It is important to ensure that our MPPs know the information in the bills for which they vote, and any changes in law brought forth by new legislation. One aspect of the new Residential Tenancies Act which is beneficial for landlords is the reduction of the interest required to be paid on LMR from 6% to an amount based on the CPI. However, MPP Michael Colle published a pamphlet with erroneous information which could cause headaches for landlords, and it is important that this be corrected. By Russell Levy
It is important to ensure that our MPPs know the information in the bills for which they vote, and any changes in law brought forth by new legislation. One aspect of the new Residential Tenancies Act which is beneficial for landlords is the reduction of the interest required to be paid on LMR from 6% to an amount based on the CPI. However, MPP Michael Colle published a pamphlet with erroneous information which could cause headaches for landlords, and it is important that this be corrected. By Russell Levy
To the Honourable Michael Colle,
My business is located in your district, the Eglinton-Lawrence area. This company, Rent Magic Software, creates and markets property management software for the Ontario market.
I found your pamphlet (viewable at http://www.mikecolle.com/documents/Colle-TenantPiece-2006-v7.pdf) very interesting; however, it seems there is a critical error therein. You mention in the section "Deposits, Charges and Illegal Rents" (page 6) that a landlord must pay 6% interest on LMR (last month's rent deposit). However, that information is only correct under the old legislation (the Tenant Protection Act, 1997). Under 106.6 and 120.2 in the new Residential Tenancies Act for which you voted, it specifically says that the interest paid on LMR is determined by the CPI for Ontario. For 2007, the published amount is 2.6%. Please see http://www.orht.gov.on.ca/userfiles/HTML/nts_3_27595_1.html for verification of this information. Here are the relevant sections:
106 (6) A landlord of a rental unit shall pay interest to the tenant annually on the amount of the rent deposit at a rate equal to the guideline determined under section 120 that is in effect at the time payment becomes due. 2006, c. 17, s. 106 (6).
120 (2) The guideline for a calendar year is the percentage change from year to year in the Consumer Price Index for Ontario for prices of goods and services as reported monthly by Statistics Canada, averaged over the 12-month period that ends at the end of May of the previous calendar year, rounded to the first decimal point. 2006, c. 17, s. 120 (2).
I think it would be prudent to inform your constituents of this error, to ensure they fully understand the new legislation. As faulty information was mailed to every citizen in your electorate, I would hope the correction would be publicized in a similar fashion.
Thank you for your time,
Russell Levy, President
Rent Magic Software
416-238-7989x200
200-3089 Bathurst St.