Rental Housing and COVID-19: Some FAQs
The unprecedented COVID-19 pandemic has raised economic anxieties for everyone across the world. The current public health emergency has impacted the ability of many of us to be able to earn a livelihood and to maintain the basic necessities of life such as housing.
Based on the inquiries we have fielded in the past couple of weeks, this post addresses some frequently asked questions posed by tenants.
Do I still have to pay my rent during the COVID-19 crisis?
Yes. There have been no changes to the Residential Tenancies Act or to the general principles of contract law that would allow tenants to avoid paying rent at this time. Despite Premier Ford’s recent statement that tenants who can’t pay rent don’t have to pay rent, this is presently a legally risky proposition. Absent any future legislative changes, tenants relying on the Premier’s advice may face legal proceedings and evictions down the road.
Can I be evicted for not paying my rent?
Yes, though probably not right away.
The Landlord and Tenant Board has exclusive jurisdiction over residential landlord and tenant disputes. Once the Board issues an eviction order the Sheriff or Court Enforcement Office can enforce the eviction.
On the Ontario Government’s direction, the Board is not presently scheduling eviction hearings for non-payment of rent, and the Sheriff is not enforcing any eviction orders at the moment.
As tenants are still obligated to pay rent in this period, once the moratorium on evictions is lifted, landlords will be able to apply for and enforce eviction orders for any rent owed by a tenant.
Depending on the circumstances, there may be some defences available to tenants, such as if the landlord is in serious breach of its repair or maintenance obligations.
Can I be evicted for any other reason?
Yes. The Landlord and Tenant Board is still scheduling hearings for urgent matters such as eviction applications based on illegal acts or a serious impairment of safety. If proven, the Board will issue eviction orders.
Landlords for the time being are unable to enforce eviction orders as the Sheriff or Court Enforcement Office is not scheduling evictions.
Once this moratorium is lifted, it is possible that the Sheriff will prioritize or expedite the enforcement of such evictions.
What about Rent Strikes?
There has been discussion of rent strikes on social media. Rent strikes are collective political actions that have historically been organized by formal tenant associations or other groups of tenants. It involves a critical mass of tenants withholding their rent in order to inflict economic and reputational damage on the landlord, in the hope that the landlord will give in to some or all of tenant demands.
Striking is a regulated feature of the collective bargaining system for unionized employees in Ontario. Rent strikes, by contrast, are not recognized or condoned by residential tenancy laws under any circumstances, and those participating in rent strikes risk eviction.
Rent strikes are a political strategy, not a legal one. Some organizers believe that it is worthwhile to risk eviction in the name of achieving larger and more durable systemic reforms to housing policy. Tenants must weigh these risks for themselves and their families, especially in the uncertainty of the present situation.
Consider seeking legal advice prior to organizing a rent strike.
What if I just can’t afford to pay the rent?
The Landlord and Tenant Board is required to consider any equitable circumstances in deciding whether to issue an eviction order. It has the authority to grant relief from eviction, meaning the Board can delay or deny an eviction, or impose a repayment plan where it is fair and just to do so.
If a tenant is truly unable to pay the rent because of circumstances related to COVID-19, it is expected that the Board will take this into account. For instance if a tenant was unable to work because they contracted COVID-19, or because they had to care for a sick family member, or because they were laid-off or terminated from their job, the Board will consider this when hearing an eviction application.
The Board is not typically very generous in delaying or denying evictions. But these are not typical times, and it is difficult to predict how the Board (or the courts, on appeal) will deal with these issues.
In the circumstances, it would be advisable for landlords and tenants to deal with each other in good faith in trying to work out reasonable repayment plans for any rent arrears.
Tenants seeking an affordable repayment plan through the Board should be prepared to detail their financial circumstances to the Board and to offer good faith, realistic plans to repay any arrears.
Rental Housing and Human Rights
Under the Ontario Human Rights Code, landlords have a duty to accommodate tenants. If a tenant falls into rent arrears because they are immunocompromised or medically vulnerable during the current pandemic, or because they contract COVID-19, the landlord may have a duty to accommodate such a tenant by entering into a reasonable repayment arrangement.
Human rights law is not within the core of the Board’s expertise, and it will require expert research and advocacy for tenants to demonstrate the landlord’s human rights obligations in the context of rental housing.
Are there any government relief programs specifically geared to helping tenants?
No. The Federal and Provincial governments have announced a raft of measures to assist Canadian workers, businesses and property owners among others. However, no relief measures targeted to tenants have been announced to date.
Tenants may still take advantage of existing programs, such as the Rent Bank that provides interest-free loans to cover rental arrears. Tenants on social assistance can speak to their OW/ODSP workers about accessing discretionary or special services benefits to assist with rental payments.
Tenants who may be unable to cover their rental costs due to the loss of work may be eligible to apply for Employment Insurance or the newly announced Canada Emergency Relief Benefits (CERB) that can entitle them to up to $2000 per month.
Should there be government relief programs for tenants?
We think so. Rental housing is a tenant’s home, and it should be protected as such. Ultimately, however, this is a policy question that can only be addressed in a comprehensive way by the legislatures.
At this time, the Ontario government has called on landlords and tenants to work together to come up with ways to avoid evictions, in a manner similar to banks voluntarily working with homeowners to defer mortgage payments. We think this is an incomplete solution, particularly if the economic impacts of COVID-19 extend for many months, as seems likely.
The government has many policy tools at its disposal if the private rental housing sector is unable to come up with solutions. For example, the government could legislate mandatory eviction relief for rent arrears stemming from the COVID-19 crisis; it could establish a CERB-like fund aimed specifically at rental housing costs; or it could establish government-backed interest-free loans to repay rental arrears similar to what the Business Development Bank of Canada is offering small businesses.
Establishing some targeted relief for tenants may become vital if the government is truly interested in ensuring that no one loses their housing due to the present COVID-19 crisis.
The above is general information. If you require advice about your specific situation, feel free to reach out to us. As experts in rental housing matters, we can advise you on specific legal options, negotiation strategies, defences or human rights issues that might be relevant in your particular situation.
