Amendments to the RTA effective September 1, 2021

Bill 184 introduced some important amendments to the Residential Tenancies Act. A number of them took effect on July 21, 2020. The remainder of the amendments will take effect on September 1, 2021 (date of proclamation by the Lieutenant Governor).

I will highlight two important items (because of some confusion that I noticed online), and then I will share a general summary of upcoming changes, published by the LTB.

1. Two nuances that seem to cause some confusion:

1)

Post-Tenancy Landlord Applications:

Upon proclamation on September 1, 2021, landlords will have up to 1 year to file with the LTB against their former tenants (instead of having 2 years to file with the Small Claims Court, currently).

However, if the tenant has already vacated before September 1, 2021, the landlord's recourse is still with the SCC, not with the LTB. I.e. if a tenant has already vacated, the landlord cannot just wait till September 1, 2021 in order to change the legal forum from the SCC to the LTB. At least, that appears to be what subsections (b) of the relevant sections in the RTA are saying.

See, for example, RTA subsection 89(1)(b) about undue damage (you will see similar wording in other relevant sections of the RTA):

2)

Limitation Periods for T5  Applications for Bad Faith:

Limitation period for a T5 application is still 1 year, *except* for T5 applications specifically for failure to afford the tenant the right of first refusal (i.e. the right to move back into the same unit paying the same rent after an N13 eviction for Reason 2 (extensive repairs or renovations)).

(Compare RTA subsection 57(2) about general limitation period for a T5 for bad faith (1 year, unchanged) and RTA subsection 57.1(2) about limitation period for the right of first refusal, which will increase from 1 year to 2 years on September 1, 2021.)

2. A summary by the LTB:

"This is a summary of the significant amendments which take effect on September 1, 2021. For the actual wording of the amendments, refer to the section of the RTA cited beside the description, e.g. s.57(3).

Landlord claims against former tenants

Currently, the LTB can only consider an application made by the landlord claiming compensation if the tenant is still living in the rental unit. Claims made after the tenant has moved out must be made at Ontario Small Claims Court.

As a result of the amendments to the RTA, a landlord will be able to claim compensation up to one year after the date the tenant moved out for the following reasons:

1. Rent arrears and/or compensation for the use of the rental unit. s.87(1) & s.87(3)
   
   
2. NSF cheque charges. s.87(5)
   
   
3. Compensation for reasonable out-of-pocket expenses a landlord has incurred as a result of conduct by the tenant, their guests or occupants that has substantially interfered with the landlord’s reasonable enjoyment or another lawful right, privilege or interest of the landlord. The landlord must prove that they incurred the expense as a result of the tenant’s conduct. s.88.1
   
   
4. Compensation for expenses the landlord has incurred as a result of the tenant’s failure to pay utilities. s. 88.2
   
   
5. Compensation to replace or repair undue damage caused by a tenant, guest or occupant. s. 89(1)

Applications and notices of hearing naming former tenants must be served by the landlord, unlike most applications where the LTB serves respondents. Only specified methods of service by the landlord are permitted, but LTB has the authority to permit other methods in its Rules of Procedure. s.189.0.1 & s. 191(1.01)

Tenant claims against landlords

1. Tenants filing a T5 application claiming that the landlord served a N12 notice (for own use/purchaser’s own use) in bad faith and failed to move into the unit after the tenant vacated, will be able to claim general damages equivalent to as much as 12 months’ rent. This is in addition to the remedies a tenant can seek currently. s.57(3)
   
   
2. Tenants filing a T5 application claiming that the landlord served an N13 notice (for demolition/conversion/renovation) in bad faith and failed to demolish or renovate after the tenant vacated, will be able to claim general damages equivalent to as much as 12 months’ rent. This is in addition to the remedies a tenant can seek currently. s.57(3)
   
   
3. If a tenancy is terminated because the landlord intends to do major repairs (N13 notice), the tenant has the right to move back when the repairs are completed if they have given the landlord written notice. If the landlord does not allow the tenant to move back in, the tenant can file a T5 application up to 2 years after they moved out. Currently, the tenant only has 1 year to file the application. s. 57.1(2)

Landlord claims against tenants

1. A landlord can claim compensation for reasonable out-of-pocket expenses they have incurred as a result of conduct by the tenant, their guests or occupants that has substantially interfered with the landlord’s reasonable enjoyment or another lawful right, privilege or interest of the landlord. The landlord must prove that they incurred the expense as a result of the tenant’s conduct. s.88.1
   
   
2. A landlord can claim for compensation for expenses they have incurred as a result of the tenant’s failure to pay utilities. Currently, unpaid utility claims must be made at Small Claims Court. s. 88.2

Requirements for landlords filing for eviction based on an N12 or N13

1. A landlord filing an L2 eviction application based on an N12: Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit, must provide an affidavit or declaration sworn by the person intending to move into the unit when they file the application. Currently, the affidavit or declaration can be submitted at a hearing. s. 71.1 (1)
   
   
2. A landlord filing an L2 eviction application based on an N12: Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit or an N13: Notice to End your Tenancy Because the Landlord Wants to Demolish the Rental Unit, Repair it or Convert it to Another Use, must provide details about all previous N12 or N13 notices given to any tenant for any rental unit in the last 2 years. s. 71.1 (3)"

https://tribunalsontario.ca/documents/ltb/consultations/LTB_Backgrounder_Upcoming_Amendments_to_the_Residential_Tenancies_Act_EN.html

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