How will Bill 184 affect rentals?

On September 1, 2021, Bill 184 amendments to the Residential Tenancies Act, 2006 became effective. What was amended and how will it affect landlords and tenants? We take a look at the details.

In July 2020, the Ontario government passed bill 184, the Protecting Tenants and Strengthening Community Housing Act, which made changes to the Building Code Act, 1992, the Housing Services Act, 2011, and the Residential Tenancies Act, 2011. The changes made to the Residential Tenancies Act are of most interest to renters and landlords, and they came into effect at the beginning of September; marking a new era in landlord-tenant relations.

The bill brought in a range of new rules that affect disputes between landlords and their tenants, as well as protections for both parties. Although there were quite a number of new rules, some are more relevant and will have a greater impact on the way rentals work in Ontario.

Claims against former tenants

Until September 1, if a landlord wished to apply to the Landlord and Tenant Board to claim rent arrears, the tenant had to be still living in the property at the time of the application. Now, with the implementation of bill 184, if the tenant moved out on or after September 1, 2021, the landlord can file an application up to one year after the tenant moved out. Within the application, the landlord is now able to ask for the following things from the tenant:

  1. Rent arrears and/or compensation for use of the property.
  2. Non-sufficient funds cheque charges levied by financial institutions.
  3. Compensation for reasonable expenses incurred as a result of the tenant’s conduct
  4. Compensation for reasonable expenses incurred as a result of the tenant failing to pay utility bills
  5. Compensation for repairs to damage caused by the tenant

Claims against existing tenants

With the implantation of the new rules from bill184, landlords can now apply to the Landlord and Tenant Board to claim compensation against existing tenants for:

  1. Reasonable expenses incurred as a result of the conduct of tenants or their guests
  2. Reasonable expenses incurred as a result of the tenant failing to pay utility bills

New requirements filing eviction notices

Two common reasons for eviction are N12 and N13. An N12 is a notice to end tenancy because the landlord, a family member, or the purchaser requires the rental unit. An N13 is a notice to end the tenancy because the landlord wishes to demolish the rental unit, repair it, or convert it to another use.

Under the new legislation introduced with bill 184, if the eviction notice is based on N12 or N13, the landlord must provide details of all N12 or N13 notices given to any tenant in any rental unit in the previous two years. In addition to this, if the notice is filed based on N12, the landlord must provide an affidavit or declaration sworn by the person who is moving into the rental unit.

Tenant claims against landlords

According to the rules now enacted, a tenant can file a T5 application to claim compensation up to as much as 12 months’ rent if the landlord serves in bad faith:

  • An N12 notice to vacate the property because the landlord, a family member, or the purchaser requires the use of the property.
  • An N13 notice to vacate the property in order to carry out renovations or to demolish the property.

In addition, the new rules state that, if a tenancy I terminates due to an N13 notice, the tenant has the right to move back into the property once repairs are completed if the tenant gives the landlord written notice. In addition, if the landlord refuses to allow the tenant to move back, the tenant now has up to two years to file an N5 application – one year more than under previous rules.