The information provided is not legal advice. Landlords and tenants should consult the Residential Tenancies Act directly, or seek legal advice if they feel they need a legal opinion.

More information:
Call 311
Landlord and Tenant Board 416-645-8080
Residential Tenancies Act

I received the notice from the City. How much should I reduce my rent?
The percentage by which you are permitted to automatically reduce your rent is set out in the box in the middle of your notice. For example, if the percentage is 1.65%, and the monthly rent is $800, the calculation of rent reduction is like this:
The monthly rent reduction is:  $800 x 0.0165 = $13.20

The new monthly rent is: $800 - $13.20 = $786.80.

If you find this arithmetic difficult, contact 311 for help.
While you do not have to ask your landlord for permission or apply to the government to get this rent reduction, it is a good idea to confirm with your landlord that your calculation is correct.

Does the rent reduction apply to separate charges such as parking?
Rent includes the charge for the unit and any charges that may be made separately for services or facilities, such as parking. Therefore the rent reduction also applies to separate charges.

Why is the property tax reduction multiplied by 20% for residential properties that have 7 or more units and by 15% for properties with 6 units or less?
These rules are set by provincial legislation. A municipality is not permitted to change them.

The Province estimates that property taxes for residential properties with seven units or more make up about 20% of the landlord's total rental revenue, and property taxes for smaller properties make up less than 20% of the total rental revenue.

Either the landlord or the tenant can apply to the Landlord and Tenant Board to change the amount of the rent reduction where the amount the landlord pays in property taxes is not equal to 20% (multi-residential properties) or 15% (residential properties) of the rental charge.
Contact the Board for more information about making an application to vary a rent reduction.

How can I find out if my building was notified of a rent reduction?
You can find out whether or not your building was notified by checking the online database.

What can I do if I lost my notice?
Contact 311. Operators can help you to get a replacement.  

What should I do if I believe the tax or rent reduction information in the notice sent in December is incorrect?
Either the landlord or the tenant may apply to the Landlord and Tenant Board to change the amount of the rent reduction.

Contact the Board for more information about making an application to vary the amount of a rent reduction. The deadline for making this application is no later than March 31 of the year following the date the rent reduction took effect (i.e., if the rent reduction takes effect December 31, 2012, you must apply before March 31, 2013).

Why didn't I get a notice?
Notices are sent to tenants if the property had a tax decrease between 2011 and 2012 that was greater than 2.49% AND the building is not exempt from the rent regulation rules of the Residential Tenancies Act.

Therefore, you may not have received a notice if:

• the property taxes for your building increased
• the property taxes for your building decreased by 0.01% to 2.49%
• you live in housing that is exempt from the rules that regulate rents in the Residential Tenancies Act.

You can check what happened to property taxes on your building by looking at the online database.

What buildings are exempt from the Notices of Rent Reduction?
Exemptions are listed in the Residential Tenancies Act, and some housing is not covered by the Act at all.

Examples of housing that is exempt from all provisions of the Residential Tenancies Act:

1. Living accommodation intended for the travelling public (e.g. motels, hotels, vacation homes)
2. Emergency shelters
3. Living accommodation provided as a condition of employment under certain circumstances
4. Living accommodation where occupants share a bathroom or kitchen with the owner or a specified member of their family
5. Living accommodation provided for rehabilitative or therapeutic purposes

Examples of housing that is exempt from the Rent Reduction Notice provisions of the Residential Tenancies Act:

1. Social housing
2. Non-profit co-operative housing
3. Rental units provided by educational institutions
4. Rental units provided by religious institutions for a charitable use on a non-profit basis
5. Rental units in buildings first occupied for residential purposes on/after November 1, 1991
6. Rental units first occupied June 17, 1998 or later
7. Homes for special care and developmental services

This is a summary only; refer to the Residential Tenancies Act.

My rent is geared to income, and my building is not exempt.  If I get a notice, can I decrease my rent?
No. The automatic rent reduction only applies to tenants who pay market rent and who live in private sector housing.

I am receiving a housing allowance from the government, and my building is not exempt.  If I get a notice, can I decrease my rent?
Yes. The rent reduction will apply to the full market rent of your rental unit. You should talk to your landlord about this.

I am receiving OW or ODSP, and I live in a private rental building without a rent subsidy.  If I get a notice, can I decrease my rent?
Yes, provided that you are not also receiving a rent geared to income subsidy.

What can tenants do where the tax decrease is less than 2.49%?
Tenants who live in rental buildings with tax decreases of 2.49% or less do not receive a notice from the City. However, they may still apply to the Landlord and Tenant Board for the rent reduction.

The deadline for making this application is December 30 of the year following the date the rent reduction took effect (i.e., if the rent reduction takes effect December 31, 2012, you must apply before December 30, 2013).

If a landlord refuses to allow the rent reduction, what can a tenant do?
If a tenant has received the City notice, he or she can reduce the rent without the need to ask the landlord for permission. If the landlord thinks the reduction is too high, he or she may apply to the Landlord and Tenant Board to vary the amount. This action cannot stop the tenant from taking the rent reduction. Once the Board resolves the matter, the ruling would be effective December 31of the year when the rent reduction originally took effect, and any overpayment or underpayment by the landlord or the tenant would have to be repaid to the other party.

If the rent is not reduced on December 31, the tenant may apply to the Landlord and Tenant Board for an order requiring the landlord to pay back any applicable reduction amount. The tenant must apply no later than December 30 of the year following the date the rent reduction took effect.

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