03/03/2024
‘How cards are stacked against tenants’
Landlords caught breaking eviction rules get off lightly, recent cases show
Toronto Star3 Mar 2024VICTORIA GIBSON AFFORDABLE HOUSING REPORTER
SOURCE: ONTARIO MINISTRY OF MUNICIPAL AFFAIRS AND HOUSING TORONTO STAR GRAPHIC
More than two years after a pair of Markham tenants left their home so their landlord’s family could move in, their suspicions were confirmed by Ontario’s Landlord and Tenant Board — the eviction notice, it ruled, had been a “guise.”
Within months, the landlord had re-rented the townhouse for a higher price — enough to net them more than $14,000 in additional income within a single year. The board rejected the landlord’s defence that they’d found the home unsuitable after moving in.
But the punishment ordered ultimately fell short of the potential profits, with a fine of $4,800 plus $6,853 in tenant compensation, according to the November 2023 ruling.
Across Ontario, a growing number of tenants have accused their landlords of giving them bogus eviction notices, for reasons like personal use and renovations. But a Star analysis of two processes meant to punish and deter badfaith activity shows landlords caught breaking the rules are often handed far milder punishments than are available, and can quickly recoup their losses.
This trend has played out despite the province vowing stiffer consequences, with new legislation in 2020 that raised the maximum fines for housing law offences to $50,000 for individuals, up from $25,000.
Over a recent one-year period, from the start of November 2022 to the end of November 2023, the Star identified 11 rulings at the Landlord and Tenant Board where a landlord was caught giving an eviction notice in bad faith. Most were for personal use, only to list the property for sale, advertise it as a short-term rental or ink a new lease. None were given a board fine of more than $10,000. In all six cases where evidence showed pre- and post-eviction rents, the landlord could have recouped the cost of their punishment by the hearing date by charging the higher rents.
An LTB spokesperson confirmed their punishments haven’t changed since the province raised the maximum fines, saying any fine over $35,000 was beyond its jurisdiction. If a tenant hoped to see their landlord charged to the full extent of the new laws, the board says they’d have to take their case to the provincial Rental Housing Enforcement Unit — a more discerning body, which receives tens of thousands of calls each year, and prosecutes up to a few dozen cases.
But here, again, data shows actual fines are more modest. Of 17 convictions reached in the 2022-23 cycle, the steepest fine was $20,000. The provincial Housing Ministry would not disclose a full list of fines despite repeated requests. Collectively, however, the fines ordered across all 17 convictions totalled $121,800, the province says — meaning an average fine of $7,164.
“This is simply another example of how the cards are stacked against tenants,” said David Hulchanski, a housing and social policy expert with the University of Toronto. He sees the situation as similar to the growing wave of car thefts in the GTA: if the potential payoff exceeds the risk, the problem can balloon.
“That’s why the number of cases keeps going up: more and more people realize you get away with it.”
Adjudicators with Ontario’s Landlord and Tenant Board know — and often point out — the profits that landlords are able to secure by skirting the rules.
In one November 2023 ruling, an adjudicator ruled against the landlord of a property near Ottawa who had given their tenants a personaluse eviction notice after unsuccessfully negotiating a rent hike. Once the tenants left, the home was re-rented for $500 more per month, or $6,000 more per year. By the time the tribunal made a ruling, more than two years had elapsed.
“I find that the Landlord harassed the Tenants into vacating the rental unit over the course of seven months, for the purpose of re-renting it for a higher price … This is an abuse of process and a blatant disregard for the Act. Therefore, I find that an administrative fine of $500 is reasonable in this case,” it said.
The board also ordered tenant compensation of just over $7,000, allowing the landlord to have recouped their losses by the time of the ruling.
A year earlier, an adjudicator fined a Windsor landlord who gave their tenant a personal-use eviction notice, only to offer them back the unit at a higher price.
“After the landlord pays the tenant’s rent differential and expenses, the landlord would be ahead $1,453.09 after one year,” that ruling said. That amount wouldn’t provide adequate deterrence, the adjudicator wrote. They decided to fine them less than $50 more, ruling a $1,500 fine “appropriate.”
The Star reached out to multiple adjudicators involved in these files; none answered, with a tribunal spokesperson responding that they would manage inquiries. In a written statement, the tribunal said its adjudicators were “independent decision-makers with the exclusive authority to make decisions.”
“To preserve adjudicative independence, the LTB cannot comment on specific adjudicative decisions,” wrote spokesperson Veronica Spada.
The cases included real estate professionals who re-advertised their properties themselves. In one case, an elderly blind man kicked out for renovations watched his home be advertised as short-term rentals, and was still trying to secure housing by his hearing date.
Shaun Harvey, a paralegal who represented the Markham tenants, believes the current fines are low enough that some landlords can justify them as a tradeoff for longterm profits — especially when they have long-time tenants paying below market rents.
“In less than two years, they will recover their money and start making a huge profit. And in my opinion, this is a huge failing in the law.”
The number of no-fault eviction filings has been on the rise in Ontario, growing from 3,913 applications in 2019 to 5,508 in 2022. This increase has come alongside a rising number of tenants alleging wrongdoing by their landlords.
The province has vowed to address this mounting concern. In 2020, it brought forward legislation that doubled the maximum fines for Residential Tenancies Act offences from $25,000 to $50,000 for an individual and from $100,000 to $250,000 for a corporation. Those kinds of fines have to be sought by from the province’s enforcement team through the courts, the LTB says.
Every year, according to the province, the enforcement unit receives about 14,000 to 18,000 calls. The housing ministry says most cases are closed after the involved parties are “educated” about the rules; a small number are prosecuted.
In 2022-23, the ministry says 17 of its 21 prosecutions resulted in convictions. Since few are announced, it’s unclear how many are related to bad-faith evictions. But none of the penalties came anywhere near the new maximums, which can apply to any offence committed on or after July 21, 2020.
In a pair of recent convictions the government did announce, against the owner and management company of the same building, the fines for an offence after that cut-off date were substantially lower.
According to the case summaries, a tenant was given an eviction notice for “extensive repairs and renovations,” then denied their legal right to return. Instead, the home was re-rented for more than double the prior rent. The owner was fined $15,000 plus a victim surcharge, and the management company was fined $12,000 plus a victim surcharge, the two releases say.
U of T’s Hulchanski argues the system needs greater transparency in order to identify any enforcement issues.
“Where is the sunlight so people can see what is happening?” he said. “Regulations don’t mean much if they’re not being enforced — and they’re clearly not being enforced.”
The province has doubled down on its strategy of boosting fines for rule-breakers, passing new legislation that would raise the maximums to $100,000 for individuals and $500,000 for corporations — a move a spokesperson for Housing Minister Paul Calandra said would make the provincial punishments the “toughest in Canada.” As of mid-January, the changes had yet to be enacted.
However, advocates, policy experts and some other elected officials believe it’s still a system replete with loopholes. Many believe far more cases are playing out quietly than are reported to bodies like the Landlord and Tenant Board.
“There’s a variety of tenants who don’t have time, and I don’t blame them, to suddenly become a private investigator,” said Benjamin Ries, executive director of South Etobicoke Community Legal Services.
Ries believes the current rules incentivize landlords to get longstanding tenants out, as landlords can raise rents by any amount between leases. To tackle bad-faith evictions, he believes more preventative measures are needed.
It’s an opinion shared by some at Toronto city hall. Paula Fletcher, councillor for Toronto Danforth, is among city officials who have recently proposed an extra level of scrutiny during the eviction process, inspired by a move in Hamilton.
In cases where a landlord wants to evict a tenant for renovations, the councillors have asked staff to report back on the possibility of requiring a special renovation permit from city hall.
While Fletcher hopes such a move limits renovictions, she doesn’t believe the city can compel proof in own-use eviction cases. That process, she said, fell under provincial jurisdiction.
While stressing there are fair reasons to allow landlords to move their families into a property or renovate, she believes the rules are increasingly being seen as a workaround. “They’ve now become loopholes … That’s the part where the oversight is not in place by the province.”
When asked about the Star’s findings and Fletcher’s concerns this week, the government responded in a brief email that it would be inappropriate for the ministry to comment on court decisions, and offered no further comment beyond information shared in previous weeks as the Star reported this story.
Among details, the prior emails noted that tenants did not have to leave voluntarily when given an eviction notice. “If a landlord gives a tenant notice to end the tenancy, the tenant does not have to move out unless and until an eviction order is issued by an adjudicator,” the government wrote in January.
Fletcher said if a landlord can get caught wrongly evicting a tenant but make up their penalties in profit, there’s a case for closer scrutiny.
“That’s not even a slap on the wrist,” she said. “There are no consequences.”
‘‘ This is simply another example of how the cards are stacked against tenants. That’s why the number of cases keeps going up: more and more people realize you get away with it.
DAVID HULCHANSKI A HOUSING AND SOCIAL POLICY EXPERT WITH THE UNIVERSITY OF TORONTO