Rent

How is the rent on a rental unit decided?

When a rental unit is vacant, a landlord and the person looking to rent the unit negotiate a rent and decide what services (such as hydro or parking) are included. Once the tenancy begins, the rules about rent and the other rules in the Residential Tenancies Act (the Act) apply.  For more information on the rent rules under the Act, see the Board’s brochure on A Guide to the Residential Tenancies Act.

How often can the rent be increased?

The landlord cannot increase the rent for a new tenant until 12 months after the tenancy started.   Then, the landlord is allowed to increase the rent once every 12 months.

How much can a landlord legally increase the rent this year?

In most cases, a landlord can only increase a tenant’s rent by the guideline set each year by the Ministry of Municipal Affairs and Housing.  Information about this year’s guideline can be found in Brochures by Topic.

Does a landlord have to notify a tenant of a rent increase?

Yes.  In order for a landlord to increase the rent, the landlord must give a written notice of rent increase to the tenant at least 90 days before the day the rent increase is to start. The notice must tell the tenant how much the new rent will be and when to begin paying the new rent.  If the tenant thinks that the new rent is too high and they do not want to pay it, this allows the tenant enough time to give the landlord proper notice of termination and move out before the rent increase begins.
 
 

Does a landlord have to give rent receipts?

Yes, if a tenant asks for them.  The Act requires a landlord to provide rent receipts, free of charge, to a tenant when the tenant asks for them. A tenant can ask for a receipt for any payment or deposit the tenant gives to the landlord, including a payment for rent arrears.  It is an offence for a landlord to fail to provide a rent receipt when one is requested by a tenant.

This rule also applies to a former tenant – The landlord must provide a former tenant with receipts if they request it, as long as the former tenant makes their request within one year of the date they moved out.

What information must be provided in a receipt?

A rent receipt must include at least the following information:

• the address of the rental unit;
• the name of the tenant(s) to whom the receipt applies;
• the amount and date for each payment received for any rent, rent deposit, arrears of rent, or any other amount paid to the landlord and shall set out what the payment was for;
• the name of the landlord; and
• the signature of the landlord or the landlord’s agent.

When is the rent considered late?

Rent is considered late if it is not paid by the day that it is due.  For example, if the rent is due on the 1st of the month and it is not paid by on that day, it is late.
 
 

If a tenant is late with their rent, what can the landlord do?

If a tenant does not pay rent on the date that it is due, the landlord can give the tenant a Notice to End a Tenancy Early for Non-payment of Rent (Form N4). This notice gives a tenant who pays rent monthly 14 days to pay the rent due or to move out. If the rent is not paid, and the tenant does not move, the landlord can make an application to the Board for an order:

• requiring the tenant to pay the rent that is owing, and
• evicting the tenant if they do not make the entire payment by a specified deadline

See the Board’s brochure on If a Tenant Does Not Pay Rent for more information.

If a tenant is often late with the rent, the landlord may give a Notice to Terminate a Tenancy at the End of Term (Form N8) for persistently paying rent late.  Daily or weekly tenants must be given 28 days notice and in all other cases, the tenant must be given 60 days notice.  In this case, the landlord can apply to the Board for an order evicting the tenant right after giving the tenant the notice.

Rent Deposits & Other Charges

Can a landlord charge a person a deposit or a fee to rent a unit?

Yes, a landlord can collect a rent deposit if it is requested on or before the day that the landlord and tenant enter into the tenancy agreement. The rent deposit cannot be more than one month's rent or the rent for one rental period, whichever is less.   For example, if rent payments are made weekly, the deposit cannot be more than one week’s rent; if rent payments are made monthly or bi-monthly, the deposit cannot be more than one month’s rent.

The rent deposit must be used for the rent for the last month before the tenancy ends.  It cannot be used for anything else, such as to pay for damages.

Can a landlord ask a tenant to pay money to update their rent deposit?

If the rent increases after a tenant has paid a rent deposit, the landlord can ask the tenant to pay an additional amount towards the rent deposit so that it is the same as the new rent.
 
If a tenant gives notice that they want to move and the landlord has not previously asked the tenant to top up the rent deposit, the landlord still has the right to ask the tenant to pay an additional amount towards the rent for the last month, so that it is the same as the current rent.

Does a landlord have to pay interest if a rent deposit is collected?

Yes, the landlord must pay the tenant interest on the rent deposit every 12 months.  The amount of interest that a landlord must pay is the same as the rent increase guideline that is in effect when the interest payment is due.  The guideline is set each year by the Ministry of Municipal Affairs and Housing.  Information about this year’s rent increase guideline can be found in the Brochures by Topic section of our website.

Note:  Landlords may deduct the amount needed to update the rent deposit (so that it equals the current rent) from the interest that is owed to the tenant.  See previous question.

If the landlord does not pay the interest owed to the tenant when it is due, the tenant can:

• deduct the interest from a future rent payment, or
• file a Tenant Application for a Rebate (Form T1) to the Board.

Can a landlord ask for a deposit for keys?

Yes, but only if:

• the deposit is refundable and,
• the amount of the deposit is not more than the expected cost of replacing the key(s) if they are not returned to the landlord.

The landlord must give the deposit back when the tenant turns in their key(s) at the end of their tenancy.

Can the landlord charge for additional or replacement keys?

The landlord can charge a tenant for additional keys that the tenant requests (for example, if the tenant wants an extra key or if the tenant has lost their key), however, the charge cannot be more than the actual cost to the landlord to get the additional keys.

If the landlord changes the locks, can the landlord charge the tenant for the new keys?

A tenant does not have to pay for new keys when the landlord decides to replace the lock with a new one, but the landlord may ask for a refundable key deposit for the new keys.

Can the landlord charge the tenant a damage deposit?

No.  A landlord cannot collect a damage deposit that they would use if there is damage done to the unit. Also, a landlord cannot use the last month’s rent deposit to cover damages in the unit. 

If the landlord finds that a tenant has damaged the unit or caused damage to the building, the landlord can give the tenant a notice and/or ask them to pay for the damages.  If they do not, the landlord can apply to have the Board determine if there are damages and what should be done about them.  For more information about the remedies available to a landlord if a tenant causes damage, see the Board’s brochure on Maintenance & Repairs.

Can a landlord charge a fee if a tenant's rent cheque is returned NSF?

If a tenant's rent cheque is returned NSF, a landlord can ask the tenant to pay for the charges the landlord has to pay to the bank, plus an administrative charge of up to $20.00.  The landlord can also claim any NSF cheque charges they paid in an application to the Board for arrears of rent.

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