Notice of Rent Increase (N1)

Increase Rent on Consent

Residential Tenancies Act, 2006, S.O.

121 (1) A landlord and a tenant may agree to increase the rent charged to the tenant for a rental unit above the guideline if,

(a) the landlord has carried out or undertakes to carry out a specified capital expenditure in exchange for the rent increase; or

(b) the landlord has provided or undertakes to provide a new or additional service in exchange for the rent increase.

123 (1) A landlord may increase the rent charged to a tenant for a rental unit as prescribed at any time if the landlord and the tenant agree that the landlord will add any of the following with respect to the tenant’s occupancy of the rental unit:

1. A parking space.

2. A prescribed service, facility, privilege, accommodation or thing. 2006, c. 17, s. 123 (1).

Application

(2) Subsection (1) applies despite sections 116 and 119 and despite any order under paragraph 6 of subsection 30 (1). 2006, c. 17, s. 123 (2).

124 An agreement under section 121 or 123 is void if it has been entered into as a result of coercion or as a result of a false, incomplete or misleading representation by the landlord or an agent of the landlord.

125 A landlord shall decrease the rent charged to a tenant for a rental unit as prescribed if the landlord and the tenant agree that the landlord will cease to provide anything referred to in subsection 123 (1) with respect to the tenant’s occupancy of the rental unit.

Service of NORI - Re: Failed to Serve

TSL-72945-16 (Re), 2016 CanLII 53015 (ON LTB)

12. Moreover, I note that, on October 30, 2015, some five months before the Landlord filed the within application and the Tenant became aware of these proceedings, the Tenant delivered a letter to the Landlord stating, in part, “I have never been notified of any rent increase since the initial increase to $1015 in April 2014.” The Tenant then proceeds to ask the Landlord for information and clarification about the arrears claimed in the N4 notice. Equally telling, is the Tenant’s statement in the said letter where he informs the Landlord as follows: “If rent is going up, notify me, and I will pay the increase (if it is reasonable). I can pay $1050 monthly. That is not the issue.” The Tenant’s letter, in my view and for the reasons stated, corroborates his testimony that he was not served with a NORI 90 days prior to April 1, 2015. It appears that the Landlord’s response to the Tenant’s letter was to file this application with the Board.

13. For these reasons I find, on a balance of probabilities, that the Landlord failed to serve the Tenant with a NORI 90 days prior to April 1, 2015 and, accordingly, the rent increase claimed by the Landlord to have taken effect on that date is unlawful.

TSL-80962-17 (Re), 2017 CanLII 60295 (ON LTB)

20. The Act and the Board’s Rules require a landlord to provide a tenant with documents, including NORIs, and, if they are served in accordance with the Act and Rules, they are deemed to have been served whether the tenant receives them or not. It is only when documents are not served in accordance with one of the permissible methods set out in subsection 191(1) of the Act or Rule 5 that a landlord must prove the tenant actually received them (pursuant to subsection 191(2) of the Act).

21. Here, the certificate of service provided by the Landlord states that the NORI was served to the Tenant, by AC, in accordance with one of the permissible methods set out in subsection 191(1) of the Act. In particular, by placing the document under the door of the rental unit on August 16, 2016. Moreover, AC’s affirmed and uncontradicted testimony was to the same effect. I further note that the Tenant acknowledged that he received the N5 notice of termination that was served to him, by AC, at the same time as the NORI. As well, NO, who initially testified that he was unaware of the NORI at issue, later conceded that it is possible that the Tenant received the NORI and did not bring the document to his attention. NO also testified that he was unaware that the Tenant was served with the N5 notice on August 16, 2016—something readily admitted by the Tenant.

22. AC was cross-examined by the Tenant’s legal representative during the sitting of this matter on March 27, 2017. His testimony going to the service of the NORI to the Tenant remained unshaken, was provided in a straightforward fashion and was wholly devoid of internal inconsistencies and was consistent with the documentary evidence provided.

SWT-00924 (Re), 2008 CanLII 82447 (ON LTB)

5. I believe the RTA and the Court of Appeal decision make it clear that where notice to increase the rent did not give 90 days notice, the notice is void – a nullity – as though it never existed. Section 116(4) of the RTA makes it clear that a landlord must first give a new, valid, notice before any increase may be taken from a tenant. The Landlord’s honest, but mistaken, belief while understandable cannot change the application of the law. In light of this, I must find that none of the Landlord’s notices complied with either the TPA or the RTA. Accordingly, all of the Landlord’s notices are void and it is as though they never existed.

6. As the Court of Appeal explored in Price, even though the Tenant has paid the unlawful rent for more than 12 months this rent cannot be “deemed lawful” as section 136 is not intended to make a void increase lawful. Therefore, this section will not be applied in this case.

Guide Line Increase

Year	Rate		Year	Rate		Year	Rate		Year	Rate		Year	Rate		Year	Rate
2020	2.2
2019	1.8		2015	1.6		2014	0.8		2013	2.5		2012	3.1		2011	0.7
2018	1.8		2010	2.1		2009	1.8		2008	1.4		2007	2.6		2005	1.5
2017	1.5		2004	2.9		2003	2.9		2002	3.9		2001	2.9		2000	2.6
2016	2.0		1999	3.0		1998	3.0		1997	2.8		1996	2.8		1995	2.9
1994	3.2		1993	4.9		1992	6.0		1991	5.4