Summary#

Bill 23, the Rent Stabilization Act, 2021, would amend Ontario’s Residential Tenancies Act, 2006 and legal aid laws. Its stated goal is to stabilize rent. It would set rules for rent charged to new tenants, create a rent registry, and change some landlord duties and tenant remedies.

• Landlords would have to file information about each rental unit with the Landlord and Tenant Board (LTB), and update rent information when it changes. The Board would run the registry.
• The public could see each listed unit’s address, rent and rent-change dates. Certain people connected to a unit could request its other registry information.
• A tenant could apply to the LTB if a landlord failed to complete work required by a settlement or prior order. The Board could impose a fine of up to $1,000 per day, reduce rent, or order a rent reduction equal to the reasonable cost of completing the work.
• For a new tenancy, rent would generally be limited by the previous lawful rent, with rules for units not rented in the last 12 months or never rented before.
• Tenants directly affected by an application for an above-guideline rent increase could request legal representation from legal aid. The usual eligibility tests and contributions would not apply.
• A landlord who had not filed the required registry statement could not increase rent for that unit until filing. The bill also adds consequences for failing to file or giving false information.

What it means for you#

• Tenants: If your landlord does not complete work required by a settlement or order, you could apply to the LTB without first giving the landlord notice. You would need to provide the settlement or order and an affidavit (a sworn written statement). Special timing rules apply to some work orders.
• Tenants facing an above-guideline increase: If you are directly affected by the landlord’s application and request help, legal aid would have to provide representation, without the usual eligibility tests or a required contribution.
• Landlords: You would have to file a statement within 30 days after entering a lease, give the tenant a copy, and report rent changes within 30 days after they take effect. A tenant could challenge the accuracy within 60 days of receiving a statement or notice.
• Renters and the public: You could look up a unit’s address, rent and rent-change dates. A prospective tenant who has applied to rent a particular unit could request other information about it. The Board could also share registry information with specified tax authorities.
• Landlords and tenants: The bill would change the landlord’s repair duty and rules for lawful rent. The supplied material does not include the full current Residential Tenancies Act, so the changes cannot be fully compared with current law.

Money#

No cost estimate is available in the supplied material.

• The LTB would have to create and maintain the registry, and legal aid would have to provide the specified representation; the bill gives no staffing or cost estimates.
• The Board could order a landlord to pay an administrative fine of up to $1,000 per day for failure to complete specified work. The fine goes to the Board, not the tenant.
• The bill does not set out the amount of any penalty for failing to file a statement or filing false information.

What is unclear#

• The bill does not give the Board’s process or timeline for handling a tenant’s application about unfinished work, beyond the listed conditions and possible orders.
• It does not define key terms such as “new tenant,” or explain how the registry would verify information beyond requiring reasonable steps.
• It does not explain how registry information would be corrected when a tenant does not apply, or what information may be prescribed later.
• The bill repeals an existing provision of the Residential Tenancies Act, but the supplied material does not include that provision, so its effect cannot be checked.
• The bill says most provisions would start six months after Royal Assent. A legal aid change tied to the 2020 Act would start on a separate date; the supplied material does not establish when that would be.

Case for#

• A rent registry could give renters information about the rent history of a unit before they commit to renting it.
• Requiring landlords to report rents could make it easier to check whether rent rules are being followed.
• The tenant application process and possible daily fines could provide a way to press for work required by an order or mediated settlement.
• Legal representation without an income test could help tenants respond to above-guideline rent increase applications.

Case against#

• Publishing addresses alongside rent histories could raise privacy concerns for tenants, even though the bill does not propose making tenants’ names public.
• The bill creates new filing and registry duties but does not say how the Board would manage the workload or pay for it.
• It gives the Board significant choices over remedies for unfinished work, but the supplied text does not set out a detailed application process.
• The supplied material does not show how the new rent rules would interact with all existing exemptions and other rent rules.