Before to rent a property that you own, you have to know the basics of the rental legislation in Ontario. It is a Residential Tenancies Act. Don’t even start without reading RTA first.
If you are a new landlords, my advise would be to get to know other legislative acts besides RTA. What are they, and what landlords in Ontario should know?
1. Human Rights Code. If you are a realtor and work with a landlord who is your client, you have to remember that RECO insurance does not cover the violations under Human Rights Code. Landlord can tell lots of unlawful instructions. Remember: a realtor will be sued together with his/her landlord client.
2. If you rent a condo unit, learn condo rules first. Know a condo By-Laws. They will overwrite a Residential Tenancies Act.
3. You have to know rules of local Bylaws. As an example, if there is mold in a home, you, as a landlord can fix it, and hand a bill to your tenant. It is absolutely legal. However, tenants can refuse to pay it.
4. You got to know PIPEDA (Personal Information Protection and Electronic Documents Act). Don’t set yourself up for troubles. Put a special clause into your Additional Terms of the Lease to protect yourself as a landlord. What is this special clause/s? Contact a paralegal or your realtor.
5. As a landlord you have to know fire code, electrical code, building code. You won’t believe, but there is even Dog Owners’ Liability Act.
6. Look through a Health Code.
7. Do you own a corporation? It is better to know the basics of Ontario Business Corporation Act.
8. What about a Safe Drinking Water Act? Vet Control? Municipal licensing? Did you look into them?
If you do not have time for all this reading, a good advise will be to work with a realtor who knows what he is doing. Realtors have a duty of care. This is a complex of knowledge and expertise that they must demonstrate through their work with clients.
If you need a professional advice on real estate purchase, I’m available to help you. Just give me a call and we will talk.