Landlords, tenants at odds over contentious Bill 184 as Ontario’s eviction moratorium ends

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Recently enacted legislation to regulate landlord-tenant disputes in Ontario has generated significant controversy. Opponents of Bill 184 believe it gives undue powers to landlords and may lead to an increase in tenant evictions. The Ontario government, on the other hand, believes the new legislation will empower landlords and tenants to reach negotiated settlements on their own, while increasing penalties against landlords who act in bad faith.

Dubbed the Protecting Tenants and Strengthening Community Housing Act, the bill has been especially contentious in Toronto, where it has been met by heated protests and where city council has decided to challenge it in court.

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Landlords, tenants at odds over contentious Bill 184 as Ontario’s eviction moratorium ends Back to video

But the effects of the law won’t be limited to the province’s largest city. The economic downturn induced by COVID-19 is believed to have hurt rental households more than owners, and, as a moratorium on tenant evictions expires in Ontario, that means millions of tenants and their landlords across the province are seeking clarity on this issue.

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The changes in Bill 184 are numerous. One main difference is that it empowers landlords and tenants to reach an agreement by themselves on matters such as repayment plans for rent that is owed if a tenant has defaulted on rental payments.

At present, these kinds of disputes are resolved by the Landlord and Tenant Board (LTB), a provincial tribunal that has struggled with a growing backlog of cases, which some blame on the province’s failure to appoint enough adjudicators.

If landlords and tenants were to reach mutual resolutions, it could reduce the workload at the LTB, thus improving its efficiency.

Tenant advocates are of the view that landlords hold sway over tenants who, in some cases, might not be proficient in English or French or have the financial literacy to enter into binding agreements with landlords in a fair way. These advocates believe that a mediated resolution by the LTB is needed to protect vulnerable tenants.

Some tenants indeed, might commit themselves to unworkable repayment plans on which they may default soon afterwards, leading to an eviction.

Bill 184 does offer some checks and balances. Once a landlord and tenant have reached an agreement, it must still be presented to the LTB for approval. Hence the board can review the agreement before issuing a consent order. Should tenants realize that they have been forced into an unfavorable agreement, they can appeal to the LTB within 30 days of the consent order. The tenant can also ask the LTB for a hearing after agreeing to a repayment plan.

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Bill 184, therefore, does provide tenants with an opportunity for redress in case they are not pleased with a negotiated settlement with their landlords, and the LTB still has oversight of the arrangements reached by landlords and tenants.

But tenant advocates are critical of the provisions in Bill 184 that enable a landlord to get an eviction notice without notifying the tenant if the tenant is in breach of the negotiated repayment plan. Tenant advocates believe that landlords will be able to act on evictions unilaterally without any oversight by the LTB.

The Ontario government’s position is that this is not a new provision.The existing Residential Tenancies Act allows landlords to secure an eviction notice should the tenant breach the mediated settlement endorsed by the LTB.

Trade groups representing landlords point out that under Bill 184, a tenant could still challenge an eviction notice, thus making the LTB the final authority in a dispute between a landlord and a tenant.

Until recently, moratoriums of one kind or another on residential rental evictions had been in place across Canada. Provincially declared emergencies restricted landlords from evicting tenants who had defaulted on rent payments. Ontario’s moratorium on evictions was lifted in late July. The LTB, which was not conducting eviction hearings since the lockdown, also started to operate again on Tuesday.

For those who have the financial wherewithal to reach an agreement with their landlords, Bill 184 will help them to do so without having to wait for a hearing at the LTB.

But for tens of thousands of renters who have lost their jobs, paying rent on time may not be an option, despite the help from various tiers of government. Without jobs or stable pay, those tenants are unlikely to come to a resolution with their landlords. For them, the LTB might continue to be the mediator of last resort.

Murtaza Haider is a professor of Real Estate Management at Ryerson University. Stephen Moranis is a real estate industry veteran. They can be reached at www.hmbulletin.com.