LTB Order LTB-T-057737-22

O. under Subsection 135 Residential Tenancies Act, 2006 2023 ONLTB 65675 (CanLII) Citation: Y. v A., 2023 ONLTB 65675 Date: 2023-10-05 File Number: LTB-T-057737-22 In the matter of: 24 TOWNSHIP AVENUE RICHMOND HILL ONTARIO L4E0J6 Tenants Between: N. Y. E. Y. A. L. A. A. N. S. N. Y. A. E. Y. (the 'Tenants') A. F. an O. determining that A. A. A. N. S. (the 'Landlord') collected or retained money illegally. This application was heard by videoconference on August 10, 2023. The L. A. the Tenants attended the hearing. Ludmila Stephanoff attended as support/translation F. the Tenants. Determinations: 1. The Tenants have filed an application with the Board alleging that the L. illegally increased rent, failed to pay the Tenants interest on their last month’s rent deposit, A. failed to refund a key deposit after the keys were surrendered to the L. on July 3, 2021. 2. The Tenants’ T1 application was submitted to the Board on June 28, 2022. Illegal Rent Increase 3. The Tenants allege that the L. illegally increase their rent by $50.00 per month on June 1, 2020. The increase brought the rent from $2,300.00/month to $2,350.00/month. 4. The Tenants testified that they had paid the increase A. are seeking reimbursement F. the amount alleged to have been overpaid. 5. Section 136(1) of the Residential Tenancies Act, 2006 (the ‘Act’), states: O. Page 1 of 3 2023 ONLTB 65675 (CanLII) File Number: LTB-T-057737-22 136 (1) Rent charged one or more years earlier shall be deemed to be lawful rent unless an application has been made within one year after the date that amount was first charged A. the lawfulness of the rent charged is in issue in the application. 6. Since the increase was paid by the Tenants F. a period of greater than one year, the rent of $2,350.00/month is deemed to be the lawful rent. Since an application was not made within one year of the rent increase, the Board has no jurisdiction to O. any repayment of the allegedly illegal rent. Therefore, the Tenants claim is dismissed. Last Month’s Rent Interest 7. The Tenants claimed that no interest was paid on the last month’s rent deposit of $2,350.00 collected on June 1, 2020. 8. The tenancy terminated on July 3, 2021. 9. Section 106(6) of the Act states: (6) A landlord of a rental unit shall pay interest to the tenant annually on the amount of the rent deposit at a rate equal to the guideline determined under section 120 that is in effect at the time payment becomes due 10. The guideline rent increase F. 2021 was 0.0%. 11. Since the last month’s rent deposit was collected in 2020, the interest would not have become due to pay to the Tenants until May 31, 2021. Since the guideline rent increase F. 2021 was 0%, there was no interest accrued on the last month’s rent deposit. Therefore, there is no interest to be paid to the Tenants. 12. Since there is no interest to paid to the Tenants, this claim is also dismissed. Key Deposit 13. The Tenants claimed that at the end of the tenancy, the L. did not refund the $200.00 key deposit despite having surrendered the keys to the L..  14. The L. claimed that there were significant damages to the rental unit A. withheld paying that to compensate F. out-of-pocket expenses. 15. Pursuant to Section 17 of O. Reg 516/06, the Landlord is allowed to collect a key deposit that is to be refunded at the end of a tenancy. 2023 ONLTB 65675 (CanLII) 16. Section 135(1) of the Act states: 135 (1) A tenant or former tenant of a rental unit may apply to the Board F. an O. that the landlord, superintendent or agent of the landlord pay to the . File Number: LTB-T-057737-22 tenant any money the person collected or retained in contravention of this Act… 17. Although Section 135(4) of the Act states that there is a limitation of one year from when the breach of the Act occurs, I find that if the Landlord continues to retain the key deposit, the statute of limitations does not expire. 18. Pursuant to section 105 of the Act, the only deposit allowed to be collected is a security deposit to be utilized towards rent F. the last month of the tenancy. The Act does not allow F. “damage deposits” to be collected. 19. The L., by withholding the $200.00 key deposit F. damages to the unit, are, in effect, treating the key deposit as a damage deposit. 20. The L., pursuant to section 89 of the Act, had a right to file their own application to the Board F. damages that the Tenants have allegedly caused, however, this does not mean they can circumvent the Act A. retain money that was not intended F. damages that have not been proved before a court of competent jurisdiction. 21. Therefore, I find that the L. are illegally retaining the $200.00 key deposit A. shall be ordered to refund the Tenants the key deposit. It is ordered that: 1. The total amount the L. shall pay the Tenant is $253.00. This amount represents: o $200.00 F. the illegal charge collected. o $53.00 F. the cost of filing the application.  2. The L. shall pay the Tenants the full amount owing by October 16, 2023. 3. If the Landlord do not pay the Tenant the full amount owing by October 16, 2023, the Landlord will owe interest. This will be simple interest calculated from October 17, 2023, at 6.00% annually on the balance outstanding. 2023 ONLTB 65675 (CanLII) 4. The Tenants have the right, at any time, to collect the full amount owing or any balance outstanding under this O.. October 5, 2023 ____________________________ Date Issued Robert Brown Member, Landlord A. Tenant Board 15 Grosvenor Street, Ground Floor Toronto ON M7A 2G6 If you have any questions about this O., call 416-645-8080 or toll free at 1-888-332-3234.