A battle over rent prices is brewing in Ottawa, and tenants are caught in the crossfire. Should they pay less rent or stick to the original amount?
Tenants residing in older apartment buildings in Ottawa were expecting a small rent reduction at the beginning of 2026, but conflicting messages from landlords have left them confused. The city's attempt to rectify property tax rates for buildings constructed before and after 2001 has sparked a debate.
The Rent Reduction Plan
In January 2026, tenants in older buildings were informed that their rent would decrease slightly due to a 4.5% property tax reduction for multi-residential units. This automatic rent reduction is mandated by Ontario's Residential Tenancies Act when property taxes decrease by more than 2.49%.
For example, tenants paying $2,000 monthly rent could save around $16 per month or $192 annually. City councilor Theresa Kavanagh described this as "a lovely little gift" for renters, especially those on fixed incomes.
Landlords' Counterargument
While landlords acknowledge the property tax decrease, they argue that other municipal charges, such as garbage fees, have increased significantly. These fees are not considered in the city's rent reduction calculation. As a result, some landlords have advised tenants to continue paying their usual rent until further notice.
David Lyman, a lawyer representing landlords, highlighted the substantial rise in garbage fees for multi-residential buildings, from $91 per unit in 2024 to $167 per unit in 2025. He believes the tribunal might side with landlords when considering the total tax bill changes.
The Legal Perspective
The situation is complex, and both sides have valid arguments. Some landlords have filed applications to challenge the rent reduction at the provincial Landlord and Tenant Board. The board will examine the overall tax bill changes and make a decision.
Lawyer Sarah Sproule advises tenants to pay the reduced rent, as the city's notices likely have a legal basis. However, she acknowledges the uncertainty of the situation. If the tribunal rules in favor of landlords, tenants who pay less may face retroactive payments.
And here's where it gets controversial: Should tenants trust the city's notices or heed the landlords' advice?
What's Next?
The number of applications challenging the rent reduction is expected to rise significantly this year. Tenants are left wondering whether to take advantage of the rent decrease or play it safe. The outcome of the tribunal's decision will have a substantial impact on renters' finances.
What do you think tenants should do? Is the city's rent reduction plan fair, or should landlords have a say in the matter?
