Everyone needs to know that they have a place to call home
But Ontarians have not always been able to say that was the case.
Prior to 2006, Ontarians struggled with a law passed in the late 1990s that, in essence, put all of the power into the hands of landlords. The result was that families were being evicted from their apartments with very little in the way of protections.
That is why, in 2006, the McGuinty government introduced the Residential Tenancies Act, which brought a balance to the landlord-tenant relationship, ensuring the rights of both sides in any dispute.
We did this because our government believes in protecting tenants in Ontario. We understand that affordable housing is important to low and middle-income families, allowing them to thrive in their communities.
Under the Residential Tenancies Act, generally, a landlord can only increase the rent by the cost of living. However, under certain circumstances, a landlord can apply to the Landlord and Tenant Board for an extra rent increase.
Under the current regulations, landlords could apply for such a rent increase based on the Harmonized Sales Tax being added to utility costs. But our government has recognized the need to maintain Ontario’s balanced approach to landlord-tenant relations.
That is why we have proposed a change to the Residential Tenancies Act that would prevent landlords from charging the HST on utilities in addition to any cost of living increase. This will ensure that tenants do not suffer an increase in rents due to HST costs.
Our government recognizes the importance of public input, which is why our amendment is subject to a 45-day public consultation period.
Our aim is to protect tenants. But we still need to ensure a fair balance in the landlord-tenant relationship. This amendment will do that, because landlords will be able to see HST costs for utilities reflected in the annual cost of living rent adjustment, and in the rents they could set for new tenants when units become available.
For more information on the rules on rent increases, contact my Constituency Office at 416-630-0080.