Under the Ontario Residential Tenancies Act (RTA), a new landlord or property management company legally inherits your existing lease and any formal rent reductions. If they refuse to honour your credits, you can file a T2 or T1 application at the LTB, which costs $48 CAD online, to enforce your rights.
When a residential apartment building in Ontario is sold, or when a landlord switches to a new property management company, the transition is rarely seamless for the tenants. Whether you live in a high-rise in Mississauga, a duplex in Ottawa, or a townhouse in Kingston, new management teams often swoop in trying to maximize profits. A common tactic is “accidentally” losing the paperwork for previous rent discounts, parking credits, or maintenance rebates that you negotiated with the previous owner. Suddenly, you receive a notice demanding hundreds of dollars in “unpaid” rent.
Many tenants panic, assuming that a change in ownership voids all previous verbal or written agreements. ⚠ This is entirely false. Under Section 18 of the Residential Tenancies Act, “covenants run with the land.” This legal principle means that whoever buys the property steps exactly into the shoes of the previous landlord. They are legally bound by every single term, discount, and lawful agreement you had with the old owner. If a new management company is harassing you for money you do not owe, you have clear legal avenues to force them to back down.
Step-by-Step Process for Enforcing Rent Credits in Ontario
You should never simply stop paying your rent out of frustration, as this gives the new management grounds to file for an eviction. Instead, you must communicate clearly and, if necessary, escalate the matter to the Landlord and Tenant Board (LTB).
Step 1: Gather Your Paper Trail
The burden of proof will ultimately rest on you to show that the rent credit exists. 🔍 Before contacting the new company, gather your evidence. This includes your original lease (which may list a prompt payment discount), emails or text messages from the previous landlord confirming a rent reduction (e.g., for doing landscaping work), or a history of bank transfers proving you have only paid the discounted amount for the past year without issue.
Step 2: Send a Formal Written Notice
Draft a polite but firm letter or email to the new property management company. Inform them of the existing agreement, attach copies of your evidence, and remind them of Section 18 of the RTA. State clearly that you will continue paying your lawfully discounted rent and that any attempts to collect “arrears” regarding this specific credit will be viewed as harassment.
Step 3: Continue Paying the Lawful Rent
Do not withhold your base rent. 💳 You must continue paying the amount you legally owe (minus your valid credit) on the first of every month. If the new management refuses to accept your cheque or blocks your e-transfer in protest, set that money aside in a separate bank account. You must be able to prove you attempted to pay.
Step 4: File a T1 or T2 Application with the LTB
If the new company issues you an N4 eviction notice for unpaid rent, or continually harasses you, you must take the offensive. You can file a T2 Application (Tenant Rights) for harassment, and a T1 Application (Rebate) if they somehow forced you to overpay. The LTB adjudicator will review your evidence and can issue a binding order forcing the new landlord to honour the old agreement and stop the harassment.
How Much Does it Cost in Ontario?
Defending your rights at the LTB is designed to be affordable for tenants. 💰 You do not necessarily need to hire an expensive law firm, though paralegals can be very helpful.
| Application / Service | Estimated Cost (CAD) | Details |
|---|---|---|
| LTB T1 or T2 Filing Fee | $48 online / $53 paper | Provincial fee to file a tenant application. Often waived if you are low-income. |
| Tenant Duty Counsel | Free ($0) | Legal Aid Ontario provides free advice and mediation on the day of your hearing. |
| Hiring a Paralegal | $500 – $1,500+ | Optional. A licensed Ontario paralegal to build your case and speak for you. |
If you win your case, you can explicitly ask the LTB adjudicator to order the new property management company to reimburse you for the $48 filing fee.
How Long Does the Process Take?
Resolving the issue through a well-drafted letter with evidence usually takes just a few days or weeks. ⏰ However, if the management company is stubborn and you must file a T1 or T2 application, waiting for an LTB hearing date currently takes between 6 to 12 months in Ontario. During this waiting period, you should continue paying your lawfully reduced rent amount and keep immaculate records of every interaction.
Frequently Asked Questions (FAQ)
Do I have to sign a new lease with the new owner?
No. You are never required to sign a new lease just because the building was sold or management changed. Your existing lease, even if it has transitioned to a month-to-month tenancy, remains 100% valid.
What if my agreement with the old landlord was just verbal?
Verbal agreements are legally binding in Ontario, but they are very hard to prove. You will need to rely on circumstantial evidence, such as showing your bank statements where you consistently paid $100 less for two years without the old landlord ever complaining.
Can the new owner raise my rent to market price?
No. The new owner is bound by the provincial rent control guidelines (unless the building was first occupied for residential purposes after November 15, 2018). They must give 90 days’ notice using an N1 form for a standard guideline increase.
What if the new company issues an N4 notice for the “missing” rent?
An N4 is just a notice, not an eviction order. If they file an L1 application with the LTB based on that N4, you will attend the hearing and show the adjudicator your proof of the rent credit. The adjudicator will likely dismiss the landlord’s case.
Can a new landlord take away my included parking spot?
No. If parking, storage, or utilities were included in your rent under the old landlord, the new landlord cannot suddenly start charging you extra for them or take them away without legally reducing your rent accordingly.
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