RULES ABOUT RENT FOR AN EXISTING TENANT

Timing of rent increases When a tenant already lives in a unit, the rent can only be increased if at least 12 months have passed since the last increase. The landlord must give the tenant at least 90 days written notice of a rent increase in the proper form.

The rent control guideline The rent can be increased by the guideline amount set each year by the Minister of Municipal Affairs and Housing. The rent control guideline for 1998 is three per cent.

Rent increases above the guideline The rent can be increased by more than the guideline if:

• There is an order from the Tribunal because the landlord has applied to the Tribunal for an increase in rent to cover increased municipal taxes and charges, or utility bills.
• There is an order from the Tribunal because the landlord has applied for an increase due to major renovations or repairs, the purchase of new equipment or the addition of security services. This kind of increase cannot be more than four per cent.
• Maximum rent applies to your unit. Call the Tribunal for information.
  

• When a landlord applies to the Tribunal for an increase above the guideline, a tenant may choose to pay the higher rent set out in the notice of rent increase while they are waiting for an order from the Tribunal.
• A landlord and tenant can agree to add parking at any time during the year without applying to the Tribunal. This applies to certain other services such as cable and lockers.
  Agreeing to increase the rent above the guideline
• A landlord and tenant can negotiate a new rent if they agree that the landlord will carry out major renovations or repairs, buy new equipment or if the landlord will add a new service. The rent increase agreed to cannot be any more than the guideline plus four per cent.
• There is a five-day cooling off period when the tenant can change their minds.
• The agreement must be on the approved form which is available from the Tribunal offices.
• If the tenant does not agree to the increase the landlord can make an application to the Tribunal.

  Rent reductions

• A tenant can apply to the Tribunal for a rent reduction if:
  • The landlord does not make repairs or improvements that were agreed to in an agreement to increase the rent.
  • The landlord does not provide a service that was agreed to in an agreement to increase the rent.
    

  
  

  • If a service or facility is reduced or removed and the landlord did not reduce the rent.
• A tenant can also apply if maintenance standards are not adequate.
• If there is a decrease in municipal taxes and charges, the rent will be automatically reduced..

  Rent receipts

• If a tenant asks for a receipt for a rent payment, rent deposit or any other payment, the landlord must provide the receipt to the tenant free of charge.

  Post-dated cheques

• A landlord cannot require a tenant to provide post-dated cheques for the rent.
  Illegal rents
• A tenant can apply to the Tribunal for a rent rebate, if they believe the landlord charged an illegal rent.

  FOR A NEW TENANT
  
  Rent limits

• When a unit is being rented to a new tenant, the landlord and the new tenant negotiate the amount of the rent. They also can negotiate the services that are included in the rent, such as parking and hydro.
• Once the new tenant is in the rental unit, the annual rent control guideline takes effect. The rent can only be increased if at least 12 months have passed since the last increase. The landlord must give the tenant at least 90 days written notice of a rent increase in the proper form. The Tribunal has copies of this form for landlords to use.

  Illegal charges

• It is illegal for a landlord to require a new tenant to pay an application fee or special charge in order to rent a unit.
• It is also illegal to require a new tenant to buy anything, such as drapes or furnishings, in order to rent a unit.
  Rent deposit
• At the start of a tenancy, a landlord may collect from a tenant one month's rent as a deposit (one week's rent for a weekly tenancy).
• The deposit can only be used for the rent for the last month (week) of the tenancy, and the landlord must pay the tenant six per cent interest on the deposit each year.
• The amount of the rent deposit can increase each year by the amount that the rent increases.
  
  Additional Information
• The Ontario Rental Housing Tribunal provides information to the public through a network of 20 local offices across Ontario.
• The Tribunal can be reached 24 hours a day by calling toll-free
  1-888-332-3234.
• A copy of the TPA can be ordered from Publications Ontario by telephoning toll-free 1-800-668 9938.
• A copy of the TPA can also be obtained by visiting the Ontario Government Website at www.gov.on.ca.