Imagine being told you’re getting a break on your rent, only to have your landlord say, ‘Not so fast.’ That’s the confusing reality for many tenants in Ottawa right now. But here’s where it gets controversial: while the city claims renters in older buildings should pay less due to a property tax cut, landlords are pushing back, arguing other fees are rising. So, who’s right? And what should tenants do?
In a move aimed at easing financial burdens, the City of Ottawa announced a 4.5% reduction in property taxes for multi-residential units built before 2001, effective January 1, 2026. This change, part of a broader effort to balance tax rates between older and newer buildings, triggered an automatic rent reduction under Ontario’s Residential Tenancies Act. The law mandates that tenants be notified when property tax decreases exceed 2.49%. In this case, rents were set to drop by 0.89%, saving tenants roughly $16 per month—a small but meaningful amount, especially for those on fixed incomes.
And this is the part most people miss: while property taxes are indeed lower, landlords point out that other municipal charges, like garbage fees, have skyrocketed. For instance, Ottawa’s garbage charges for multi-residential units jumped from $91 per unit in 2024 to $167 in 2025. This increase, part of the city’s updated solid waste plan, has landlords arguing that the overall financial burden hasn’t actually decreased—and that tenants shouldn’t expect a rent reduction.
The result? A messy standoff. Some landlords have sent letters urging tenants to ignore the city’s notice and continue paying their usual rent. Others have taken the dispute to the Landlord and Tenant Board, filing A4 applications for variance. Legal experts predict the board could see 200 to 400 such applications this year alone.
So, what’s a tenant to do? David Lyman, a lawyer representing landlords, advises tenants to keep paying their full rent to avoid potential retroactive payments if the board rules in favor of landlords. But Sarah Sproule, a lawyer with Community Legal Services of Ottawa, counters that tenants are legally entitled to the reduction and should trust the city’s notice. She suggests paying the reduced amount while setting aside savings in case the board rules otherwise.
Here’s the bigger question: Is the city’s approach fair, or are landlords justified in their pushback? Does the rise in garbage fees negate the property tax cut? And what does this mean for tenants caught in the middle? Let us know your thoughts in the comments—this debate is far from over.
