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Table of Contents
You can use this application to apply to the Landlord and Tenant Board (LTB) for an order allowing a rent increase of more than the guideline for any or all of the rental units in the residential complex in any or all of the following cases:
Note that eligible capital expenditure work can include work to protect or restore the physical integrity of the residential complex, to maintain it, to provide access for persons with disabilities, or to promote energy or water conservation, etc.
You cannot use this application to apply for a rent increase more than the guideline if your application is based on capital expenditure(s) to replace a system or thing that did not require major repair or replacement, unless it promotes access for persons with disabilities, energy or water conservation, or security of the residential complex or part of it.
You cannot apply for a rent increase more than the guideline for a rental unit if the tenancy agreement of a new tenant took effect after you completed the work related to the capital expenditure.
Important: You must file Form L5 no later than 90 days before the effective date of the first intended rent increase you refer to in your application.
Read these instructions before completing the application form. You are responsible for ensuring that your application is correct and complete. Follow the instructions carefully when you complete the application form.
In the Landlord's Name and Address section, fill in the landlord's name and address. If the landlord is a company, fill in the name of the company under "Company Name". Include both daytime and evening telephone numbers and a fax number and e-mail address, if you have them.
If there is more than one landlord, fill in information about one of the landlords in this section of Part 1. Provide the names, addresses and telephone numbers of the additional landlords on the Schedule of Parties Form which is available from the LTB website at tribunalsontario.ca/ltb.
Fill in the complete address of the rental unit, including the unit number (or apartment or suite number) and the postal code.
If the street name includes a direction that will not fit in the five spaces provided (such as Northeast) use the following abbreviations: NE for Northeast, NW for Northwest, SE for Southeast, SW for Southwest.
Example:
If the address is: #208 at 1120 Mayfield Road North, London, this is how you should complete Part 1 of the application:
Fill in the names, addresses (including the unit numbers) and telephone numbers of any tenants on the Schedule of Parties Form which is available from the LTB website at tribunalsontario.ca/ltb.
Fill in the date of the first rent increase you intend to take for the rental units covered by the application. Note that you must file your application no later than 90 days before the effective date of the first intended rent increase.
If a previous order was issued under the Residential Tenancies Act, 2006 (the RTA) increasing the rent above the guideline, then fill in the file number of that order. If there has been more than one previous order, fill in the file number for the most recent order.
Shade the appropriate box or boxes to indicate the reason(s) on which you are basing your application.
Reason 1: The municipal taxes and charges for the residential complex increased by an "extraordinary" amount.
Shade this box if there has been an extraordinary increase in the cost of municipal taxes and charges for the complex in the previous calendar year. Municipal taxes and charges include taxes charged to a landlord by a municipality, charges levied on a landlord by a municipality, taxes levied on a landlord's property in unorganized territory and education taxes.
An increase in the cost of municipal taxes and charges is extraordinary if it is greater than the annual rent increase guideline plus 50% of the guideline. Use the guideline for the year in which the first intended rent increase for the units covered by the application will take effect.
Example: If the guideline is 0.8%, then the guideline plus 50% of the guideline is 0.8% + 0.4% = 1.2%. If the landlord's taxes have gone up by more than 1.2%, then this increase is "extraordinary".
If you are applying for this reason, complete Part A of Schedule 1.
Reason 2: Operating costs for security services for the residential complex have been experienced for the first time or have increased.
Shade this box if you are providing security services to the complex for the first time, or if your operating costs for security services have increased. Security services must be provided by persons who are not your employees.
If you are applying for this reason complete Part B of Schedule 1.
Reason 3: Capital expenditure work was done in the residential complex.
Shade this box if you are applying because you have done capital expenditure work. Then, fill in the total number of rental units in the complex and how many of those units are covered by the application.
A capital expenditure is an expenditure for an extraordinary or significant renovation, repair, replacement or new addition. The expected benefit of a capital expenditure must be at least five years. Expenditures on routine maintenance or on work that is substantially cosmetic in nature are not considered to be capital expenditures and cannot be claimed in the application.
The capital expenditure work must have been completely paid for when you file the application. The work must also have been completed within the 18 month period that ends 90 days before the date the first intended rent increase for the units covered by the application will take effect.
If you are applying for this reason complete, complete Schedule 2. Also complete the Information about Rental Units in the Complex Form and the Capital Expenditures: Additional Details Form for each capital expenditure item you are claiming.
Answer each question in this section of the form. You must indicate whether:
You must also indicate whether or not any elevator work ordered to be done has been completed.
If you have been ordered to do elevator work and it has not been completed by the time you file the application, you must complete a Summary of Outstanding Elevator Work and attach it to your application. A copy of this form is included at the end of the Form L5 application.
If you are the landlord, shade the circle marked "Landlord". Then, sign the application form and fill in the date.
If you are the landlord's legal representative, shade the circle marked "Landlord's Legal Representative". Then, sign the application form and fill in the date.
Complete this section only if you are a legal representative. Fill in your name, address and contact information in the spaces provided.
You must fill out this Schedule if you are applying for a rent increase above the guideline because of increased costs for:
You must attach evidence of costs and payment for all the costs you are applying for. As well, if you are applying because of an extraordinary increase in costs for municipal taxes and charges and you received any grants or other forms of financial assistance, rebates and/or refunds that effectively reduced the operating costs you are claiming, you must attach evidence of the amount(s) you received. Evidence could include invoices, receipts, cancelled cheques or a letter from the supplier confirming the costs and that payment was received or indicating the amount of any rebate given.
The accounting periods for municipal taxes and charges are made up of a reference year and a base year. The base year is the most recent calendar year completed 90 days before the date the first intended rent increase for the rental units covered by the application will take effect. The reference year is the calendar year immediately before the base year.
For example, if the first intended rent increase for the units covered by the application will take effect on September 1, 2017, the base year is calendar year 2016 and the reference year is calendar year 2015.
On the form, fill in the accounting periods and costs you experienced during each period.
In order to allocate the costs to the units affected by the increase for municipal taxes and charges and covered by the application, the LTB needs to know whether or not the costs affect all the units in the complex.
Shade either the "Yes" or "No" circle to indicate whether you received any refunds, rebates, grants or other types of financial assistance for municipal taxes and charges that affect the costs for the base year and/or the reference year.
The accounting periods for security services are made up of a reference year and a base year. The base year is your most recent 12 month accounting period completed at least 90 days before the date the first intended rent increase for the rental units covered by the application will take effect. The reference year is the 12-month accounting period immediately before the base year. The accounting periods for security services can be different from those for municipal taxes and charges.
If a previous order has been issued by the LTB for this residential complex allowing you to increase the rent above the guideline, the accounting periods for this application must start and end on the same days as those chosen for the previous order.
Fill in the accounting periods and the costs you experienced during each period.
After you have determined the accounting periods, fill in your costs for each period for security services.
In order to allocate the costs to the units affected by the cost categories and covered by the application, the LTB needs to know whether or not the costs affect all the units in the complex.
Shade either the "Yes" or "No" circle to indicate whether any of the operating cost categories relate to non-residential portions of the complex or other residential complexes.
If you answered "Yes", you must list the cost category and provide details about how you propose the costs should be allocated. You can propose to allocate the costs based on floor area, market value, or revenue generated. If none of these methods are reasonable, you may propose another method. You can propose different methods for allocating the costs for different operating cost categories.
For the method you propose, you must provide the information necessary to allocate the costs between the residential portions and non-residential portions of the complex (or other residential complexes). For example, if you propose that costs should be allocated based on revenue generated and the operating cost category relates to non-residential portions of the complex, you must determine the revenue generated by the residential portions and non-residential portions of the complex and provide the details in the space provided.
If you answered "No", then you do not have to complete the rest of Part C on the form.
In Column 1, list the unit numbers for those units that are both affected by the cost category and covered by the application. In Column 2, provide the total current rent charged for the units listed in Column 1. In Column 3, provide the total current rent charged for all the units in the residential complex that are affected by the cost category.
If a unit in the complex that is affected by the cost category is currently vacant or not rented, use the average rent for all the rental units in the residential complex.
Example:
A landlord wants to increase the rent by more than the guideline for four rental units (units 1, 2, 3 and 4) in a residential complex that has a total of six rental units. Unit 5, which is not covered by the application, is vacant. Unit 6 is rented but is not covered by the application. The landlord claims that municipal taxes and charges have increased by an "extraordinary" amount. The monthly rents for the units in the complex are as follows:
| Unit 1: $900 | Unit 2: $700 | Unit 3: $800 |
| Unit 4: $800 | Unit 5: $0 | Unit 6: $900 |
The landlord calculates the average rent for the units in the complex as follows: ($900 + $700 + $800 + $800 + $900) ÷ 5 = $820 – this is what he includes for the rent for unit 5 in the calculations below.
The landlord calculates the total rent charged for the units that are covered by the application as follows:
$900 (unit 1) + $700 (unit 2) + $800 (unit 3) + $800 (unit 4) = $3200
The landlord calculates the total rent charged for all the units in the complex that are affected by the costs for municipal taxes and charges as follows:
$900 (unit 1) + $700 (unit 2) + $800 (unit 3) + $800 (unit 4) + $820 (unit 5) + $900 (unit 6) = $4920
The landlord therefore completes the Table as follows:
| Operating Cost Categories | Column 1 Units that are affected by the cost category and are covered by this application (list unit numbers) |
Column 2 Total rent charged for units listed in Column 1 |
Column 3 Total rent charged for all rental units in the complex affected by the operating cost |
|---|---|---|---|
| Municipal Taxes and Charges | Units 1, 2, 3 and 4 | $3200 per month | $4920 per month |
If you are applying for Reason 3, you must fill out this schedule.
If you are applying for a rent increase above the guideline because you incurred capital expenditures, you must fill out this Schedule completely.
You must attach evidence of costs and payment for all the costs you are applying for. Evidence of costs and payment could include invoices, receipts, cancelled cheques or a letter from the contractor or supplier confirming the costs and that payment was received. You must also attach a "Capital Expenditures: Additional Details" form for each capital expenditure item you are claiming.
Complete the Description and Costs table:
Item #: Assign an item number to each capital expenditure item that you are claiming.
Description of Capital Expenditures: Provide a description of the work completed.
Date Completed: Fill in the date the item was completed.
Useful Life: Fill in the "useful life" for each capital expenditure item that you are claiming.
The useful life is the estimated number of years that the capital expenditure is expected to last or benefit the complex. A list of capital expenditure items and the useful life for each item is set out in a Schedule attached to the regulations made under the Residential Tenancies Act, 2006 (O.Reg. 516/06).
If the capital expenditure item that you are claiming was previously used, then take into consideration the length of time that it was used when you determine the useful life for the item.
For example, according to the Schedule, the useful life of a refrigerator is 15 years. If you purchased a refrigerator that was previously used for 2 years then you would determine the useful life for the refrigerator to be 13 years.
If the capital expenditure item is not listed in the Schedule, then include the useful life of an item listed in the Schedule that has similar characteristics. If there are no similar items listed, then you should include the number of years that is generally accepted as the useful life for the item you are claiming. However, at a hearing the LTB may find that a different useful life is more appropriate.
Note: If the useful life in the Schedule is less than 10 years, the regulations state that the useful life will be deemed to be 10 years. A member cannot consider a useful life that is less than 10 years.
Labour/Material and Contract Costs: Fill in the labour/material and contract costs.
Landlord's Own Labour Hours x Rate = Total: Enter the value of landlord's own labour. When determining the value of the landlord's own labour, you must provide information on the number of hours you spent doing the work, the hourly rate and the total value claimed.
Do not include any amount of time you spent on the management and administration of the capital work. The hourly rate you are claiming must be reasonable based on your experience and skill in the type of work that was done. Calculate the total value by multiplying the number of hours you spent by the hourly rate.
Total Costs: Fill in the total costs. The total cost of each item is the sum of the labour/material and contract costs and the value of the landlord's own labour.
Note: If you want to claim a leased asset as a capital expenditure item, you should provide a copy of the lease. The cost you should claim is the market value of the item at the start of the lease. Fill in the market value under the column for the labour/material and contract costs of the capital expenditure item.
Provide an explanation as to why each capital expenditure is eligible.
For each capital expenditure item included in section A of the form, provide an explanation as to why you believe the capital expenditure is "eligible".
A capital expenditure may be eligible under subsection 126(7) of the RTA if:
These terms are not defined in the RTA or the regulations, with the exception of "physical integrity". According to subsection 18(1) of O. Reg. 516/06, physical integrity means the integrity of all parts of a structure, including the foundation, that support loads or that provide a weather envelope and includes, without restricting the generality of the foregoing, the integrity of:
Complete this part of the form if the allowance for one or more of the capital expenditures items should not to be applied to the rents for all rental units in the residential complex.
Complete the table:
Example:
A landlord wants to increase the rent by more than the guideline for four rental units (units 1, 2, 3 and 4) in a residential complex that has a total of six units. The landlord claims that new carpets were installed in unit 1, unit 2, unit 3 and unit 6. The landlord completes the table as follows:
| Item # | List the unit numbers in the complex that the capital expenditure item should NOT be applied to. Be sure to also include units that are not covered by this application. |
|---|---|
| 1. Carpets | Units 4 and 5 |
Under subsection 126(8) of the RTA, a capital expenditure to replace a system or thing is not an eligible capital expenditure if the system or thing that was replaced did not require major repair or replacement. Exception – the item would be considered eligible if the replacement of the system or thing promotes:
Review the capital expenditure items listed in section A. Are any of these items a major repair or replacement of a system of thing that already existed? (For example, a new roof would be a replacement.) If yes, complete the chart on the form.
Shade either the "Yes" or "No" circle to indicate whether you received any money from an insurer, government grants or forgivable loans or other assistance, trade-in, salvage or resale for any capital expenditure item(s).
Shade either the "Yes" or "No" circle to indicate whether any of the capital expenditure items relate to non-residential portions of the complex or other residential complexes.
If you answered "Yes", you must list the item number and provide details about how you propose the costs should be allocated. You can propose to allocate the costs based on floor area, market value, or revenue generated. You can propose different methods for allocating the costs for different capital expenditure items. If none of these methods are reasonable, you may propose another method. However, at a hearing the LTB may find that a different allocation method is more appropriate.
For the method you propose, you must provide the information necessary to allocate the costs between the residential portions and non-residential portions of the complex (or other residential complexes). For example, if you propose that costs should be allocated based on revenue generated and the capital expenditure item relates to non-residential portions of the complex, you must determine the revenue generated by the residential portions and non-residential portions of the complex and provide the details in the space provided.
If you answered "No", then you do not have to complete the rest of Part D on the form.
If you are applying for a rent increase because you did capital expenditure work, you must complete this form with information about each rental unit in the complex. You must include rental units that are not covered by the application and rental units that are vacant or not rented.
If you need additional rows in order to provide the information about all rental units in the complex, complete and attach additional copies of the form. At the bottom of each page, indicate the page number and the total number of pages you included. For example, if you use three pages in total, write 'Page 1 of 3' on the first page of the form.
Complete the table:
Unit number: Fill in the unit number for each residential rental unit in the complex (do not include commercial units). List the unit numbers in order where possible.
Example: If the complex has three floors and three units on each floor, you will list the units on the first floor in order, followed by the units on the second floor and ending with the units on the third floor. E.g. 101, 102, 103, 201, 202, 203, 301, 302, 303.
Unit not covered by the application: Place an "X" in this column if the rental unit identified in the first column is a rental unit that is not covered by the application.
Total current rent: Fill in the total current rent for the rental unit identified in the first column.
The total current rent for a unit includes the basic rent for the rental unit and any amount the tenant pays to the landlord separately for services (for example, for a parking space). If a unit is vacant or not rented, fill in "$0.00" as the total current rent.
Frequency of the rent: Fill in how often the tenant of the rental unit pays the rent (for example, per month or per week).
Date current tenancy began: Fill in this column for every rental unit covered by the application where the tenancy began on a date that is less than 18 months before the deadline to file the application. The deadline to file the application is 90 days before the date the first intended rent increase for rental units covered by the application will take effect.
Example: If the first rent increase for a rental unit covered by an application will take effect on June 1, 2018, the landlord's deadline to file the application would be March 2, 2018 (90 days before June 1). The landlord would fill in the date the tenancy began in this column for every rental unit where the tenancy began after September 2, 2016 (18 months before March 2, 2018).
Example:
A landlord wants to increase the rent by more than the guideline for four rental units (units 1, 2, 3 and 4) in a residential complex that has a total of six rental units. Unit 5 is vacant. Unit 6 is rented but is not covered by the application. The first rent increase for a rental unit covered by the application will be June 1, 2018. The landlord's deadline to file the application is March 2, 2018. The tenancy for unit 4 began on January 1, 2017. The tenancies for the other units covered by the application began before September 2, 2016 (the start of the 18-month period referred to above). The monthly rents for the units in the complex are as follows:
| Unit 1: $900 | Unit 2: $700 | Unit 3: $800 |
| Unit 4: $800 | Unit 5: $0 | Unit 6: $900 |
This is how the landlord filled out the Information about Rental Units in the Complex form:
| Unit Number | Unit not covered by application (Place an "X" in this column if the unit is not covered by the application) | Total current rent (Place "$0.00" in this column if the unit is vacant or not rented) | Frequency of Rent (per month/week, etc.) | Date current tenancy began (dd/mm/yyyy) (Complete only if the tenancy began less than 18 months before the deadline to file the application) |
|---|---|---|---|---|
| 1 | $900.00 | MONTH | ||
| 2 | $700.00 | MONTH | ||
| 3 | $800.00 | MONTH | ||
| 4 | $800.00 | MONTH | 01/01/2017 | |
| 5 | X | $0.00 | MONTH | |
| 6 | X | $900.00 | MONTH |
If you are applying for a rent increase because you incurred capital expenditures, you must complete this form for each capital expenditure item you claim.
You may need more than one row to provide all the information for each contractor and/or supplier so be sure to list all the invoices and payments related to a contractor or supplier before you list the information for the next contractor or supplier. (See the example at the end of this section.)
If you require more than one form to provide all the information for an item, you must complete additional copies of the form. At the bottom of each page, indicate the page number and the total number of pages (copies) included for the item. For example, if an item requires three pages in total write 'Page 1 of 3' on the first page of the form. For each additional page you include for an item, write the item number at the top of the page (under Item number and description of work), and write "continued". It is not necessary to repeat the total labour, material and contract costs, or the date the work was completed.
Provide the information requested above the table setting out the additional details of the capital expenditure work:
Item number and description of work: Indicate the item number that you chose for this capital expenditure item on Schedule 2: Details of Capital Expenditures, and describe the work done.
Total labour, material & contract costs claimed in application for this item (not including Landlord's own labour): Include the total labour, material and contract costs for this capital expenditure item. This amount must be the same as the amount you indicated in Schedule 2 for this item. Do not include the value of the landlord's own labour.
Date work completed: Include the date the work for this item was completed. This date must be the same as the date you indicated on Schedule 2 for this item.
Complete the table to provide details about the capital expenditure work:
Contractor/supplier: In the first column, indicate the name(s) of the contractor(s) and/or supplier(s) you used for this capital expenditure.
As indicated above, you will need to allow enough rows to identify all the invoices and payments related to a contractor or supplier before you list the information for the next contractor or supplier. (See the example at the end of this section).
Invoice/bill number: In this column, list all of the invoices or bills this contractor or supplier gave you in successive rows. If you paid for a particular invoice in more than one instalment, remember to allow a row on the chart for each payment before listing the next invoice. (See the example at the end of this section.)
If you received an invoice or bill which is not numbered (for example, a bill from a retail store), indicate N/A (not applicable) in this column.
Invoice/bill date: In this column, indicate the date of each invoice or bill.
Invoice/bill amount: In this column, indicate the total amount of the invoice or bill, even if part of the invoice or bill is not related to this item.
Example: If the invoice was for $400, but $150 related to a different capital expenditure item, include $400 in this column. Use the 'Remarks' column to explain the discrepancy. (See the example at the end of this section).
Method of Payment: In this column, indicate how you paid for each invoice or bill.
Example: if you paid with your Visa Card, you could write 'Visa' in this column.
Cheque number: In this column, include the cheque number if you paid for the invoice or bill by cheque. If you did not pay by cheque, write 'N/A' in this column. If you paid using more than one cheque, list the cheque number for each cheque in successive rows.
Payment amount: In this column, indicate the total amount of the payment, even if part of the payment relates to another item. Use the 'Remarks' column to explain what the payment covered, and, if a portion related to another capital expenditure item, to identify that item.
If you paid for more than one invoice or bill from a particular contractor or supplier at one time, indicate the total amount you paid in this column. For example, if you received two invoices from a particular supplier, one for $300, and one for $400, and paid for both invoices with a cheque for $700, you would include $700 in this column. Use the "Remarks" column to explain that the payment covered more than one invoice, and to identify the relevant invoices.
Payment date: In this column, include the date you made the payment.
Amount related to this item: In this column, indicate the amount of the payment that relates specifically to this capital expenditure item.
Example: if you made a payment of $900 for a particular invoice, but $300 of that invoice applied to a different capital expenditure item, you would write $600 in this column.
Add all the amounts in this column and include the total under "Total" at the bottom of the chart. If you used more than one page for this capital expenditure item, include the total on the final page. The total you indicate in this column should be the same as the amount you included in "Total labour, material & contract costs..." at the top of the form.
Remarks: Use the Remarks column to explain anything that might not be clear on the chart itself.
Example: If an invoice included amounts unrelated to the capital expenditure item, and therefore, the invoice amount was higher than the amount related to this item, you would explain the discrepancy here.
Below is an example which illustrates how to fill out the chart in different situations:
Complete this form if you indicated in Part 3 of the form that you have been ordered to do work related to one or more elevators in the residential complex, and the work has not been completed. You must complete this form even if the compliance period for doing the work has not yet passed.
The LTB wants to ensure that everyone who uses its services can ask for and receive accommodation and/or French Language services in order to be able to participate in its proceedings on an equal basis.
Shade the appropriate box or boxes on the form to indicate whether you need accommodation under the Ontario Human Rights Code, French-language services or both. The LTB will not include a copy of this form when we give the other parties a copy of the application form. However, the information will be included in your application file. The file may be viewed by other parties to the application.
If you require accommodation under the Human Rights Code, explain what services you need in the space provided.
Complete this form to provide the LTB with the information required to process your application. Your application will not be accepted if you do not pay the application fee at the time you file the application. If you owe money to the LTB as a result of failing to pay a fee or any fine or costs set out in an order, your application may be refused or discontinued.
Shade the appropriate box to show whether you are paying by money order, certified cheque, Visa or MasterCard. If you are filing by mail or courier, you can pay by credit card by completing the Credit Card Payment Form and submitting it with your application. You cannot pay by cash or debit card if you are filing your application by mail or courier.
To file this application, you must include the following:
Your application will be refused if any of the items listed above are missing.
You can file your application in one of the following ways:
Mail or courier your L5 application and supporting documents to the nearest LTB office. To find a list of LTB office locations visit the LTB website at tribunalsontario.ca/ltb. You can also call the LTB at 416-645-8080 or 1-888-332- 3234 (toll-free).
If you mail or courier your application, you can pay the application fee by certified cheque, money order, Visa or MasterCard. Certified cheques and money orders must be made payable to the Minister of Finance. If you are filing by mail or courier and paying by Visa or Mastercard, you must complete the Credit Card Payment Form and submit it with your application.
Effective December 31, 2021, the LTB has decommissioned its fax machines assigned to regional offices. This means that except for a limited number of circumstances, the LTB no longer accepts documents, including applications, by fax.
If you must use fax to file applications or submit documents urgently because you don't have access to a computer and/or internet or can't visit a local ServiceOntario office, applicants can fax applications and documents that don't have a fee associated, or where they are eligible for a fee waiver, to 1-833-610-2242 or (416) 326-6455.
Due to Payment Card Industry (PCI) security compliance requirements, the LTB can no longer accept credit card payment via fax. Applications with credit card information will be automatically deleted and not processed. Please contact the LTB at 1-888-332-3234 for information on how to submit payment information.
You can visit the LTB website at: tribunalsontario.ca/ltb.
You can call the LTB at 416-645-8080 from within the Toronto calling area, or toll- free at 1-888-332-3234 from outside Toronto, and speak to one of our Customer Service Officers.
Customer Service Officers are available Monday to Friday, except holidays, from 8:30 a.m. to 5:00 p.m. They can provide you with information about the Residential Tenancies Act and the LTB's processes; they cannot provide you with legal advice. You can also access our automated information menu at the same numbers listed above 24 hours a day, 7 days a week.