When Landlords Owe a Rent Abatement in Ontario
There will always be issues with a property, from major to minor. A condo may have an upstairs neighbour with a leaky bathtub. A brand-new heater may decide to die in the middle of winter. While proactive maintenance will keep most of these issues from occurring, something will happen in the course of your landlord career, guaranteed.
Your job, according to the Residential Tenancies Act, is to fix the problem as quickly as possible. This isn’t always straightforward. Contractors may be unavailable, parts may have to be shipped – even minor issues can take some time to resolve. As time passes, your tenant is likely to become annoyed and start thinking about asking for a rent abatement at the Landlord and Tenant Board.
Under the RTA, they are entitled to rent abatements for the disruption of vital services or if you have seriously interfered with the reasonable enjoyment of the property. While it is in everyone’s best interests to get the root problem solved as quickly as possible, rent abatement threats are usually nothing to fear unless you’ve been grossly negligent. First, they will file the correct forms with the LTB and you’ll be assigned a hearing date. Then, that hearing will happen and the adjudicator will decide how much you owe, if anything.
How a Rent Abatement is Calculated and Paid
If a tenant is entitled to a rent abatement, it is calculated at the Landlord and Tenant Board hearing, usually at a percentage of the daily rate for the time it took to fix the problem. If you believe that you have done everything in your power to fix the issue in a timely manner, and have sufficient evidence to prove it, it will likely be a minimal cost. The LTB does not exist to punish landlords for an appliance failing for a week – you will only incur significant costs if you routinely ignore issues or if you intentionally let the failure of a vital service drag out for a significant period of time.
For example, if heat in a condo was reduced a few degrees below the mandated amount, and you had to wait for the condo to fix a whole-building problem, you’re probably not facing a large sum. However, if heating completely failed in your detached property in the middle of winter and it took two months to deal with it, you may be looking at a larger rent abatement.
It can be paid in a combination of ways, from a lump sum for past issues to a reduction in rent for a specific period of time. It will really depend on the ruling. If you want to solve the issue without an LTB hearing, consult a legal professional for the best way to handle it. If the issue is simple, such as a tenant being without heat for a few days, offering to pay for a hotel until the issue is fixed will probably be enough for the tenant.
Sometimes, a tenant will feel wronged and may threaten to withhold all or part of the rent. If a tenant withholds rent, you can serve them with an eviction notice just as you regularly would in any other circumstance. You may also have tenants who threaten rent abatements over very minor issues. They are just usually looking for a quick resolution.
A property management firm like ours can keep many of these issues from happening in the first place, and handle everything if problems arise. For a low monthly cost, you can have insurance against having to deal with this kind of thing by having us take care of it for you. Contact us today to find out how we can help.
