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 older Ottawa apartment buildings right now. But here’s where it gets controversial: While the City of Ottawa insists renters should pay less due to a property tax reduction, some landlords are pushing back, leaving tenants caught in the middle. And this is the part most people miss—it’s not just about taxes; rising garbage fees are complicating the picture, sparking a heated debate over who should foot the bill.
In a move aimed at easing financial burdens, Ottawa announced last fall that tenants in pre-2001 buildings with seven or more units would see a slight rent reduction starting January 1, 2026. This decision came after the city lowered property taxes by 4.5% for multi-residential units in April 2025, triggering an automatic rent decrease under Ontario’s Residential Tenancies Act. For someone paying $2,000 a month, this meant a modest but welcome savings of about $16 monthly—a ‘lovely little gift,’ as Coun. Theresa Kavanagh called it, especially for long-term residents on fixed incomes.
But here’s the twist: While property taxes are down, other municipal charges—like garbage fees—are soaring. Ottawa’s garbage fees for multi-residential buildings jumped from $91 per unit in 2024 to $167 per unit in 2025, according to the city’s property tax estimator. Landlords argue that these increased costs offset the tax savings, and some have sent letters urging tenants to ignore the city’s notice and continue paying their usual rent. David Lyman, a lawyer representing dozens of landlords, calls this a ‘rock and a hard place’ situation for the city, as the law mandates rent reductions based on property taxes alone, without considering other rising fees.
So, what should tenants do? Lyman advises renters to keep paying their full rent to avoid potential retroactive payments if landlords win their challenges at the Landlord and Tenant Board. However, Sarah Sproule, a lawyer with Community Legal Services of Ottawa, disagrees. She believes tenants can trust the city’s notice and should pay the reduced amount, setting aside the savings in case the board rules otherwise. Here’s the burning question: Who’s right? And more importantly, who should bear the burden of rising municipal costs—tenants, landlords, or the city itself? Share your thoughts in the comments—this debate is far from over.
