CHAPTER 4: THE TENANCY AGREEMENT Emond Montgomery Publications 1

Chapter 4: The Tenancy Agreement Purpose of the tenancy agreement Basic elements of a tenancy agreement Responsibility for utilities Types of tenancy agreements Information that a landlord must provide to tenants Rules related to landlords selecting tenants Emond Montgomery Publications 2

Purpose of the Tenancy Agreement The main purpose of the tenancy agreement is: to establish and define the relationship between the landlord and the tenant The real nature of an occupancy agreement is essential in determining whether the RTA applies to a particular relationship Emond Montgomery Publications 3

Basic Elements of a Tenancy Agreement The basic elements addressed in a tenancy agreement are the following: the premises being rented For example, a house or an apartment the use of the premises the amount of rent to be paid the start date of the tenancy the date at which the tenancy ends Emond Montgomery Publications 4

Responsibility for Utilities The tenancy agreement sets out who is responsible for paying and arranging for the utilities such as: heat, electricity (“hydro”) water Historically, in most high-rise apartment leases, all utilities were included in the rent Today, there are many high-rise apartment leases where the tenant is responsible for some or all of the utilities Emond Montgomery Publications 5

Types of Tenancy Agreements A tenancy agreement can be: Written Oral Implied by action Note that the RTA overrides any term in a tenancy agreement that conflicts with the RTA (s. 3(1)). Emond Montgomery Publications 6

Written Tenancy Agreements Professional landlords usually use an application-to-lease form as well as a lease A tenant completes an application form that sets out: the address of the unit the rent the proposed starting and ending date for the tenancy The application form usually requires the prospective tenant to list previous landlords and to give employment references If a landlord accepts a tenant, a written tenancy agreement (a lease) is then signed Emond Montgomery Publications 7

Oral Tenancy Agreements Some small landlords make oral tenancy agreements with their tenants Uncommon among large landlords Oral tenancy agreements often come back to haunt the parties when a dispute arises over when the tenancy is to end Parties should confirm the most important elements of the agreement in writing as soon as possible Emond Montgomery Publications 8

Implied Tenancy Agreements Implied tenancy agreements can arise in numerous ways, most commonly through an unauthorized assignment. For example, the situation of a tenant, George, who has a friend, John, move in with him. Assume that John signs and gives the landlord a rent cheque and that the landlord cashes the cheque without comment. If this goes on for some months with George’s approval, then there may be an implied tenancy agreement between the landlord and John, or between the landlord and George and John together. Emond Montgomery Publications 9

Information that a Landlord Must Provide to Tenants All landlords are required to provide to the tenant a form which sets out: general information explaining the rights and responsibilities of landlords and tenants the role of the the board how to contact the board (s. 11(1)) Emond Montgomery Publications 10

Information that a Landlord Must Provide to Tenants Written tenancy agreements are required to set out the landlord’s legal name and address for service (s. 12(1)) If the property manager decides on whether to rent to a prospective tenant and whether to evict a tenant, the property manager is a landlord and their legal name and address for service is sufficient After making an oral tenancy agreement, the landlord is required to give the tenant a written notice setting out the: landlord’s legal name address for service (s.12(3)) Emond Montgomery Publications 11

Rules Related to Landlords Selecting Tenants There are no restrictions in the RTA respecting a landlord’s right to accept or reject prospective tenants. There are restrictions under the Ontario Human Rights Code (s. 2(1)). Some prohibited grounds of discrimination are: race colour ethnic origin religion sexual orientation age The board will not rule on complaints against landlords by people whose rental applications were refused Emond Montgomery Publications 12

No Pet Provisions Landlords can refuse to rent to a prospective tenant because they own a pet. Once the landlord and tenant enter into the tenancy agreement, any prohibition in the tenancy agreement against having a pet is void (s.14) Emond Montgomery Publications 13