Rising interest rates, climbing prices, and mounting debt are pushing up the cost of living for many Canadians. Toronto landlords may have a steady source of income but they’re not immune to economic pressures and some unscrupulous property owners are passing on that pressure to their tenants.

In a recent incident, several GTA tenants took their landlord to court for imposing charges on services they’d previously enjoyed for free. Hoping to squeeze more money out of the rental income, the landlord suddenly started charging for everyday conveniences such as using the bike rack ($15 per month) and making use of the building’s lockers ($35 per month).

According to the Federation of Metro Tenants’ Association, this isn’t a new phenomenon. Landlords often try to charge for services to cover costs but don’t be tempted to follow suit – suddenly imposing new fees is illegal. It damages your relationship with your tenant and exposes you to legal action with serious penalties. In short, it’s just not worth it.

Can Landlords Ever Charge for Services?

Under s.134 of the Residential Tenancies Act, landlords can’t impose new charges or fees for pre-existing services but they can charge for new or additional services, provided these were included upfront in the lease and with the tenant’s consent. 

Services landlords can charge for include laundry facilities, visitor parking, and air conditioning. If your tenant agrees to these charges before moving in, great. If not, you could consider raising your rent – as long as you notify your tenant and don’t increase it beyond the approved rent increase guidelines. 

Services landlords can definitely not charge for include:

• Paying for garbage 
• Paying for basic maintenance
• Contents insurance
• General Cleaning Fees

These are all deemed illegal charges and could earn you a hefty fine if brought before the Landlord and Tenant Board.

Building a good relationship with your tenants

In today’s hot housing market, the balance of power has shifted. With fierce competition in Toronto, landlords will always be able to find someone to fill their unit but you don’t just want any tenant, you want good tenants.

But you can’t attract good tenants without being a good landlord and that means knowing your tenant’s rights and what your responsibilities are towards them. If you want to charge for services, be honest and transparent about it. Clear communication is one of the most important aspects to building a harmonious relationship with your renters and will help smooth out any negotiations.

If you’re still struggling to decide what to charge for, how to set your rent, and how to handle your tenants, get in touch. Our property management team has been helping Toronto landlords rent their units for over three decades. We offer a full range of services, from finding and vetting tenants to emergency repairs and maintenance. 

Our experts work to resolve any issues immediately, keeping both you and your tenants satisfied that their needs will be promptly addressed. For more information about our property management services, get in touch with the Highgate team today.