For decades, real estate has held its own as a prime method of investing. Within this, rental properties serve as a viable method of making income, whether it be full-time or as a side business. With that said, there is no shortage of horror stories out there regarding tenants failing to pay rent or causing havoc on the lives of their landlords. With the variety of possible headaches, one can experience as a landlord, some may question whether or not this venture is right for them. To properly get an answer to this question, it is important to know what your rights are as a landlord. This will help you ensure you get paid for your rental, as well as compensation for any damages done by your tenant. We’ve got you covered with everything you need to know about your landlord rights in Ontario.
What is the Residential Tenancies Act (RTA)?
Before diving into your Ontario landlord rights, we must first discuss The Residential Tenancies Act (RTA). This was an act created by The Government of Ontario that lays out the rights and responsibilities of landlords and tenants who rent residential properties. The RTA sets out a process and enforces them through law. If the landlord or tenant breaks these rules, they will be committing an offense. The Residential Tenancies Act covers most types of units, with both landlords and tenants being covered.
Am I a landlord?
A rental unit can come in many different forms. While the RTA covers most of these, simply renting out a space in a building won’t automatically consider you a “landlord.” Furthermore, it doesn’t automatically grant you provisions under the RTA. Generally, you are considered a landlord if you are renting out a space, such as a house, apartment, room, or boarding house. Some exceptions where the RTA may not consider you a landlord are as follows:
- You are renting seasonally or temporarily
- You share a kitchen or bathroom with a tenant within the unit
- You are renting out long-term care facility housing
- You are renting out public or non-profit housing
- You are renting out as part of a university or college campus or residence
Knowing if you qualify as a landlord under the RTA is crucial in ensuring your rights as a landlord are taken care of.
What are your rights as a landlord?
Knowing your rights as a landlord is crucial when it comes to ensuring fair treatment, as well as earning an income from being a landlord. Your rights are explained through the Residential Tenancies Act, as mentioned above. It is important to note that as a landlord, you have a plethora of responsibilities when it comes to ensuring a safe and habitable living space that abides by both the Residential Tenancies Act and the Ontario Human Rights Code. Read our article on your rights as a tenant in Ontario. In the meantime, let’s take a look at some of the most important rights you have as a landlord.
1. Collection of rent deposits
When you and a chosen tenant sign a lease or tenancy agreement, you may collect a rent deposit. The maximum amount you can ask is the same as the rent for one rental period. This is generally a month or a week. Signing a lease or tenancy agreement sometimes coincides with a rent deposit. Once you receive your deposit, you can allow your tenant to move into the rental space.
2. Collection of rent as a landlord in Ontario
On the day rent is due, you are entitled to collect it in full. This day ranges from the first of the month to the last and should be stated clearly within the rental agreement.
3. Your entry to your rental unit as a landlord
As a landlord, you may enter the rental home to complete maintenance or repairs. This is recommended if the required repairs are jeopardizing the living situation of your tenant. Alternatively, you can enter the unit to show it to new potential tenants or in an emergency. With this in mind, it is important to take note of certain entry guidelines. For example, you are unable to enter a unit before 8 a.m. or after 8 p.m. On top of this, you must give your tenant 24 hours’ notice before showing up to the unit.
4. Increasing the rent for your property as a landlord in Ontario
As a landlord, you are entitled to increase the rent of a unit once within 12 months. However, there are specific guidelines you must follow. The current rent increase guideline is capped at 2.5%. Though rare, there are some circumstances in which a landlord can increase the amount more than the cap limit. To do so, you must apply to the Landlord and Tenant Board.
5. Eviction of tenants
As a landlord, you have the right to evict a tenant. However, there are only certain situations in which you can do so. These include frequently missing rent payments or if a tenant is conducting illegal activities in your unit. On top of this, you may evict a tenant if they have caused excessive damage to a rental property. You may also evict a tenant if you wish to use the unit for your own needs, or if you wish to make extensive repairs that require a unit to be empty long-term. If you give your tenants sufficient notice of eviction and they do not agree, you have the right to file an application and have a hearing with the Landlord and Tenant Board.
Landlord Rights and Your Insurance
As a landlord, you have the right to Landlord insurance. Also known as Property Insurance, this type of policy is exactly what it sounds like. This insurance will provide you with protection that covers you from damage or financial loss on the property due to tenants. This type of insurance is quite similar to your home insurance policy, yet caters to your rental units. It will cover both the building itself, as well as the contents within it, such as appliances. Landlord Insurance is generally quite recommended, as it will cover any loss of rental income. On top of this, any liability arising from ownership of the property. If you’re in the market for Landlord Insurance, reach out to an isure broker today! We offer some of the best prices in the province, as well as customer service you can always rely on. Contact us or request a quote today!
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