Ottawa’s Rent Reduction Confusion: What Landlords Need to Know

Recently, many Ottawa tenants opened their mail to an unexpected message: according to the City of Ottawa, their rent was supposed to go down.

Specifically, some tenants living in apartment buildings with seven or more units that were built before 2001 were told that their landlords would be paying lower property taxes as of January 1 and that this reduction should be passed on to them in the form of lower rent.

For landlords, this created an immediate problem.

Many had not adjusted rents, some were unsure whether the reduction applied to their building at all, and others were left dealing with understandably confused tenants asking why their rent hadn’t dropped. The result has been mixed messaging, strained landlord-tenant relationships, and real legal uncertainty.

Landlords were left asking:

• Does this reduction apply to my building?

• Am I legally required to reduce rent?

• What happens if a tenant unilaterally pays less?

• Can I recover unpaid rent later?

• How do I respond without escalating the situation?

These are not hypothetical concerns. Paying or accepting the wrong rent amount, even temporarily, can have long-term legal consequences.

Why This Is a Legal Issue

A well-intentioned but incorrect response can expose landlords to:

• Claims at the Landlord and Tenant Board

• Rent abatement orders

• Difficulty collecting arrears

• Precedents that affect future rent increases

This is exactly why “just going along with it” or “sorting it out later” can be risky.

The Bottom Line

Ottawa’s effort to correct property tax inequities may be well-intentioned, but the rollout has left many landlords unfairly exposed to confusion and conflict.

There are applications being filed currently with the Landlord and Tenant Board on behalf of landlords to help sort out this issue. For some landlords it may be too late. For others there may be some time left.

If you’d like help navigating this issue, you will need to act fast.