Can I take the money my landlord owes me out of my monthly rent?

The situation

I am currently living in a rental apartment in Ontario and I am having a massive dispute with my landlord regarding my security deposit and some repairs. Back in January, I paid a $2,000 deposit, but when I moved into this unit, the landlord refused to acknowledge it. On top of that, a pipe burst in my kitchen on March 15th, and because the landlord ignored my messages for three weeks, I had to pay $1,500 out of my own pocket for an emergency plumber to fix the damage. I have all the receipts and a long paper trail of my attempts to resolve this through polite emails and even a formal letter sent via registered mail last month, but they simply refuse to pay me back. I am planning to take this to the housing board to get my $3,500 back. If the board rules in my favour and orders the landlord to pay me that total amount, am I allowed to just deduct that $3,500 from my future rent payments over the next few months to make up for the loss, or do I have to wait for them to send me a pay cheque?

Detailed Analysis

In your situation, you are seeking $3,500 ($2,000 for a deposit and $1,500 for emergency repairs). If you take this to the housing board and they rule in your favor, you cannot simply decide to stop paying part of your rent on your own. Under the law, the Board has the power to include a specific instruction in its order regarding how you get your money back.

The law states that "if a landlord or non-profit housing co-operative is ordered to pay a sum of money to a person who is a tenant... the order may provide that if the landlord or co-operative fails to pay the amount owing, the tenant or member may recover that amount plus interest by deducting a specified sum from the tenant’s rent... for a specified number of rental periods"^[1]. This means the Board must write a specific rule into their decision that gives you the right to deduct the money. If the Board only orders the landlord to pay you a cheque and does not include this deduction clause, you must pay your full rent and wait for the payment^[1].

If the Board does include this clause and your landlord still fails to pay, you can then follow the instructions in the order to deduct the money. The order will specify exactly how much you can take out each month and for how many months^[1]. Additionally, the law notes that "nothing in subsection (5) limits the right of the tenant or member to collect at any time the full amount owing"^[1]. This means even if you are using the monthly deduction method, you still have the right to pursue the full amount through other means if needed.

State, provincial, or local laws may add further rules, so you should check with the Landlord and Tenant Board or a local legal clinic.

Statutory Citations

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