If the LTB finds that I need to compensate my former tenant, who has filed a T2 for reasons #3 and #4, could they also charge me, or fine me, and have me pay penalty money?

Reading the Landlord and Tenant Board’s Interpretation Guideline 16 in the linked information will give you a good sense of when the Landlord and Tenant Board will typically issue a fine: https://tribunalsontario.ca/documents/ltb/Interpretation%20Guidelines/16%20-%20Administrative%20Fines.html

As you can see, it says, “This remedy is not normally imposed unless a landlord has shown a blatant disregard for the RTA and other remedies will not provide adequate deterrence and compliance.” Typically the Board member must be satisfied that the landlord knowingly disregarded the law for their own ends, before issuing a fine of any kind.

Since there is no certainty about you even getting a fine, I also suggest that you do not focus on the amount of fines available, as they are very rarely the maximum amount, and are simply impossible to predict.

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