Although not very common in practice, Property Managers have been able to represent their clients without the need for legal representation. This was a great method to resolve simple issues such as non-payment of rent; however, this has now changed!
Based on the attached ruling from the Law Society of Upper Canada, the Residential Tenancy Act (RTA) is not to be interpreted to allow a paid Property Manager to represent their clients at a hearing. They will require legal representation for all Landlord and Tenant Board application.
This ruling will not have a major effect on large corporations who use legal representation for all matters; however, it will dramatically escalate costs for smaller property management firms and independent landlords.
I respect and appreciate the concept that such rulings and laws are designed and put in place to resolve larger, significant issues. Unfortunately, there is only one set of rules that all landlords must follow and abide by. The end result is the smaller property management firms and independent landlords are now part of the same playing field as larger corporations. It no longer matters if you have one single dwelling house or five large rental buildings; everyone must abide by the same law!
The Province of Ontario continues to make it more and more difficult for smaller property management firms and independent landlords to make a profit based on the above mentioned ruling and resulting expenses. For example: an average of three months is required for an eviction along with a rental increase capped at 2.5%. Costs and expenses continue to escalate and at the same time hands are tied! On a side note, I will try my best to control my thoughts about the above mentioned rental increase guideline that costs a landlord $200.00!
Landlords need to take action! I feel that this issue is just the tip of the iceberg resulting in additional and a series of changes against the smaller property management firms and independent landlords!
I plead with each of you to speak up and act out! Kindly begin by reading and hopefully signing the petition in the following link! Know that it is a step in the right direction!