Monday, June 12, 2023

Renting with a roommate in Ontario? Here are the rights and regulatiojs you should know.

 

Renting with roommates in Ontario? Here are the rights and regulations you should know.

Are you one of the many people in Ontario living with roommates? The amount of roommate households in Canada has grown by approximately 54% since 2001 and is currently the fastest growing household type. In Ontario, there are several types of co-living arrangements you can be a part of; however, being able to tell which one you fall under can be difficult. Here are some of the most common roommate arrangements in Ontario

1. Joint Tenants

What they are

  • A joint tenancy is the most common co-living arrangement landlords use when renting to two or more adults.

What to consider

  • All tenants can be evicted for a breach of tenant obligations such as arrears or property damage.
  • If any rent or other money is owed to the Landlord, all tenants listed under the lease can be considered responsible for paying the full amount. In the case that you and your roommate(s) agreed to split the cost, you can still be held responsible if you paid your share and your roommate(s) did not.

2. Tenants in Common

What they are

  • Two or more tenants live in the same unit together, however they have separate leasing agreements. 
  • Each roommate pays their individual rent to the landlord separately.

What to consider

  • Unlike with a joint tenancy, if one of the tenants does not pay their part of the rent, the landlord can only hold that individual tenant liable.
  • Landlords may have a difficult time working with these types of lease agreements, and typically prefer a joint tenancy agreement.

3. Tenant/Occupant

What they are

  • Occupants are people who consider the unit their primary residence, but, unlike a tenant, are not on the lease. As they are not on the lease, they are not formally responsible for paying rent to the landlord – only those listed as tenants in the lease are. They may have an arrangement to pay the tenant part of the rent.
  • Common examples of occupants include: some spouses (married or common law) and/or children. Anyone can be an occupant based on the leasing agreement and whether they have permission from the landlord. Many “Roommates” are occupants, although some may be joint tenants or tenants in common.
  • Anyone under 18 who is a dependent of the tenant is an occupant by default.

What to consider

  • In some cases, since the occupant may not be covered by the lease, the occupant has little to no rights or control over their living in the residence.
  • Occupants are unable to bring issues they have with a tenant or landlord to the Landlord and Tenant Board.
  • If a tenant is evicted, the occupant will need to leave as well.
  • Tenants are solely responsible for paying rent to the landlord but can choose to divide rent with an occupant in the amount they see fit, or as agreed to in a separate contract. .
  • In a scenario where the occupant is someone renting from the tenant, it is generally recommended that a contract be made. If a contract has been formed, the occupant can take the tenant to court if the terms of their agreement are not being met. Keep in mind that the judge will look at the case based on contract law, not based on the RTA.

Sometimes, a tenant can be incorrectly labelled as an occupant. It’s important to know how you are protected under the law, if you are unsure whether you are a tenant or occupant, seek legal advice.

RTA-exempt Arrangements

What they are

  • In an agreement exempt from the Residential Tenancies Act, relations between the owner and those occupying the property are decided solely by the contract that has been made.
  • Examples of RTA-exempt arrangements include living directly with the landlord or a family member of the landlord, living in a student residence, living in hotels, motels, and/or vacation homes.
  • Unsure if your living arrangement is RTA-exempt? You can find a full list of RTA exemptions here. If still unsure, it is best to get legal advice.

What to consider

  • RTA-exempt agreements do not need to follow rent control guidelines.
  • The RTA provides timelines for eviction that won’t protect renters who are exempt from the RTA.
  • If you are in a RTA-exempt agreement, you cannot pursue legal action against your landlord at the Landlord and Tenant Board, but you can take them to court if there is a breach of contract. The court will look at your case based on contact law, rather than the RTA.
  • Landlords will sometimes falsely claim that a tenant is exempt from the RTA to undermine their rights. If you think your landlord might be doing this, seek legal advice.
  • Being under an RTA-exempt agreement does not automatically mean you have no protections under the RTA. Seek legal advice to find out the ways in which the RTA applies to you.

It’s not always clear what roommate agreement applies to you. It’s important to know where you stand legally to best protect yourself. We recommend that you pursue legal advice to get more information and guidance on your specific situation.

Do you want to learn more about your rights as a renter? ACTO has developed tip sheets and guides, which can be accessed here.

No comments:

Post a Comment