Ontario Landlords Are Now Required To Pay Tenants If They Evict On The Basis of Personal Use
The rules for ending a tenancy for a landlord's or family member's own use, including the compensation owed, have changed more than once since then. Don't rely on this post for a current N12. Check the current guidance and forms on the Landlord and Tenant Board's website, or talk to a paralegal or lawyer.
Tenants are now entitled to a full month's rent as compensation if units are used by landlords or their families
As of September 1, the provincial law in Ontario has changed. When a landlord ends a tenancy so that they or a family member can move in, the tenant must receive compensation. Alternatively, landlords can offer the tenant another acceptable rental unit. Landlords are also required to intend to occupy the unit for at least a year. These measures are meant to discourage landlords from converting units into short-term rentals, or re-renting them at a higher rent in a hot market like Toronto's. Breaking the new rules can bring a fine of up to $25,000.
"When a tenant is evicted through no fault of their own, they are forced to scramble to find new accommodations and cover the costs of a sudden move." Ontario's housing minister, 2017
It has been an extraordinarily busy year of changes to Ontario's Residential Tenancies Act, through the Rental Fairness Act. The changes were part of the provincial housing plan announced this spring, which also extended rent control to all rental units in the province, not just those built before 1991.
Landlords aren't happy about the new rules, especially in a city like Toronto, where the vacancy rate has hovered around 1% and demand far outstrips supply. The Federation of Rental-housing Providers of Ontario said the change "will have a very significant impact on small landlords and a very significant impact on condominiums."
Tenant advocates, meanwhile, had reported widespread abuse of the N12 form in Toronto's condo market, and many welcomed the change.
Originally published September 22, 2017. We've removed links that no longer work and the names of the people quoted. This post is general information, not legal advice.