act quickly. When this happens you can give them a notice to move. In most provinces, you can give this notice as soon as the rent is late, in others, after a 3-day grace period.
A notice for non-payment of rent must include:
· the amount of rent that the tenant owes
· the date tenant is to move out
· a statement that says the tenant can disagree with the landlord's notice
If a tenant doesn't move or pay the rent, you can request help from the provincial or territorial rental authority to order the tenant to move. For more information, call the local office responsible for landlord and tenant issues. (See the Provincial and Territorial Fact Sheets).
Procedures and paperwork are extremely important in cases of rent non-payment. If the landlord has a valid reason to terminate a tenancy but makes a minor mistake in the paperwork, the Tribunal in the province or territory may not uphold the action.
In some provinces the tenant may apply to their provincial authority for a rent reduction in a few situations. A tenant can submit an application if you don't make repairs or improvements or fail to provide services as a condition of a rent increase. A tenant may also apply for a rent reduction if municipal taxes have been lowered or if a building service or facility is reduced or removed and the landlord does not reduce the rent.
NOTE: THIS INFORMATION IS PROVIDED BY CMHC
If you have any properties for rent, please contact Zeny Maninang.
For general information about renting in Ontario contact:
Landlord and Tenant Board
Toronto South Regional Office
79 St. Clair Avenue East, Suite 212
Toronto, Ontario
M4T 1M6
Tel.: 416-645-8080
Fax: 416-326-9838
Toll-free: 1-888-332-3234 (within Ontario)
http://www.ltb.gov.on.ca
Visit the Web site link above to see the complete listing of
regional offices.
Ordering Ontario government publications:
Government of Ontario publications are available from many
different sources. You can order in several ways:
On-line: http://pubont.stores.gov.on.ca/pool/english
Tel.: 416-326-5300
Toll-free: 1-800-668-9938
By mail: Publications Ontario , 50 Grosvenor Street, Toronto, ON
M7A 1N8
There are also two government information centres in Toronto and Ottawa — contact Publications Ontario for locations and hours of service.
For shopping in person, see the following link for locations in Toronto and Ottawa or other private distributors: http://www.publications.gov.on.ca/english/shopsite/index.html