Your Guide to Ontario’s Residential Tenancies Act

If you’re a landlord in Ontario, whether you’re new to the business or seasoned, the contents of Ontario’s Residential Tenancies Act will serve as a rulebook to guide you through the do’s and don’ts.

This blog covers the major points found in Ontario’s Residential Tenancies Act. Along the way, we’ll also talk about landlord responsibilities mentioned in this act—and how liability and landlord insurance tie into it all. 

Let’s get started!

A Quick Disclaimer 

This guide is not a substitute for the full version of the Ontario Residential Tenancies Act, 2006 which is available here. However, for anyone new to this act, this guide can serve as a collection of highlights from the full version and will aid you in navigating through the detailed original version.

I. Introduction — Residential Tenancies Act, 2006 

The purpose of the introduction is to establishe its purpose, which is mainly to balance the rights and responsibilities of both landlords and residential tenants. 

This portion also establishes the definition and scope of certain terms used in the Act, such as “Board,” “Ministry,” “Care home,” “Mobile home,” and so on.

You’ll find that this first section states that the Act does not apply to the following: 

• Living accommodations meant for travelling and vacationing people;
• Living accommodations wherein occupancy is conditional based on continuing employment (i.e. for work at a farm);
• Living accommodations occupied for penal or correctional purposes;
• Short-term emergency shelters; and
• Living accommodations wherein the bathroom or kitchen is shared with the owner. 

All the exemptions from the Act are located in the first part. So before continuing to read the rest of the Act, you can confirm in the first section if your residential rental is covered by the Ontario Residential Tenancies Act.  

II. Tenancy Agreements 

The second part of the Act goes into guidelines for tenant selection. Once a tenancy agreement is established, landlords are responsible for giving information regarding the rights and responsibilities of both parties (the landlord and the tenant)—as well as how to contact the Landlord and Tenant Board. This information is given to the tenant in a form approved by the Board before the tenancy begins.

This section also states that a written tenancy agreement should: 

• Have the legal name and address of the landlord;
• Be signed by the landlord and the tenant on or before the day that tenancy begins; and
• Have a copy that is given to the tenant within 21 days after the tenant signs and gives it to the landlord. 

This section also clarifies that if the landlord does not comply with the above points regarding the tenancy agreement, the tenant’s obligation to pay rent is suspended. Further guidelines and exemptions are stated in the full version of the Ontario Residential Tenancies Act. 

III. Responsibilities of Landlords 

This section of the Act details the responsibilities of landlords, which can be summed up as the following: 

• To do repairs and maintenance to comply with health, safety, and housing standards;
• To NOT withhold or interfere with vital service, care service, or food during the tenancy;
• To NOT interfere with reasonable enjoyment;
• To NOT harass, coerce, or threaten;
• To NOT change the locking system without giving the tenant replacement keys; and
• To NOT enter a rental unit unless there is an emergency or the tenant consents to the entry. 

Other guidelines on when a landlord can enter a unit (i.e. to conduct repairs, to show the unit to prospective tenants, and so on) are detailed in the full version of the Act under Part III.  

IV. Responsibilities of Tenants 

Part IV is dedicated to detailing tenant responsibilities. Essentially, tenants are responsible for the following: 

• Maintaining cleanliness of the rental premises unless it was agreed that the landlord will provide housekeeping; 
• Repairing undue damage which can be deliberate or due to negligence;
• To NOT alter the locking system of the unit without consent from the landlord;
• To give the landlord keys of altered locking systems if ordered by the Board; and
• To NOT harass, coerce, or threaten the landlord. 

V. Security of Tenure and Termination of Tenancies 

Termination of tenancy and eviction orders can only be done in accordance with the Ontario Residential Tenancies Act. 

The termination of tenancy and eviction order guidelines are detailed in section V of the Act, which includes the following:

• Guidelines on what to do with tenant property with regards to eviction or termination of tenancy; and
• Guidelines on what to do if a tenant dies.

VII. Assignment, Subletting, and Unauthorized Occupancy 

This part of the Act goes into guidelines and rules about subletting a rental unit or the tenant assigning a rental unit to another person. These would need the consent of the landlord. 

VIII. Rules Relating to Rent 

Section VIII clarifies rules on rental deposit amounts, when to increase the rent deposit, when deductions can be made on the rent deposit, and so on. It also states that any payment of rent needs to have an issued receipt from the landlord. 

Furthermore, this section provides guidelines for rental fee increases, when it can be done, and when to give notice of it. Guidelines for rent decrease are also stated in this section, as well as additional charges that are considered illegal. 

IX. Rent Freeze 

This section is a fairly recent update regarding the rent freeze period (January 1, 2021 to December 31, 2021). During this period, rent increase was generally prohibited. 

X. Suite Meters and Appointment of Utility Costs 

Section X contains guidelines for landlords that decide to install suite meters into rental units—as well as guidelines on revising agreements (i.e. rent reduction) in connection with this.

XI. Care Homes 

This section contains guidelines for care home tenants and landlords. Specific guidelines on written agreements, repairs, termination, subletting, increased charges, and so on are found in this part of the Act. 

XII. Mobile Home Parks and Land Lease Communities 

There are also specific guidelines for tenancies in mobile home parks. This section contains the responsibilities of landlords and tenants in this type of rental arrangement. It details separate guidelines for termination of tenancies and rules related to rent for this kind of setting. 

XIII. The Landlord and Tenant Board 

This section talks about the Landlord and Tenant Board that enforces the Ontario Residential Tenancies Act. 

XIV. Board Proceedings 

Learn about the guidelines and information on board proceedings regarding applications, mediation, appeal rights, hearings, and so on. 

XV. Maintenance Standards 

Prescribed maintenance standards, complaints, inspectors, and so on are discussed in this portion. 

XVI. Administration and Enforcement 

This section of the Ontario Residential Tenancies Act talks about the duties of the Minister, delegations done by the Minister, appointed investigators for offences under the Act, and so on.

XVII. Offences 

Section XVII sums up offences based on guidelines set in previous parts of the Act. 

XVIII. Regulations 

The last part of the Ontario Residential Tenancies Act details when the Lieutenant Governor in Council can make regulations or prescriptions.

Protect Your Business with Tailor-Fit Landlord Insurance 

As mentioned in Part III of the Ontario Residential Tenancies Act, a landlord has the duty to repair and maintain the rental unit. If negligence results in injuries or property damage, the landlord could be held legally liable for it. 

This is where landlord insurance comes in handy. Landlord insurance offers liability protection in such cases. Furthermore, this type of insurance protects the rental property itself and also offers income protection. 

You can count on KASE Insurance, an award-winning brokerage firm in Ontario, to provide you with personalized landlord insurance—which is one of our specialties. If you would like to learn more about this insurance type, contact us today!