If you’re thinking about purchasing an older home as a rental property, you may be wondering:
“Do I have to bring the house up to today’s Ontario Building Code before I can rent it out?”
The short answer is:
Usually, no—but there are important exceptions.
Older Doesn’t Mean Illegal
Many homes in Ontario were built long before today’s Building Code came into effect. It is common to find features that would not be permitted in a newly constructed home, such as:
- Steeper or narrower staircases.
- Lower ceiling heights.
- Smaller bedroom windows.
- Older guardrails and handrails.
- Different room layouts.
- Older electrical or plumbing systems.
The mere fact that these features do not comply with today’s Building Code does not necessarily mean they must be upgraded before the property can be rented.
Many older homes contain features that are considered legal non-conforming (often referred to as “grandfathered”), meaning they were lawfully constructed under the standards that existed at the time.
Your Responsibilities as a Landlord
While an older home may not need to be rebuilt to today’s Building Code, landlords still have significant legal obligations.
Under Ontario’s Residential Tenancies Act, landlords must maintain their rental properties in a good state of repair and comply with applicable health, safety, housing and maintenance standards.
Landlords also owe a duty under Ontario’s Occupiers’ Liability Act to take reasonable care to ensure that tenants and visitors are reasonably safe while on the property.
For example, an older staircase may not need to be rebuilt simply because it is steeper than today’s standards. However, it should still be properly maintained by ensuring that:
- Handrails are secure.
- Steps are structurally sound.
- Lighting is adequate.
- Tripping hazards are removed.
- The staircase is kept in a reasonably safe condition.
The same principle applies throughout the property.
When Could Upgrades Be Required?
There are circumstances where upgrades may become necessary.
- Major Renovations
If you undertake significant structural renovations or additions, the work may trigger requirements under the current Ontario Building Code. Depending on the nature and scope of the project, the renovated area, or, in some cases, related portions of the home, may need to comply with current standards.
Routine maintenance and repairs, however, generally do not require the home to be brought up to today’s Code.
- Converting a Home into Multiple Units
If you are creating a new basement apartment, duplex, triplex or additional dwelling unit, you may be required to comply with current Building Code, Fire Code and municipal zoning requirements for the new unit.
This often involves requirements relating to:
- Fire separations.
- Smoke and carbon monoxide alarms.
- Means of egress.
- Ceiling heights.
- Emergency escape windows.
- Building permits.
- Municipal zoning compliance.
The legal requirements for a newly created rental unit are often much more extensive than those applicable to an existing single-family home.
Can You Shift the Risk to the Tenant?
Some landlords ask whether they can simply include a clause in the lease stating that the tenant accepts the risks associated with older features in the home.
Generally speaking, the answer is no.
A landlord cannot contract out of their statutory maintenance obligations or their duty to maintain reasonably safe premises.
While a clause acknowledging the condition of the property may have some evidentiary value, it is unlikely to relieve a landlord of liability if the property is found to be unsafe or not properly maintained.
The Bottom Line
Purchasing an older home does not automatically mean you must renovate it to comply with today’s Ontario Building Code before renting it out.
However, that does not mean you can ignore safety concerns or your legal obligations as a landlord.
You are still responsible for maintaining the property in a reasonably safe condition, and major renovations or the creation of additional dwelling units may trigger compliance with current Building Code and Fire Code requirements.
If you’re considering purchasing an older home as an investment property, obtaining legal advice before you buy can help identify potential issues before they become expensive surprises.
At Rabideau Law, we regularly assist buyers, investors and landlords throughout Ontario with residential real estate transactions, title issues and rental property matters. If you’re unsure whether an older home is suitable as a rental property, we’d be happy to help you understand the legal considerations before you commit to the purchase.
Have questions before you buy? Contact Rabideau Law, we’re here to help.
