Here are answers to the most common questions related to rental properties.

1. Can a landlord evict a tenant before listing a home for sale?

Under Ontario Law, the owner cannot evict or ask the tenant to move out.

 

2. What if a seller(landlord) has a buyer?

There could be two possibilities:

 

• Buyer assumes the tenant.

If so, it must be said so in the agreement.

The new property owner will have to comply with any Lease Agreement

that has not expired; before they take possession of the property.

 

• Buyer moves in on closing day.

If the original lease term has ended and the renting continues on a month-to-month basis.

The landlord must notify the tenant 60 days before closing the transaction by completing Form #12.

The tenant might also be awarded compensation for one month's rent.

 

Additional info related to rental properties:

The buyer (landlord) or his immediate family must occupy the property for at least one year—otherwise, they will face a $25,000 fine.

If the Agreement of Purchase and Sale states that the seller guarantees that the property will be vacant (not occupied by tenants), no additional forms are required to be filled out.

 

3. Can a landlord require payment for a year in advance?

No. Although, this type of payment will be legal if the potential tenant offers this condition themselves. Which should be mentioned in the contract.

 

4. By what amount can the rent be increased?

The rent can only be increased by 2.5% in 2023.

New buildings, extensions to existing buildings, and most new basement

apartments that are first used for living after November 15, 2018,

are exempt from rent regulation.

 

The law allows a landlord and tenant to negotiate a rent increase above the legal limit if the landlord:

• completed (or will do) capital works.

• provides (or will provide) a new or additional service

This increase cannot exceed the recommended rate of rent increases plus 3%.

 

5. When/under what circumstances can a landlord raise the rent?

The rent for a dwelling unit can be increased only after 12 months of:

● The latest rent increase.

● The rental start date.

A ninety day notice must be sent to the tenant.

 

6. Can you add clauses/terms of the contract to the State Standard

rental form?

Yes new clauses/terms may be added to the State Standard rental form. For example, clauses with certain conditions regarding smoking in the house or growing marijuana may be added into the rental form.

 

7. Can the tenant terminate the contract and move out earlier than the date specified in the contract?

In most cases, if the contract is signed for a particular time, the tenant

cannot leave before the end of the period except in the following circumstances:

• The tenant and landlord agree to terminate the contract.

• The tenant is transferring the tenancy to someone else.

 

Side note for landlords:

When the tenant terminates the lease agreement, the landlord is obliged to reduce his losses and try to re-rent the apartment as soon as possible. Even after, the landlord finds a new tenant and still incurs any losses from the new rentee or any other additional expenses such as, advertising the property. The landlord may sue the former tenant in the Small Claims Court to compensate for those losses.