Bill 97: Key Changes to Ontario’s Residential Tenancies Act

Author
Jasmine Jasani
| Published at
November 6, 2024
| Updated on
November 6, 2024
Author
Jasmine Jasani
Published at
November 6, 2024
Updated on
November 6, 2024
Learn how Ontario's Bill 97 protects tenants with new air conditioning rights, stricter eviction rules, and higher fines for bad-faith landlords.

KEY TAKEAWAYS

  1. Air Conditioning Rights: Tenants can install window or portable air conditioners, with conditions like landlord notification and safety standards.
  2. Eviction for Renovations: Landlords must provide a professional report proving that vacant possession is necessary for extensive renovations. Tenants have the right to return to the unit after repairs with 60 days' notice.
  3. Doubling of Fines: Maximum fines for non-compliance have doubled, reaching $100,000 for individuals and $500,000 for corporations.
  4. Mandatory Rent Repayment Agreements: Rent arrears agreements between landlords and tenants must use a standardized form approved by the Landlord and Tenant Board.
  5. Enforcement Pending: Bill 97 has received Royal Assent, but many provisions will take effect once proclaimed by the Lieutenant Governor.

Bill 97, also known as the Helping Homebuyers, Protecting Tenants Act, 2023, introduces crucial amendments to Ontario's Residential Tenancies Act, 2006 (RTA). These changes are designed to improve tenant protections while ensuring that landlords maintain their properties responsibly. Below, we outline the key provisions of the bill, focusing on air conditioning rights, eviction rules for renovations, and enhanced penalties for non-compliance.

1. Air Conditioning Rights for Tenants

One of the notable changes introduced by Bill 97 is the provision that allows tenants to install window or portable air conditioners in rental units where air conditioning is not provided by the landlord. However, this right comes with specific conditions:

  • Tenants must notify their landlords in writing before installation.
  • The air conditioner must be installed safely and without causing damage to the property.
  • If the landlord covers electricity, the rent may be increased to cover the extra cost of operating the air conditioner.

These rules ensure that tenants can enjoy a comfortable living environment while holding them responsible for the associated costs.

2. Eviction Rules for Renovations

Bill 97 strengthens tenant protections when landlords seek to evict tenants for extensive renovations. Under the new rules:

  • A landlord must provide a report from a qualified professional stating that the repairs or renovations require vacant possession.
  • Tenants have the right to receive 60 days' notice to re-occupy their unit after renovations are completed.
  • Landlords who fail to provide proper notice will lose the right to evict tenants for renovations.

These provisions aim to curb the misuse of renovation-based evictions, also known as "renovictions," ensuring tenants can return to their homes at the same rent after renovations.

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3. Doubling of Fines for Non-Compliance

Bill 97 significantly increases the penalties for landlords who fail to comply with the RTA, particularly in cases of bad-faith evictions. The new maximum fines are:

  • $100,000 for individuals (up from $50,000)
  • $500,000 for corporations (up from $250,000)

These higher penalties are expected to deter landlords from improperly evicting tenants, particularly under false pretenses.

4. Mandatory Rent Repayment Agreements

The bill introduces a mandatory form for rent repayment agreements when a tenant owes back rent. These agreements must now be documented using a form approved by the Landlord and Tenant Board (LTB), ensuring that both landlords and tenants have a clear, legally recognized framework for resolving rent arrears without resorting to immediate eviction.

What’s Next for Bill 97?

Although Bill 97 received Royal Assent in June 2023, parts of the legislation are not yet in force. For the amendments to take full effect, supporting regulations and proclamations from the Lieutenant Governor are required. As these provisions become enforceable, tenants and landlords should be prepared for the new rules, which aim to balance tenant protections with landlords’ responsibilities.

Conclusion

Bill 97 marks a significant step forward in protecting tenants while maintaining fairness for landlords. By addressing common issues such as air conditioning rights and the misuse of renovictions, Ontario aims to create a more balanced and transparent rental market. However, it is essential for landlords and tenants to stay informed about when these new rules will come into effect.

For updates on Bill 97, it’s recommended to monitor government proclamations and announcements regarding its implementation.

Affordable Housing
Canada
Community
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Legal
Jasmine Jasani
Growth Advisor

About the Author

Jasmine Jasani is the Growth Advisor at Openroom, specializing in strategic planning and customer retention. With a background in psychology, law, digital tools, and communication, she effectively leverages technology to drive organizational success.

As the Executive Director of Brockville’s Business Improvement Area (BIA), she spearheaded the city’s first digital gift card program and secured federal funding to support digital transformation initiatives for SMEs. Previously, at the United Nations High Commissioner for Refugees (UNHCR), Jasmine played a key role in implementing digital solutions to overcome COVID-19 challenges and streamlined intra-organizational case processing modalities.

Jasmine's belief in the power of knowledge was shaped by her personal experiences as a renter. While working as a legal assistant earlier in her career, she encountered issues with her landlord. Her boss, a partner at the firm, quickly assessed her situation and cited the relevant law, empowering her to assert her rights. This experience reinforced Jasmine's commitment to using knowledge to foster healthy and informed communities.

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