Why Ontario landlord-tenant relations not doomed by Bill 184
Friday, August 07, 2020 @ 12:02 PM | By Mark Weisleder
For years I have received the same number of complaints from landlords and tenants, whether it was about landlords providing poor services or tricking tenants into terminating their leases and professional tenants who did not pay any rent, bounced cheques or damaged the property. What this said to me in total was if everyone is complaining, the law may not be so bad after all.
The current Bill 184 addressed major concerns by both landlords and tenants. Penalties were increased against individual landlords who violate the Act and further provisions were inserted to dissuade a landlord not to try and trick a tenant into vacating, whether pretending to move in with their family or a buyer. An individual can be fined up to $50,000 per occurrence and a corporation up to $250,000 per occurrence. This should also stop any further “renovictions” from taking place, where tenants are evicted for substantial renovation and then the landlord rents to new tenants before the evicted tenants can come back and exercise their right to come back themselves.
Landlords must now swear an affidavit confirming that they have not tried to use this family reason to evict anyone in the prior two years and the compensation that may be ordered paid to a tenant who was tricked can be up to 12 months’ rent. Compensation to the tenant is also now payable if a buyer is moving in on closing and if the home is being demolished, which was not the case before.
From the landlord side, the law that stated that any rent increase given without 90 days’ notice was void, even if given five years ago, is now amended so that a tenant only has one year to complain about this to reverse the rental increase. Landlords do not have to sue in small claims court for any arrears or damages if the tenant has vacated the unit but can now go to the Landlord and Tenant Board for relief.
The major issue raised by tenant advocates is that somehow landlords can now unilaterally evict tenants without a hearing, based on unreasonable offers to settle outstanding rent arrears.
Let’s take a step back here first. For many years, on average, based on one million rental units in the province of Ontario, 50,000 eviction applications were started each year, and one half of them resulted in an eviction, while the other 25,000 cases were resolved between the parties, whether through formal settlements or otherwise. When I speak to landlords I usually say “What business has a 97.5 per cent rate of collection of income?” The trick is to qualify tenants correctly so you do not end up with the 2.5 per cent.
What happened to the 25,000 evicted tenants? I never heard of overcrowded homeless shelters as a result. People find a way through hard times, whether moving in with friends or family or finding another solution.
The pandemic was clearly unforeseeable and hit a lot of people, landlords and tenants alike, very hard. When it started, I encouraged all my landlord and tenant clients to work together to find a settlement that worked for everyone, with perhaps rent reductions and/or deferrals that were manageable. Many did just that. Yet others on social media told people to just ignore paying rent because the province was not permitting evictions. What kind of advice was this? Did people really believe the province of Ontario was just going to decide to pay everyone’s rent as well as provide all the other relief? Not possible.
Under Bill 184, landlords and tenants are encouraged to still work together to find reasonable solutions, without clogging the already severely backlogged Landlord and Tenant Board. It is correct that if a tenant agrees to a settlement and then cannot pay, the landlord could apply for an eviction order. Still, the board adjudicator is still going to review the material to make sure it is complete and reasonable and the tenant still has the right to dispute any eviction order granted.
Yes, some people are going to be evicted now and will have to find an alternate solution. The main lesson to remember is we are still all in this together. Staying healthy and safe should be our main focus and landlords and tenants should treat each other with respect, patience and understanding during this very difficult time.
Mark Weisleder is a senior partner with the law firm Real Estate Lawyers.ca LLP and is also an author, newspaper columnist and keynote speaker. He has practised real estate law for over 30 years and has written best-selling industry books for homebuyers and sellers, residential landlords and real estate salespeople. Reach him at firstname.lastname@example.org.
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