You have finalized a deal with a new tenant and now must taken the necessary steps to protect the investment you have made:
The rules pertaining to collecting deposits are different, depending on the province. In Quebec, for example, landlords are not legally able to collect a deposit from tenants. In Ontario, though, landlords can collect a deposit, but it is not considered a “security deposit”, so the landlord cannot use the amount given by the tenant to cover the cost of repairs to the property. In certain other provinces, the Rentalsman office, as opposed to the landlord, holds onto the deposit for the landlord and tenant.
At the end of a tenancy, the deposit that was initially collected is given back to the tenant, usually be covering the cost of their last month’s rent. There is also usually a difference between the amount of the initial deposit that was given at the beginning of the tenancy and when the tenant leaves. If the tenant has failed to give you any extra money to put towards the deposit for rent increases, you are entitled to use the interest on the deposit, if applicable, to cover this difference.
Landlords in all different areas across Canada cannot keep the deposit of a tenant who is leaving or charge them for additional repairs to the property. There must be a negotiation of payment with the tenant and if they disagree, the landlord has to file a formal application the local rental authority to keep the deposit or charge the tenant for damages that add up to more than the amount of the deposit plus interest.
The total amount that is given back to the tenants when they move out depends on the official guidelines that are set for the respective province or territory. Some of the factors that determine this amount include:
Rent increases are just a fact of life, but by how much can you legally increase the rent of your tenants? Each province and territory has their own guidelines and rules about this. Check the Provincial and Territorial Fact Sheets for more information.
In a vast majority of jurisdictions throughout Canada, you have to give at least 90 days written notice of a rent increase. The amount of time that you have to notify the tenant depends on the type of tenancy, whether it is weekly, month-to-month, or annually. There are some parts of Canada where a rent increase may occur only on the anniversary of the tenancy and the landlord is required to give four months prior notification.
A rent increase is not valid unless there has been proper advance notification given to the tenant that states when it will go into effect. If you fail to give proper advance notice, the tenant has every right to deny paying the rent increase until the appropriate notification has been given.
Rent increases are most common when it comes time to renew the lease, and there is a total of just one increase per year that is permitted. There are certain provinces that have specific guidelines for rent increases that are based on cost estimates for things like taxes, heat, electricity and improvements made to the property.
In Ontario, rent control is in effect for all existing tenancies. When a tenant moves out, though, the rent control no longer applies to that unit, so the landlords can legally raise the rent to a rate of their choice. For all existing tenancies, Ontario landlords can propose a rent increase about what the guidelines have set for the province. Landlords that wish to make this proposal must file a formal application to the province’s rental authority for approval before it can go into effect.
When it is time for a tenant to move out, the Landlord will want to ensure that the tenant leaves on good terms, so they can protect their investment. The following are some tips that can help you to ensure that the rental agreement ends on good terms with your tenant(s):