April 8th - 2007

New act governs tenanted-properties

The Residential Tenancies Act (the RTA) came into effect on January 31, 2007.

The Residential Tenancies Act (the RTA) came into effect on January 31, 2007. The RTA sets the rules for most residential rental housing in Ontario and replaces the previous legislation, known as the Tenant Protection Act, (TPA).
 
Several changes to rules governing rents and landlord-tenant relationships were made under the new legislation. Some of the key changes include:

  • The annual rent increase guideline will be based on the Ontario Consumer Price Index, which will be the rate of inflation for the year running from June to May.
  • Landlords will be able to inspect rental units for maintenance problems, with 24 hours notice.
  • Landlords will have more remedies to deal with a tenant if he/she is causing willful and/or excessive damage in a rental unit or building. The new remedies will cut the eviction process approximately in half.
  • Improvements to processes under the Landlord and Tenant Board (formerly known as the Ontario Rental Housing Tribunal)
  • Interest paid to tenants on last month’s rent deposit will be the same as the Consumer Price Inde

To avoid any problems with illegal entry, REALTORS® should have some knowledge of the RTA, particularly the sections that relate to entering a tenanted unit. While it may not be the traditional real estate transaction that the majority of REALTORS® deal with, the increasing number of condominium properties on the market has resulted in more tenant occupied listings.
 
According to the Act, if the unit is listed for sale, a landlord can enter to allow a potential purchaser, insurer or lender to view it between 8 a.m. and 8 p.m., but only if 24 hours written notice is given to the tenant. Also, if a notice of termination has been given by either the landlord or tenant, or there is an agreement to terminate the tenancy, and the landlord wants to show the unit to a potential new tenant, you may only enter between 8 a.m. and 8 p.m. Written notice is not required by law, but the landlord must try to tell the tenant before entering the unit.
 
View the new RTA in its entirety at http://www.e-laws.gov.on.ca/DBlaws/Statutes/English/06r17_e.htm.

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Ontario Real Estate Association

Jean-Adrien Delicano

Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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