Getting Started.

Finding the Right Tenant 

Developing a strong tenant relationship begins with a thorough screening process. Use a rental application form with a release to verify references, employment, and credit history. Be mindful of Ontario Human Rights Code guidelines—questions about family status, gender, religion, or health are prohibited. 

Once you’ve selected a tenant, formalize the arrangement with a standardized rental agreement, introduced in 2018, to ensure clarity on rent, included amenities, and responsibilities. 

Rights and Responsibilities of Rental Housing Providers 

1. Maintain Habitable Units 
   Ensure units meet health, safety, and maintenance standards. Repairs for critical issues (e.g., faulty wiring, broken windows) should be addressed promptly. 

2. Provide Notice for Entry 
   Except in emergencies, give 24 hours’ written notice before entering a unit for inspections or repairs. 

3. Rent Setting and Increases 
   You can set initial rent freely, but annual increases must follow the Rent Increase Guideline, with exceptions for significant renovations or repairs approved by the Landlord and Tenant Board (LTB). Units first occupied after November 15, 2018, are exempt from rent control. 

4. Resolve Issues Through Mediation 
   For disputes, mediation is a faster, less formal alternative to LTB hearings, helping both parties reach equitable solutions. 

 How Rent Control Works 

• Most rental units in Ontario are subject to rent control, limiting annual rent increases to the Rent Increase Guideline. 

• Exemptions include new units first occupied after November 15, 2018. 

• Providers must give 90 days’ written notice for rent increases and can only raise rent once per year. 

Ending a Tenancy 

1. Tenant Misconduct 
   Tenancy may be terminated for unpaid rent, repeated late payments, illegal activity, or significant property damage. Providers are encouraged to negotiate repayment agreements before pursuing eviction. 

2. Landlord Use or Sale of Unit 
   Providers can end a tenancy if they or a family member need the unit or if the property is sold and the buyer intends to occupy it. 

3. Renovations or Demolitions 
   Tenants must be given a right of first refusal to return after renovations. Failure to comply can result in compensation claims for up to 12 months’ rent, moving costs, and other expenses. 

4. Good Faith Requirement 
   Notices to end tenancies must be in good faith. The LTB can penalize bad-faith evictions with financial compensation for tenants. 

Best Practices 

• Maintain Open Communication: Build trust with tenants by addressing concerns proactively. 

• Follow Legal Processes: Ensure compliance with notice periods and LTB regulations to avoid disputes. 

• Plan for Maintenance: Budget for repairs and upgrades to keep units compliant and attractive. Whenever possible, plan to conduct repairs and maintenance that are not essential to the safety of the residents, unit, or building when the unit is vacant. This avoids potential hardship for the residents and removes a potential source of disagreement, making the process smoother for providers.