Bill 97 Is Finally Here — Well, Almost. Part III
On June 8, 2023, Bill 97, Helping Homebuyers, Protecting Tenants Act, 2023[1] (“Bill 97”) received Royal Assent. Among other Acts, Bill 97 sought to amend the Residential Tenancies Act, 2006[2] (“RTA”) on various issues. However, none of those amendments came into force in 2023. In fact, the province did not even announce a start date. As a result, the proposed changes did not become law, and landlords waited without a clear timeline. Until now.
July 1, 2026 is the date on which some, but not all, items within Bill 97 will change the RTA. In this article, the landlord’s legal team at Gobin & Leyenson LLP identifies one of the changes that become law on July 1, 2026, and explains how it affects residential landlords in Ontario. Follow us on social media to learn more and empower yourself as a residential landlord to make informed decisions about your rental investment property. Read our other articles HERE.
Landlords can face charges under the RTA and the Provincial Offences Act with double fines. This article focuses on some of the common charges and how Bill 97 increases the associated fines.
Offences with “Knowledge”
Landlords may be charged with a provincial offence under the RTA
A landlord “knowingly” committing an offence under the RTA may be found guilty. For example,
- Knowingly changing the locks without giving a key to the tenant
- Giving false information in or about an eviction notice.
- Taking back the rental unit without following the RTA rules.
- Harass or threaten a tenant, causing them to leave.
Other Offences
Some offences do not require knowledge, for a charge or a conviction. These include:
- Illegally entering a rental unit.
- Failing to pay interest on a last month’s rent deposit.
- Not providing a rent receipt.
- Charging illegal amounts.
Harassment and Interference
A landlord or their agent can be found guilty of an RTA offence if they knowingly harass a tenant. This also applies if they interfere with a tenant’s reasonable enjoyment of the rental unit or building.
What Else?
An attempt to commit an RTA offence can lead to charges and a conviction. Corporate landlords are not protected. Directors and officers of a corporation can be charged, if they knew about an offence and allowed it to happen without acting to stop it.
Authorities have two years to charge a landlord after they learn about an offence. For some offences, the deadline is two years from when the offence happened. It’s important to note that an RTA conviction is not a criminal record. It is a provincial law, so there is no risk of jail time.
Investigators from the Investigation and Enforcement Unit (IEU) typically lay these charges. This unit is part of the Ministry of Municipal Affairs and Housing. In serious cases, police may get involved.
What Changes on July 1, 2026?
Currently, an individual landlord, director, or officer found guilty of an RTA offence could pay a fine of up to $50,000. A corporation could pay up to $250,000. Starting July 1, 2026, these fines will double. An individual found guilty could face fines of up to $100,000. A corporation could face fines of up to $500,000. With higher fines, the Investigation and Enforcement Unit will likely investigate RTA offences more actively. Landlords should get legal help immediately if the IEU contacts them with questions or accusations.
Disclaimer
Landlord legal team at Gobin & Leyenson LLP invites you to follow us on social media, and stay updated on the changes and new cases which impact residential landlords in Ontario. This article provides general information only. It is not legal advice. Contact Gobin & Leyenson LLP for advice specific to your situation.