Rent for a vacant unit is negotiated between a Landlord and a person looking to rent the vacant unit. Negotiation will also determine which services (such as hydro or parking) are included. Once the tenancy begins, rules in the Residential Tenancies Act apply. Receipts for rent are only required if the Tenant asks for them. A Tenant is entitled to a receipt for any payment or deposit provided to the Landlord, including payment for rent arrears.
A rent deposit should be lesser of one month’s rent or the amount of rent for the rental period (e.g., if it is a weekly tenancy, the deposit must be no more than one week’s rent). This deposit can only be used as rent payment for the last month (or week, if a weekly tenancy). It cannot be used for a key deposit or applied to damages.
A rent increase can be made once every 12 months, but a Landlord must give at least 90 days’ written notice for a rent increase. Guidelines for rent increases are set each year by the Ontario Government. An increase does not have to be approved by the Board, unless it is above the rent increase guidelines. For rent increases above the set guideline, the following reasons are acceptable: a significant increase in costs for municipal taxes and utilities; major repairs or renovations; and/or operating costs for security services by persons not employed by the Landlord.
If rent is not paid by the day on which it is due, the rent is considered late. If a Tenant does not pay rent on time, the Landlord can provide notice to end the tenancy early and, if the rent remains unpaid, and the Tenant does not leave, the Landlord can apply to the Board for an eviction order.
In addition, if a Tenant pays rent late on a regular basis, the Landlord may terminate the tenancy at the end of the agreement. Daily or weekly Tenants must be given 28 days’ notice and in all other cases 60 days’ notice must be provided.