My tenants have calculated 6% interest for two years (2010-2012) and the cost of emergency electrical work, and have discounted their rent owing for the month. I was never contacted about this and was not given a bill. How should I proceed?

With regards to the first issue of interest payable on the last month’s rent deposit, tenants are allowed to deduct from the rent any interest that is owed to them. However, the interest rate is no longer 6%; that changed as of January 31, 2007 when there were amendments to the law. The interest rate is now equal to the rent increase guideline for each year. The rate for 2016 was 2.0%, 2017-1.5% and 2018 will be 1.8%. Even if your agreement stated 6%, you would not have to pay that rate because the law supersedes the agreement.

As for the other issue, in a case of emergency, if the tenant is unable to reach the landlord they may have the necessary repairs done and then present the landlord with the bill. If you were never notified of the problem and did not receive any invoice, you should insist that they provide you with the bill and proof of the problem. If they don’t provide you with anything then you could serve them with a notice of early termination for non-payment of rent (Form N4). This notice gives the tenant 14 days to pay and if they don’t, you can file an L1 application with the Landlord and Tenant Board for them to make a decision on this issue. The cost of filing is $201 (in-person) and $186 (online through e-File).

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