In Ontario, the Residential Tenancies Act (“RTA”) is the primary piece of legislation that governs relationships between landlords and tenants in many rental housing situations (there are exceptions). Among other things, the RTA deals with common issues that may arise during the course of the landlord-tenant relationship including: rent, termination of tenancy, maintenance issues, etc.
As we’re entering rent increase season for much of Ontario’s rental housing market, today’s post answers the question what is rent (really) in Ontario?
When most of us think of rent, we think simply of the amount of money a person pays to occupy a rental premises (i.e. to live in one’s rented space) but in fact, the RTA defines rent in a very expansive way that not only includes the amount one pays for the rental unit but can include amounts of money which are charged separately to a tenant for other privileges associated with living in a rental premises.
For context, let’s take a look at the definition in the RTA:
“rent” includes the amount of any consideration paid or given or required to be paid or given by or on behalf of a tenant to a landlord or the landlord’s agent for the right to occupy a rental unit and for any services and facilities and any privilege, accommodation or thing that the landlord provides for the tenant in respect of the occupancy of the rental unit, whether or not a separate charge is made for services and facilities or for the privilege, accommodation or thing, but “rent” does not include,
(a) an amount paid by a tenant to a landlord to reimburse the landlord for property taxes paid by the landlord with respect to a mobile home or a land lease home owned by a tenant, or
(b) an amount that a landlord charges a tenant of a rental unit in a care home for care services or meals;
The definition of rent in the RTA can therefore include things like parking or storage, irrespective of whether a tenant pays the landlord separately for those privileges. This means that when a Landlord serves a Notice of Rent Increase as required under the RTA, the percentage increase could also apply not only to a Tenant’s base rent paid each month for their rental unit but also to any parking, storage or other “tenant-privilege” fees.
Key Takeaways
- Read your Tenancy Agreement: Understand how the lease defines rent, and what you can expect to be charged when your rent is increased legally. If you don’t understand something, it’s best to ask your Landlord for clarification before you sign.
- Know your rights: Understand the RTA and what it means for both tenants and landlords in their relationship with one another.
- Get help if you need it: if you have questions about your rights as a tenant or landlord, free legal help may be available. In any event, when confusion around residential tenancy matters arises, it’s important to speak with an experienced legal professional.
