The top 5 noteworthy changes to Ontario’s Rental Fairness Act:

 

  1. Should a landlord wish to give a tenant 60 days notice to vacate (which can only be done at the end of the lease term) because they, or an immediate family member, wishes to occupy the property for their own personal use the Landlord must pay to the tenant the equivalent of one month rent as compensation for the landlord exercising their right to terminate the lease for this express purpose.
  2. All privately owned rental properties in Ontario are now subject to rent control and the annual rent increase guideline as determined by the Province on an annual basis. Previous exemptions have been repealed.
  3. Effective April 30th, 2018 all landlords in Ontario must use the Province of Ontario’s new Standard Form of Lease. Failure to do so by the landlord comes with legal and financial liability. Failure to use the prescribed lease and provide a copy of the signed lease to the tenant will entitle the tenant to demand a copy of same within 21 days, failing which the tenant is entitled to withhold a maximum of one month’s rent until such time as the prescribed form of lease is provided and presented for signature. The new Standard Form of Lease states that a tenant is not legally obligated to pay a deposit of more than one months rent.
  4. A corporation cannot give a notice of termination for the purpose of occupancy by the landlord or member of the landlord’s family, even if the landlord is a sole shareholder of the corporation and the rental unit is the only asset of the corporation.
  5. In situations where the tenant has been given legal notice to vacate by the Landlord (as described above) within one year after the tenant vacates the rental unit, the designated person fails to occupy the rental unit within a reasonable period of time and the landlord lists the rental unit for rent, enters into a lease for the property with another person, or advertises the rental unit for sale the landlord is exposed to fines of up to $50,000 and a payment of compensation to the tenant who vacated.

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Read Copy of New Prescribed Lease