Khan v Bhagat

Tenant wins · Etobicoke · 2025-08-07

Adjudicator

Sheena Brar

Dispute

Illegal Rent Increase

Amount

<$5K

Landlord

C.B.

Tenant

B.K., A.L.

What happened

The Tenants applied for an order determining that the Landlord collected or retained money illegally. The core of the dispute was whether rent increases implemented in 2024 and 2025 were valid. The Tenants argued they never received the required Form N1 notice, while the Landlord claimed he provided it in person after purchasing the property. The Board examined whether the notice substantially complied with the Act and whether the one-year limitation for challenging increases applied.

The ruling

The Landlord's 2024 rent increase was declared void because the Landlord failed to serve the required Form N1. As a result, the lawful rent reverted to $1,742.50. The Landlord is ordered to pay the Tenants $613.50, which includes the illegally collected rent and the application filing fee. If the Landlord fails to pay by August 18, 2025, the Tenants are authorized to deduct the amount from their September 2025 rent.