The Rural Voice, 1996-08, Page 16393 Cambridge St., Goderich
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12 THE RURAL VOICE
Agrilaw
`Tenant Protection' proposals to
impact farm dwelling rentals
By Paul Cappa
The Minister of Municipal Affairs
and Housing has released a Consulta-
tion Paper
announcing
plans to replace
existing
legislation
governing
residential
tenancy
agreements.
The proposed
"Tenant
Protection"
legislation will
substantially
amend and
consolidate
provisions of
Part IV of the
Landlord and Tenant Act, the Rent
Control Act, the Land Lease Statute
Amendment Act, and other related
legislation.
For those farm operators that rent
out surplus farm dwellings or lots for
mobile homes, the new legislation is
expected to provide some flexibility
for negotiating rents and to streamline
the court process for resolving
disputes with tenants.
The proposed changes relate only
to the rental of residential dwellings
and sites for mobile homes; commer-
cial land leases for agricultural opera-
tions are not subject to the legislation.
The most significant change will
allow landlords to charge a market
rent once the rented dwelling or lot is
vacated. When re -rented, the
dwelling or lot will again become rent
controlled and future rent increases
will be limited to the annual
government guideline (expected to be
about 2.8 per cent for the next two
years). The govemment expects this
provision will encourage landlords to
upgrade rental dwellings in exchange
for the right to charge a market rent
on the turnover of the rental unit.
In circumstances where an existing
tenant remains in the rental unit, the
landlord will be entitled to make an
application for a rent increase over
and above the government guideline
The
ground rules
hange
for
landlords,
tenants
in certain circumstances: ie: capital
improvements to the property; to pass
on "user fees"; or to help absorb
"extraordinary" operating cost
increases. Where the application is
made in connection with capital
improvements the increase will be
capped at four per cent above the
statutory guideline each year, with an
additional phase-in of the capital
allowance over two years; otherwise,
if the application is made in respect of
an extraordinary increase in utilities,
municipal taxes or user fees, there
will be no cap to the increase.
The proposed pass-through of
these expenses is in sharp contrast to
the NDP rent control legislation
which made it virtually impossible for
a landlord to recover any costs
incurred with respect to the operation
of rental properties.
The present exemptions afforded
by both the Rent Control Act and the
Landlord and Tenant Act will remain
unchanged. The exemptions apply in
those situations where tenancies have
either been created for farm
employment purposes or the premises
are occupied for agricultural purposes
with living accommodation attached,
all of which is under a single lease.
The government proposes to
establish a mediation service in an
attempt to resolve disputes between
landlords and tenants that arise in
connection with tenancy agreements.
Landlords may still make application
to terminate a tenancy agreement
where the tenant is in arrears of rent
or in breach of the provisions of the
tenancy agreement; however, the
responsibility for administering these
Applications will be transferred from
the Courts to the Ministry of
Municipal Affairs and Housing.
In most cases farm operators will
still be required to serve their tenants
with Notices of Rent Increase where
they are proposing to increase the
rent. The existing rules limiting one
rent increase per 12 month period,
upon 90 days written notice to the
tenant in the "prescribed form", will
remain unchanged.
Rural tenants have been successful