Illegal Basement Unit (RTA)

CET-43033-14 (Re), 2014 CanLII 57295 (ON LTB)

1. The rental unit is not licensed with the City of Mississauga making it an illegal basement rental unit under the City by-laws. This is undisputed.

...

8. The Tenant contacted the City of Mississauga to report her illegal basement after she provided her notice to the Landlord to terminate the tenancy effective August 31, 2014. It is unreasonable to believe that the Tenant was forced to move out when she did not know she might have to pursuant to the City Order against the Landlord at the time she gave her notice. Therefore, I find that the Tenant’s evidence demonstrated, on the balance of probabilities, that she was not forced to move out because of the City of Mississauga Order made against the Landlord to comply with the by-law to either convert the rental unit or license it.

TNT-85168-16 (Re), 2016 CanLII 104357 (ON LTB)

19. The Tenants take the position that the Landlord is interfering with their reasonable enjoyment of the premises by living in an “illegal basement.” However, the concept of an “illegal basement” has no meaning in the Residential Tenancies Act, 2006 (the ‘Act’). The real basis of the Tenants’ complaint is that, because the basement is being used as a dwelling, it is subject to more stringent Fire Code regulations than would apply to an unfinished basement. The Tenants allege that the Landlord is not complying with the Fire Code’s requirements.

TET-92081-18 (Re), 2018 CanLII 113788 (ON LTB)

23. No evidence was led that the basement unit is an illegal unit and even if it is, there is no automatic correlation between that fact and a finding that the Landlord breached ss. 22 or 23. It is not harassment to rent to someone an illegal basement unit nor does it necessarily constitute substantial interference with reasonable enjoyment. Plenty of tenants live happily in illegal basement units.

TEL-87359-18-SA (Re), 2018 CanLII 111792 (ON LTB)

32. When the Landlords found out they were operating an illegal rooming house, what they should have done is serve the appropriate notice to terminate. In circumstances such as these most landlords serve an N5 alleging the illegal rooming house is substantially interfering with a lawful interest of the landlord because the municipality is threatening prosecution for the zoning infraction. Some landlords serve an N6 alleging the tenants are committing an illegal act by occupying an illegal rooming house.

33. That being said, there is nothing wrong with a landlord in this situation asking tenants if they would be willing to terminate the tenancy by agreement. But that is not what the Landlords here actually did.

34. Their letter of November 5, 2017 says the Tenant has to move out by December 5, 2017 because the police gave them 30 days to clear the basement. In other words, the Landlords falsely informed the Tenant he had to sign the N11 form. As the Tenant clearly did not realise that was untrue, he did not give informed or voluntary consent to terminate his tenancy. To refuse to set aside the eviction order in that situation would be fundamentally unfair.

35. I would also observe that it is not entirely clear that the Landlords are still in violation of the local zoning by-law. If they are then they have the option of serving the appropriate notice to terminate.