A/C In The Summer – Can Landlords Charge More?

We’ve all been there – a heatwave in the middle of the summer. Relying on airconditioning has become much more of a necessity than a luxury.

Does a landlord have the right to charge extra for air conditioning? What if your hydro fees are included in your rent?

In short, yes. But there are a few exceptions to this.

Under section 123 of the Residential Tenancies Act, a landlord is legally allowed to charge you for the use of an air conditioner. This section allows for a landlord to increase the rent if both the tenant agrees to the addition of a “prescribed service”. If a clause for extra charges is not in the lease, the landlord must get the tenant to pay an increase in rent but will have to go to the Landlord & Tenant board to enforce it.

If a landlord is to charge for additional electricity, it must be included in the monthly rent cost. It cannot be a lump sum for the entire month, and the maximum increase should amount to the cost of the actual service the landlord is providing. A reasonable amount must be negotiated if the exact price cannot be determined.

An illegal charge would be if a landlord were to charge a tenant for an A/C unit that they did not previously charge for.

If you’ve been asked to pay an illegal charge, you may have it resolved here: https://www.sjto.gov.on.ca/documents/ltb/Tenant%20Applications%20&%20Instructions/T1.pdf    


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Landlords: Is An Inspection Report Important On Move-In & Out Days?

“One Ontario resident learned the hard way about the importance of inspections. When she initially moved in, neither she nor her landlord formally inspected the property. When she moved out, she found herself legally and financially responsible for removing a wall that the previous tenants had constructed in the unit.”
It is critical that the condition of the rental unit be documented on moving day.
This will help:
  • Note previous damage
  • Establish a baseline to evaluate normal wear and tear
  • Decide who is responsible for paying for any potential damages that might occur in the future.
For tenants, it will also waive any liability for damages that existed prior to moving in.
Tenants and landlords should always conduct the move-in inspection together.
[call-out: Did you know? In some provinces, the security deposit is only repayable if the move-in inspection matches the one completed upon moving out.]
Located in British Columbia or the Yukon?  (not Ontario)
A Condition Inspection Report is required by law. Both the tenant and landlord should complete, sign and date the form at move-in and move-out.
Final inspections
When a tenant moves out, the Move-in Report will come in handy.  Refer to the initial inspection that was completed upon moving in, and compare it with the condition of each room on moving out.
We strongly recommend taking photos prior to move in, ever little bit helps to avoid confusion at move out.
Ask your Sutton Realty for any photos available from the time you listed the property.

Office Training: Rental Review Time – June 11th & 12th!


Isn’t it funny how intricate a little rental agreement can be! Sometimes a rental deal can feel like more work than a sale. Let’s go over all the bumps that come up during before, during and after the lease agreement is signed.

Please RSVP by online here: https://www.surveymonkey.com/r/P22VSJS

 Or call the office and let us know!
416-896-3333 / 905-896-3333

Airbnb will Start “Designing” Houses in 2019

Airbnb’s founders are launching a new initiative called Backyard, “an endeavour to design and prototype new ways of building and sharing homes” says chief product office and cofounder Joe Gebbia.






After successfully creating a global network of more than 5 million homes, castles and treehouses for rent, their business is worth an estimated $38 billion! The goal is to become not just the company that provides the housing but the company that provides the houses.

The first wave of test units will be going public in 2019. Small prefabricated dwellings could be in the roadmap, but so are green building materials, standalone houses, and multi-unit complexes. Gebbia says there is a moral imperative to ensure that new homes are designed well, with a small environmental footprint. The spaces will be designed to be shared, from the ground up. It means creating spaces that evolve and reconfigure to the occupant’s changing needs (Think walk in-closets that expand out of flat walls, and beds that can drop down from the ceiling on a whim).

Gebbia says “It’s too early to say,” how much a Backyard house will cost, but based on his comments and the looks of Airbnb’s models, it seems likely that Backyard will be a housing system that can be tailored to particular contexts rather than one, perfect, prefabricated home. And you don’t need an Airbnb host to buy into the initiative. Their goal is to see Backyard get as big as Airbnb itself.


For more on this article, check out the link source below:


Rental Income could now help you Qualify for a Bigger Mortgage as CMHC changes rules

Rental Income could now help you Qualify for a Bigger Mortgage as CMHC changes rules


The rules around the income from rental units considered in home loan applications submitted to the CMHC are changing.

The agency announced Monday that, as of September 28th, it will allow 100% of the rental income from a unit to be considered for new loan applications submitted to it for mortgage insurance.

What this means is that a secondary rentals suite’s income, minus costs including property taxes, will boost the size of the loan that buyers can secure.

In order to qualify, units must have maintainable income, proven by two years of rental rent payments. These payments will be averaged to evaluate the unit’s income. Applicants will also need a credit rating of at least 680.

Properties with more than a single rental unit will have somewhat different guidelines and this change is most positive for homeowners with one rental unit.

Looking for an investment property in the Toronto or GTA Area?   Call Sutton Today!


Sutton Group Realty Systems Inc., Brokerage

Mississauga Office: 905-896-3333
Toronto Office: 416-896-3333

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