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Renting a Property in Ontario: Expert Advice for Renters

Content:

1. Plan what you are looking to rent and how much you are willing to spend

2. Know how to protect yourself

3. i) Things to know the Ontario Residential Tenancy Act
    ii) Things to know about Social Law and its application to Renters and Tenants


1. Consider what are you looking to rent, how much you are willing to spend?
Rental TypesCostExplaination
Room with shared kitchen and bathroom$The cost of the room itself is generally the cheapest way to go. In additional, the landlord generally covers the cost of heat, hydro and many other services taht certainly add up. The downside is that you must share the kitchen and bathroom. This may often lead to messiness depending on how many other people live in the property. If you are flexiable, adaptable, easier to get along with and can tolerate  the unexpected, this cheap choice just may be for you.
Room with ensuite Bathroom$$ Similar to the Room for rent, but you get your own washroom. This option is not as common being that there is at most, only own ensuite washroom in a house.
Basement Apartment$$$ Generally a basement apartment will have it's own washroom and kitchen. Some people do not like living in the basement given that it is darker, may be damper and may be more dangerous depending whether the basement is fire safe. By law, each bedroom must have a large window such that a firemen can easily climb in and out through that window. Each city has it's own regulations about whether renting a basement is legal.
Apartment$$$$ The rent in the aparment is much more expensive in addition to all the services such as water, hydro, heat and any toher services you want, you must pay for.
House$$$$$ Similar to the apartment, a house is generally for renters with family or friends.


2. How to protect yourself?
In Ontario, the Residential Tenancies Act (the RTA) came into effect on January 31, 2007 designed to protect renters and landlords. This act DOES NOT  apply to
"living accommodation whose occupant or occupants are required to share a bathroom or kitchen facility with the owner, the owner's spouse, child or parent or the spouse's child or parent, and where the owner, spouse, child or parent lives in the building in which the living accommodation is located"

This means a room rental or room with ensuite washroom does not apply, if the landlord is living in the same property. In these two rental properties, Social Law applies.

Social Law is much more vague and does not have as many restrictions. This does not mean renters are not protected and should not be discourage you from renting rooms. There are many renters who chooses the room for rent for the low cost and can comfortably live with the landlord. You do have to relate to the landlord better in this particular case.


3. Things to know about your Legal Rights

i) Things to know about the Ontario Residential Tenancy Act

Security Deposit: There are two kinds of security deposit a landlord can collect.
1. Rent Deposit: The rent deposit amount is at most, a month's rent. The deposit is only to be meant to cover the last month's rent when Rental Relationship is about to terminate. The deposit CANNOT be used to cover anything else such as damages to the property and any opther charges the landlord may consider.  Further, every 12 months, the landlord must pay the tenant interest on this deposit. The Interest amount is equivalent the Rent Raise amount.
2. Cost of the keys to the Rental Property: This deposit refundable the moment the tenant returns the keys. The deposit amount cannot be more than the cost of making the keys. For more information, refer to Rent Deposits and other charges

Rent Raises: The landlord is allowed to raise the rent every 12 months. The rent amount is a percentage set by the Ontario Government. To raise the rent, the landlord must provide 90 days advance notice.

* Referring back to the Rent Deposit where the Landlord must give the tenant interest for the rent deposit every year, there is a reason why the Rent Raise amount is equivalent to the Interest amount. Technically, if the tenant chooses to stay longer than the 12 month commitmemt and the Property Manager chooses to raise rent to the maximum possible amount, then Property Manager will not have to return the interest amount to the tenant because the interest amount is used to offset the cost of the Rent Deposit increase.

Termination: The termination conditions are complex.
If the rental property is on a weekly or daily tenancy, then the termination notice must be given atleast 28 days prior to the termination date and the termination date must be the last day of the rental period.

If the rental property is on monthly tenancy or any other kinds of tenancy, then the termination notice must be given atleast 60 days prior to the termination date and the termination date must be on the last day of the rental period.

If the contract has expired, the tenant can choose to terminate the agreement for any reason.  The landlord CANNOT terminate the agreement for any reason even after the lease has expired. Valid reasons includes a family member is moving into the reantl property, the rental property has been sold or landlord needs it for their own use. Landlords often attempt to terminate relationship if they do not like the tenant. However, not liking a tenant is not valid reason for termination. Tenants can claim termination was done in bad faith.

Disputing Termination: Some key points to know
1. After the termination notice, the tenant can still chose to dispute the notice if the tenant beleives it was done in bad faith.
2. The landlord cannot take matters in his own hands and change the locks on the rental premises or move the tenant's items out.
3. At the point of dispute, ther rental agreement continues as it is. The tenant must continue to provide rent.
4. The landlord can only apply to the Board and the Board will give the landlord a notice of hearing.

For more information, download the pdf on this site.

Rental Contract: The only condition in the rental contract is that if the rental property meets the Residential Tenancies Act, then the contract can not violate the Residential Tenancies Act. Other than that, there is no set standard to the rental contract.

ii) Things to know about Social Law and its application to Renting Properties.

If the rental property does not meet the conditions of the Residential Tenancies Act., then Social Law applies. In Social Law, it is matter of common sense and puting everything in writing into the Rental Contract. In Social Law, it is acceptable for the Landlord to lock the rental premises. It is acceptable for the Landlord to move the renter's items. One thing the tenant can do is request to agree to follow the Ontario Residential Tenancy Act. and put it in the Rental Contract. Always make sure you have a rental contract.


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