Fixing the landlord-tenant dispute mechanism can improve affordability

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Rental housing is scarce in Canada, with more demand. As a result, rents have skyrocketed in the past few years. The solution, of course, lies in quick rental housing, which has proven to be a significant challenge.

The rental supply can be immediately increased if the landlords who own the house make more space available for rent. With an aging demographic and many older people choosing to age, tens of thousands of basements and secondary units could help bridge the gap.

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However, would-be landlords can easily be deterred by broken dispute resolution mechanisms. It takes years for landlords to get relief from violent or dead tenants. Fixing the landlord-tenant dispute mechanism holds promise for improving rental housing affordability in Canada.

Ontario’s Landlord and Tenant Board (LTB) is a broken dispute resolution system. Neither the landlord nor the tenant is satisfied with a function. LTB’s dismal state drew the attention of the provincial Ombudsperson, whose report last year, titled “Administrative Justice Delayed, Justice Denied,” painted a bleak picture of a system in need of immediate improvement.

Backlog of cases in LTB increased from 20,000 in 2020 to 53,000 in March 2023. Data compiled by Tahmeed Shafiq, Toronto-based researchers found that, on average, it takes 342 days for eviction to be resolved for non-payment cases. According to the Ombudsperson, starting in March 2023, it will take up to nine months to schedule a hearing for landlord applicants, while tenant applicants will have to wait up to two years.

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The delay in the LTB affected landlords disproportionately. According to the Ombudsperson report, landlords filed the most complaints (84 percent), while tenants filed only 12 percent. From November 2021, LTB will take three months to process applications, and scheduling hearings for rent collection or evicting tenants who fail will take an additional 66.5 days.

However, averages can be deceiving. The Ombudsperson highlighted the case of a landlord fighting cancer who lived in the basement of his house and rented out the top half. They are looking to evict the tenant in December 2021 to get the space they need to get sick. A few months later, he was asked to resubmit his application due to an error in his initial submission. Tragically, the landlord died before the court could act.

Lack of resources is a significant problem. The Ombudsperson reported that before the investigation, the Court employed 40 full-time and 10 part-time judges. By January 2023, the number of full-time adjudicators has been reduced to 35, while the part-time staff has increased to 43. Due to the increasing caseload and growing backlog, the staffing numbers are clearly inadequate.

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The provincial government appoints judges in Ontario. The Ombudsperson found the appointment process to be complex, involving 122 different steps and taking three to five months for government approval. The Ombudsperson also found that when the adjudicator is changed, months or even years of progress made in the complaint are lost, requiring a new deliberation of the case by a new adjudicator.

In comparison, British Columbia’s The Residential Tenancy Branch (RTB) deals with complaints faster than in Ontario. The website states that the RTB schedule shortens the hearing to 12 days. In urgent matters, hearings can be scheduled within six days.

Wait times and backlogs in British Columbia worsened in 2022 due to an increase in workload, which increased from 1,200 complaints per month in 2020 to 1,832 in 2022. RTB reportedly resolved regular disputes within five weeks in February 2020. But in September 2022, it took time . almost 15 weeks to resolve routine application issues.

Despite longer wait times in British Columbia, disputes are still resolved within weeks and months. In Ontario, it can take years. Inspections from the Landlord and Tenant Board will provide quick relief to frustrated complainants.

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Homeowners in Ontario and elsewhere who may be considering renting out unused space for extra income are deterred by the prospect of dead tenants squatting in their homes for months at a time. An efficient conflict resolution process can alleviate these concerns and potentially help clear the way for tens of thousands of new rental units. Encouraging homeowners to consider renting out larger spaces is a great way to help restore housing affordability.

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