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RTA

Insight: Rental Market Reform

Landlords and tenants can both agree that the current Residential Tenancies Act is a major barrier to an equitable and fair rental marketplace. The LTB is seen as a major headache for everyone involved, both prospective Landlords, Tenants and new homeowners. OREA has been proposing a report that outlines achievable updates and goals for a revised RTA, that truly encompasses the realities of today’s rental market.

The goal being to have a fair system that allows for more rental units to be available, with fair market pricing, tools to enable the removal of bad players from the system, and streamlining of the court system to reduce the unrelenting delays that are causing major financial harm.

OREA’s report is summarized below.

Creating Modern Legislation That Works

Ontario’s outdated Residential Tenancies Act, 2006 (RTA), no longer reflects the realities of today’s rental market. Modernization is essential to reducing tribunal backlogs, expanding rental supply, and creating fairer outcomes for both tenants and landlords.

Action-Ready

  • Create a dedicated N12 process for buyers’ personal use to speed up timelines and reduce delays.

  • Strengthen monitoring, enforcement, and penalties against bad-faith N12 evictions.

  • Develop clear, accessible resources to educate both landlords and tenants on their rights and responsibilities under the RTA.

  • Mandate the equal treatment of all individuals under the Condominium Act, 2016, to be inclusive of diverse families.

Long-Term

  1. Review and modernize the RTA to reflect today’s rental market.

  2. Reform rent control by implementing a phased-in approach to balance tenant protections with incentives for new rental supply.

2

Fixing the Broken Landlord and Tenant Board

Ontario’s Landlord and Tenant Board (LTB) is overwhelmed by backlogs and delays, eroding trust and discouraging new rental supply. Urgent reform is essential to restoring fairness, accessibility, and timely justice for both tenants and landlords.

Action-Ready

  1. Move away from the current digital-first strategy and restore in-person hearings as the default.

  2. Improve legal aid support for tenants.

  3. Remove financial barriers for tenant maintenance complaints filed in good faith.

  4. Establish a timely LTB application screening process to identify and remedy errors early.

Long-Term

  1. Find new opportunities to support mediation services between landlords and tenants at the LTB.

  2. Improve LTB adjudicator training, recruitment, and retention strategies.

3

Building a healthy and diverse housing supply

Ontario’s rental supply has fallen far behind demand, leaving families with too few affordable options. Tackling high costs, zoning barriers, and stalled purpose-built development is critical to ensure the market meets the needs of people in every stage of life.

Action-Ready

  1. Reduce government-imposed costs on new rental projects.

  2. Streamline the permit process for new construction.

  3. Promote and help scale innovative approaches to affordable housing development.

  4. Investigate legislative changes needed to provide rent-to-own programs in Ontario.

  5. Provide tax incentives for small landlords who provide new rental units in rapidly growing markets.

  6. Provide a rental renovation tax credit for smaller, independent landlords who invest in specific improvements to their rental properties while keeping monthly rent costs consistent.

Long-Term

  1. End exclusionary zoning across Ontario.

  2. Invest in building 99,000 community housing units over the next 10 years.