Ontario has introduced several amendments to the Residential Tenancies Act (RTA) and Landlord and Tenant Board (LTB) processes through Bill 60 and Bill 97. The reforms, which took effect July 1, aim to reduce delays, improve consistency, and strengthen compliance across the rental housing sector. While many landlords will welcome the faster procedures and efficiencies, several changes are expected to create new operational challenges.
“There are some significant positive changes and many nuanced amendments to current procedures,” said Joe Hoffer, Counsel, Cohen Highley LLP. “For landlords, it means staff training and tweaks to policy and procedures in house. The bigger changes will require landlords to educate themselves and their staff to avoid exposure to financial loss arising from missed deadlines or missteps in properly interpreting the rights of landlords vs. tenants, particularly when it comes to the new air conditioning rules and requirements.”
One significant rule change is the reduction in the deadline for requesting a review of an LTB order. Previously, parties had 30 days after receiving an order to request a review. That period has now been cut to 15 days, in an effort to reduce prolonged uncertainty and help decisions move toward resolution more quickly.
“Landlords with successful orders for rent arrears or evictions may benefit from fewer opportunities for delay,” Hoffer said – adding that parties can still request a review after the 15-day deadline, but they must also apply for an extension of time and explain why the deadline was missed. Related timelines for Above Guideline Increase (AGI) applications have also been adjusted to align with the shorter review period.
More limited grounds for reviews
The province has also narrowed the circumstances in which final LTB decisions can be reviewed. Reviews are now intended to address genuine procedural issues, significant errors, or exceptional circumstances, rather than functioning as a routine second hearing. According to the new rules, a review may be granted where a party was unable to reasonably participate in the original hearing—for example, because they did not receive proper notice, were affected by an LTB error, received misleading information, or experienced a serious emergency such as hospitalization, severe illness, a death in the immediate family, incarceration, incapacity, or a natural disaster.
Reviews may also be available where there was a significant flaw in the hearing process, including breaches of procedural fairness, jurisdictional errors, material errors of law or fact, or remedies that fall well outside the range of what would ordinarily be considered appropriate. In addition, a review may be permitted where important new evidence emerges that was unavailable during the original proceeding and could not reasonably have been obtained earlier.
For landlords, these changes should reduce review requests filed primarily to delay enforcement, while preserving an avenue of relief for parties with legitimate procedural concerns or exceptional circumstances.
Mandatory payment agreement forms
The province has standardized the documentation required for rent arrears repayment arrangements. Moving forward, when landlords and tenants reach a repayment agreement before a hearing under section 206 of the RTA, they must now use the official LTB Payment Agreement Form and submit it before the hearing.
While largely administrative, the requirement should reduce misunderstandings by creating a clear and consistent record of repayment terms. Property owners should update their arrears recovery procedures to ensure the form is used whenever applicable.
Increased penalties for non-compliance
Maximum fines under section 236 of the RTA have increased significantly: individual penalties have doubled from $50,000 to $100,000, while corporate penalties have increased from $250,000 to $500,000.
Although these fines are generally reserved for serious violations, the increases signal stronger enforcement and greater accountability within Ontario’s rental housing sector. Landlords should review compliance practices, provide staff training, and seek professional advice when handling complex tenancy matters.
New rights for tenant-installed ACs
Perhaps the most significant operational change for Ontario landlords relates to tenant-installed air conditioners. Under the new rules, tenants have a statutory right to install a window or portable air conditioner in units where the landlord does not provide air conditioning, provided certain requirements are met. Before installation, tenants must notify the landlord in writing and, where electricity is included in the rent, provide any available information about the unit’s energy efficiency and anticipated electricity consumption.
Any air conditioner installed by a tenant must comply with applicable municipal bylaws and safety requirements, be securely installed, and be maintained in a way that does not damage the rental unit or residential complex. However, while intended to improve tenant comfort during periods of extreme heat, the new rules have raised concerns among landlords, particularly those operating older buildings with limited electrical capacity.
Importantly, these rights override lease clauses that prohibit air conditioners. If the legal requirements are satisfied, tenants may install a window or portable unit even if the lease says otherwise. The rules also apply to many air conditioners installed before July 1, 2026, although notification and energy-information requirements do not apply retroactively. Landlords may still pursue approved seasonal air-conditioning charges through the regular rent arrears process where permitted by law.
Impacts on housing providers
While the new rules aim to improve tenant comfort during increasingly frequent heat events, they have raised concerns across the rental housing industry. Many older apartment buildings were not designed to support widespread use of tenant-installed air conditioners. Owners are concerned about electrical capacity, fire safety risks, infrastructure strain, and potential liability if building systems cannot safely accommodate increased demand.
Industry organizations, including the Federation of Rental Housing Providers of Ontario (FRPO), have urged the government to provide additional guidance, particularly for older buildings with limited electrical capacity. Until further clarification is available, landlords should evaluate their building systems, document any capacity concerns, and consult qualified electrical professionals where necessary.
As the new measures take effect, Hoffer advises landlords to review policies and procedures to ensure compliance. Key priorities include adapting to the shorter review timelines, understanding the stricter review criteria, implementing mandatory payment agreement forms, strengthening compliance practices in light of higher penalties, and establishing procedures for managing tenant-installed air conditioners.
“Property owners who proactively adjust their operations will be better positioned to reduce risk, improve efficiency, and navigate Ontario’s evolving rental housing landscape,” he said.
