Ontario is in the midst of a housing crisis, with skyrocketing rents, dwindling supply, and an overloaded Landlord and Tenant Board (LTB) system. Bold action is required to stabilize the market, protect landlords, and ensure tenants have access to fair, affordable housing. By adopting key provisions from British Columbia’s Residential Tenancy Act, Ontario has the opportunity to create a rental framework that fosters investment, reduces disputes, and streamlines processes for all parties involved. Small and medium-sized landlords play a key role in Canada's rental housing market. Landlords must be protected in order for Canadians to get out of the current housing crisis and encourage investment into our communities, and in turn providing more rental units for tenants at more affordable prices.

#1 Streamlining Nonpayment Evictions with Direct Requests

In BC, there is a process called direct request that only can be used for nonpayment of rent and for landlords not returning deposits (which we will get into later in the article). Direct request bypasses all dispute resolution hearings, and the tenant is not allowed to dispute the findings. The process can be initiated 5 days after serving the tenant a 10 Day Notice of Eviction (The BC equivalent to an N4). The landlord must only prove that both the eviction notices and the notice of direct request was served to the tenant. In most cases, tenants must agree to receive notices by email. Direct request hearings are usually heard within 2-4 weeks of filing and drastically expedite the eviction process compared to Ontario. Here is an excerpt from the residential tenancy Board website;

‍“Direct requests are different than a participatory hearing as the adjudicator relies only on the applicant's written submission. Direct requests have no hearing to attend and verbal testimony is not included.

‍‍That means your application needs to be filled out completely and clearly.‍ With a direct request, a tenant or landlord submits the applicable application form and evidence to the Residential Tenancy Branch (RTB). An adjudicator reviews the written evidence, makes a decision and sends the decision to both parties. 

With a direct request, your issue is resolved faster, however it must fit within specific circumstances.”

By adapting to this model, tenants would no longer be able to go months, or even years without paying, which is all too common in Ontario. The findings are given a brief 2-day review period, and after, the Order of Possession can be filed in BC Supreme Court and a court approved bailiff can remove the tenant usually within 2 weeks. Costs of eviction and enforcement can be passed on to the tenant in the form of a monetary order, which can in turn, be enforced by the court by either asset seizure or wage garnishment. This is drastically needed to protect Ontario landlords from professional tenants who feel empowered to not pay their lawfully owed rent. Direct request adaption must be given priority to protect landlords and encourage investment by landlords into providing more rental homes.

Back in mid-2024, an Ontario Housing Provider started a petition for "Automatic Eviction Orders" when there are cases of non-payment of residential rent. After 42,185 signatures later, it fell silent. The aim was going after something similar to BC. While the momentum was strong, there lacked progress afterwards in Ontario in moving this forward.

#2 Hold Tenants Accountable with Late Payment Policies

It is all too common in Ontario for tenants to pay late, because there is no system in place to prevent them from doing so. However, landlords cannot pay their mortgage or property taxes late. The cost of ownership for landlords is drastically increasing by way of high cost of housing, interest rates, increases to property taxes, home insurance and more. Establishing a legal framework in Ontario that makes fiscal responsibility a requirement for tenants would benefit both landlords and tenants seeking affordable, or even available rental housing. The Residential tenancy Act in BC allows for a tenant to be served a 30-day notice of eviction for repeated late payment of rent. This provision of the Act is enforceable if the tenant is late paying 3 separate times. BC’s three-strikes rule prevents chronic late payments, ensuring landlords can meet their obligations. This policy change not only supports landlords but encourages tenants to maintain timely payments, promoting overall housing stability.

#3 Late Fees

In BC, as an alternative incentive for tenants to pay their rent on time, a late fee of $25 is allowed to be charged for any late payment. This is more of a deterrent then a punishment and should be introduced in Ontario to encourage tenants to pay their rent on time. Imagine consistently receiving rent weeks late while juggling mortgage and maintenance costs. A small $25 fee encourages timely payments, reducing the risk of escalating late payments into costly evictions—a win-win for both parties.

#4 Protect Both Parties with Mandatory Condition Inspections

In BC, at the start of every residential tenancy, both the landlord and tenant must complete a move in inspection (Form RTB-27). This generally happens on move in day right before handing over the keys. The inspection form covers all aspects regarding the condition of the property including cleanliness, working appliances, and general state of repair. Without a move in inspection signed by both parties, both landlord and tenants have no recourse to the RTB (Residential Tenancy Branch) to make a claim against one another. 

At the end of any tenancy, the condition inspection is filled out again, tenants are legally required to return the property in the same condition that they received it, less acceptable wear and tear.

By incorporating this into Ontario tenancy laws, both tenants and landlords are protected. Tenants will be empowered by knowing the property they are renting is clean and in a good state of repair. There is a section of the condition inspection for the tenant to make note of any maintenance issues, and any promised repairs by the landlord must be in writing. Landlords will face less instances of having their properties returned damaged or dirty, and in turn, will free up valuable resources at the LTB to deal with more severe issues, such as evictions for nonpayment.

This model will only work if the Ontario government incorporates a security deposit framework, for if a dispute arises, landlords may deduct from the security/damage deposit. In BC, if a landlord has been found by the RTB to have illegally made a deduction, then the landlord is required to pay the tenant double the amount of the deposit. This prevents bad actors on the landlord side from abusing or wrongfully withholding deposits.

Without a clear record, disputes over damages often escalate, straining the LTB’s resources.

#5 Reduce Moving Costs and Protect Landlords with Security Deposit Reform

By establishing that landlords may collect a damage/security deposit, everyone benefits. A tenants cost to move into a new rental unit becomes cheaper, as the last months rent deposit would be replaced with a damage deposit. Currently in BC, a landlord is only allowed to charge a ½ months rent for damage, and an additional ½ months rent for a tenant with a pet. This change reduces moving costs for tenants.

Landlords will benefit from the security of having available funds should a tenant damage property, return it unclean, or break a lease. Any deposit deductions must be either agreed upon by both parties, or the landlord has 14 days to apply to the RTB to make a legal deduction. Any claim must be accompanied by proof, receipts, and as mentioned above, the condition inspection. This is critical to prevent property damage and encourage more landlords to provide rental housing.

The LTB benefits from having increased resources and a lighter caseload with L10 and L2 applications being settled directly between landlord and tenant.

By capping damage deposits at ½ a month's rent, BC minimizes financial strain on tenants while giving landlords a safety net.

#6 Ensure Fairness with Liquidated Damages for Breaking a Lease

In Ontario, landlords face out-of-pocket costs when tenants break leases, with no mechanism to recover them. While there are legal provisions in place, they need to be improved. Tenants must be accountable to the terms of their lease and a landlord should be allowed to recoup any costs associated with finding a new tenant if their current tenant breaks their lease. In BC, landlords are allowed to charge “liquidated damages” which vary from lease to lease. These terms are enforceable through RTB so long as they are deemed reasonable. BC laws are similar to Ontario in that if a tenant requests to break a lease, the landlord must make every commercial effort available to find a new tenant. If a tenant leaves early, landlords often pay one month’s rent in realtor fees, which could be reclaimed under BC’s model. In fact, currently it is expressly stated that a landlord can not go after a tenant for these costs, which needs to change to encourage tenant responsibility.

#7 Streamline Justice with Final and Enforceable LTB Orders

Professional tenants in Ontario know how to play the system, causing delays and further hardships for landlords. When a tenant disputes and order, the LTB will then schedule new hearings, reviews, and other delays which will take months all while the landlord suffers.  In BC, RTB orders are final and enforceable. Tenants cannot claim illness, ignorance to tenancy laws, or financial hardships. Tenants in BC still have avenues to appeal if landlords act illegally, ensuring a balanced approach.

Just look at what happens when there are professional tenants that know how to game the system. There is an example of a tenant who victimized 4 landlords with nonpayment of rent for nearly $100,000 with no recourse.

Ontario’s rental market is at a tipping point. Without meaningful reform, the housing crisis will worsen, leaving both landlords and tenants in untenable situations. Policymakers have an opportunity to implement proven solutions that support investment, ensure fairness, and expand housing supply. Adopting BC’s tenancy innovations is not just a recommendation – it’s a necessity. Ontario lawmakers must prioritize tenancy reform now to address the housing crisis, protect landlords, and deliver affordable rental solutions for families across the province.

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Disclaimer:

This is an Opinion article submitted by a member of the Openroom community. The author's opinions are not necessarily representative of Openroom. Openroom has an objective to publish the voices of the rental ecosystem to ensure there is dialogue amongst all.

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