Team Proppa

Landlord Rights & Responsibilities

Can a landlord stop me from having a pet?

Short answer: no. Despite what many landlords and renters believe landlords cannot stop a tenant in Ontario from having pets. That’s according to section 14 of the Residential Tenancies Act.
 
While you might have come across leases with a ‘no pets’ clause, these are neither legal nor enforceable by law. Similarly, practices such as landlords charging a ‘pet deposit’ to cover any damage by pets are similarly not legal. Nor can a landlord legally refuse to rent properties to anybody with a pet.
 
That does not mean that your pets have free rein. Landlords can still be protected under the law if they have an allergy to your pet or your pet causes harassment to the landlord or other tenants by excessive barking, aggression, or damage to the property. In such cases, landlords can ask you to move out of the property. By the same token, tenants too are protected against pets owned by the landlord. While landlords cannot legally ban you from having a pet, they can regulate where your pet goes to the bathroom or gets walked. 
 
Tenants who own pets, however, have to abide by provincial and municipal by-laws that place restrictions on pet ownership by those renting property. These can be very specific. For example, London’s Animal Control bylaw says that you cannot have more than five cats in one home or apartment unit as well as separate rules for reptiles and birds. Another rule designed for dogs required that all dogs be registered for dog licenses and limits the number of dogs allowed in a home or apartment unit to three.

Landlord Rights & Responsibilities

What can I do if my landlord refuses to make repairs?

The law is quite clear on this. Ontario’s Residential Tenancies Act requires landlords to keep the property in good condition and repair items that go through normal wear and tear such as plumbing, HVAC, electrical systems, large appliances such as stoves and laundry machines, windows, locks, flooring and common areas such as lobbies, pools, gyms, and patios. Landlords are supposed to keep such items in good working order. Although the law makes it the landlord’s responsibility to repair such items, it does not exactly specify a timeframe within which to effect such repairs. The Act simply states that landlords have to be reasonable about the time they take to effect repairs.
 
However, landlords are not supposed to repair tenants’ own belongings such as furniture and electronics nor insure them against theft or damage. That is covered by tenant insurance. Landlords are also not liable to repair items that are damaged by the tenant’s own negligence or malice, even if those damages take place in a common area. Refusal by tenants to effect such repairs can be grounds for eviction.
 
But what if the landlord refuses to repair or maintain items he or she is supposed to?  If the landlord refuses to effect repairs within a reasonable time or has a history of refusing to keep up their end of the bargain, you can ask a city building inspector to come and look at the problem. Keep the reports that the inspector gives you. It’s generally a bad idea to refuse to pay rent in such cases since the landlord can legally begin eviction proceedings against tenants who refuse to pay rent. In such cases, tenants can go to the Landlord and Tenant Board which can order a landlord to do either one of the following: compensate the tenant, temporarily reduce the rent, order the landlord to repair or replace the item, reimburse the tenant to repair the item themselves or allow the tenant to break the lease early if the tenant wants to or if the property is deemed to be unsafe.

Landlord Rights & Responsibilities

How often can landlords in Ontario raise the rent, and by how much?

Negotiating rent hikes can be a complicated matter. In Ontario, the frequency with which a landlord can increase the rent is limited to only once every 12 months for as long as you remain in that property. However, before effecting a rent hike, the landlord has to give you notice of at least 90 days. If not, you are not obligated to pay the increase, but you still, have to pay the rent that you were before the hike.
 
How much a landlord can hike the rent each time is limited by the provincial government. In Ontario, rental hikes have been capped at 2.5 percent for 2023. This cap applies to most of the approximately 1.4 million rental households in the province that are covered by the Residential Tenancies Act and cover any increases in rent between January and December 2023. Any hike above the 2.5 percent mark cannot go into effect unless approved by the Landlord and Tenant Board. Such hikes above the cap can be approved by the board only in certain circumstances such as after the completion of eligible capital work on the property. Tenants who feel that their rent has been improperly raised can apply to the Landlord and Tenant Board to request a correction.
 
The cap does not apply in the cases of rental units occupied for the first time after November 15, 2018, vacant residential units, community housing, long-term care homes, or commercial properties.

Title & Deeds

What does title insurance do?

A ‘title’ is a legal term describing the right of ownership. When you buy a home, the ‘title’ is transferred to you, the new homeowner. So what is title insurance? And why would a homeowner consider buying it?
Put simply, title insurance is a product that in exchange for a one-time fee protects you against challenges to your ownership of the property that might emerge later on. Some of these challenges can be things that your lawyers cannot cover such as fraud, where somebody tries to take your title through fraud or forgery, encroachments; where a neighbor builds something partly on land that you own, easements, where the property is later found not to comply with zoning by-laws or a previous owner of the title still having claim to the property.  
Title insurance, which can be bought at any time after the purchase of a property, sets out to cover you depending on the maximum coverage laid out in the policy and may also cover legal expenses that you can incur in restoring your property’s title.

Home Inspection

Do you need a home inspection?

A home examination before buying a home is highly recommended to get a clearer picture of what you are purchasing. Although a pre-purchase inspection is not required for getting a mortgage loan, it can help protect you against costs and headaches later on.
A pre-purchase home inspection examines the condition of the home and is recommended in all Canadian provinces whether you are buying a 5-year-old or a 50-year-old property. An inspection report contains information such as detailed observations on the condition of the property, details on defects, necessary work and water damage, and photos of the property. An inspection takes place after you have submitted an offer and it has been accepted by the sellers of the property.  If dealing with a mortgage, it’s a good idea to look for a list of building inspectors in the area while waiting for pre-approval. A pre-purchase inspection costs between $500 and $600.
For the buyer, a pre-purchase inspection can help dodge a bullet if the inspector discovers serious problems with the property. Or if the buyer agrees to undertake necessary works on the property, it can also allow the buyer to try to negotiate a lower price for the property.

First-time buyers

How much is a minimum down payment?

Buying property for the first time? The first question that would come to mind is what is the minimum down payment that you would need to put down to buy a property?

The answer; depends on the value of the property you are looking to buy. If you are looking to buy a property for $500,000 or less you can put down a minimum of 5%. If the property is worth between $500,000 and $999,999, then the minimum down payment you need to come up with would be 5% on the first $500,000 and 10% for the rest of the purchase price. If the property is worth $1 million or more, then the minimum down payment needed is 20%.

Mortgages

Who pays for your mortgage insurance?

Put simply, mortgage insurance is supposed to protect your mortgage lender in case you cannot make your mortgage payments. So who has to get mortgage insurance, and more importantly, who pays for it?
 
In Canada, mortgages with a down payment of less than 20% are required by the government’s Office of the Superintendent of Financial Institutions (OSFI) to also buy mortgage insurance. The idea is that the smaller the down payment, the higher the risk that a borrower is not able to repay their loan. However, even if you do come up with a 20% down payment, your lender may still ask you to buy mortgage insurance. This is the case if you have a poor credit history or are self-employed without a regular source of income to cover your mortgage payments. This system works in favor of borrowers as well. Having an insured mortgage means that even people struggling to save up to put 20% down can buy a property with a smaller down payment. For instance, to buy a property of $500,000 or less, an insured mortgage means that you can get away with coming up with a minimum down payment of 5%. Mortgage insurance does not apply to properties worth more than $1 million.
 
So if the mortgage insurance is to protect your lender against the risk of you defaulting on your mortgage payments, is the lender to pay for it? Technically, yes and no. On paper, it is your lender who will be the one paying for the mortgage insurance but usually, these costs are passed on to you either through adding it to your regular mortgage payments or having you pay a lump-sum upfront.