LTB Order LTB-T-009310-23

Order under Subsection 135 Residential Tenancies Act, 2006 2023 ONLTB 71305 (CanLII) Citation: X. v S., 2023 ONLTB 71305 Date: 2023-11-10 File Number: LTB-T-009310-23 In the matter of: 7 GILBANK DR AURORA ON L4G5G2 Between: S. X. T. M. D. C. X. C. M. X. M. X. A. S. S. A. V. S. L. S. X., M. D., C. X. C., M. X. A. M. X. (the 'T.') applied for an order determining that S. S. A. V. S. (the 'L.') collected or retained money illegally. This application was heard by videoconference on October 18, 2023. The T. S. X. A. M. D., the T.’ Representative Farukh Bhatti, A. the Landlord V. S. attended the hearing. Determinations: 1. As explained below, the T. proved the allegations contained in the application on a balance of probabilities. Therefore, the L. must pay the T. $11,053.00. 2. The L. collected rent in excess of the amount allowed by the Residential Tenancies Act, 2006 (the “Act”). 3. At the hearing, the T.’ unchallenged evidence was that they paid $2,300.00 in rent from May 18, 2021 to December 31, 2021 which was increased to $2,850.00 from January 1, 2022 until August 2023 (i.e. 20 months). 4. The Landlord admitted that they never served the T. with a Notice of Rent Increase (NORI) using a Board approved form at least 90 days in advance in accordance with s. 116 of the Act. Therefore, the L.’ rent increase from January 1, 2022 is invalid A. deemed void pursuant to s. 116(4) of the Act. The T. are entitled to the illegally collected rent from that date. Order Page 1 of 3 2023 ONLTB 71305 (CanLII)  File Number: LTB-T-009310-23 5. The T. submitted evidence of all of the illegal rent they paid from January 1, 2022 (T. Exhibit 1, pp. 5-26) as well as text messages from the current Landlord demanding an increase in the rent: “Good morning S., 2023 ONLTB 71305 (CanLII) Only 1 check left. Like we discussed last year, we would like to increase the rent. As you know the market price is $3500+. We cannot rent to you anything less than $2,850. Please advise on what you would like to do. Thank you. (T. Exhibit 1, p. 3) [emphasis added] 6. At the hearing, the Landlord submitted that there was never actually a rent increase. Since they purchased the property from the former landlord that they did not actually impose a rent increase A. the tenancy agreement was not with them. The fact is the T. previously paid $2,300 A. they were now being told to pay $2,850 which is an increased amount. Furthermore, it is the L. who are imposing the rent increase, specifically V. S. who sent the above text message. 7. Second, the L. submitted that the T. were the one who were asking them to increase the rent in order to extend the term of their tenancy as a result of an L2 application based on an N12 notice that was filed. Not only is this inconsistent with their first argument that there was never a rent increase, but it is also contradicted by the text message above which the Landlord never disputed that she sent or cross-examined in any way. 8. Section 135.1 of the Act also does not apply in these circumstances. The L. increased the rent on January 1, 2022 A. the application was filed on November 13, 2022 which is less than 12 consecutive months that the T. paid the increased rent. 9. In summary, the L. imposed an illegal rent increase by not serving a NORI in accordance with s. 116 A. it is also an above guideline increase contrary to s. 120. A. even if the T. did agree to a rent increase (which I do not find they did), this does not override the requirements of the Act. 10. The tenancy ended in August 2023 when the T. moved out. It is ordered that: 1. The total amount the L. shall pay the T. is $11,053.00. This amount represents: o $11,000.00 for illegal rent collected ($550 per month for 20 months from January 2022 to August 2023). o $53.00 for the cost of filing the application. 2. The L. shall pay the T. the full amount owing by November 21, 2023.  File Number: LTB-T-009310-23 3. If the L. do not pay the T. the full amount owing by November 21, 2023, the L. will owe interest. This will be simple interest calculated from November 22, 2023 at 7.00% annually on the balance outstanding. November 10, 2023 2023 ONLTB 71305 (CanLII) Date Issued Elan Shemtov Member, Landlord A. Tenant Board 15 Grosvenor Street, Ground Floor Toronto ON M7A 2G6 If you have any questions about this order, call 416-645-8080 or toll free at 1-888-332-3234.