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The Residential Tenancies Act (2006) of Ontario states the following:

A landlord may charge a tenant only for the landlord’s reasonable out-of-pocket expenses incurred in giving consent to an assignment to a potential assignee.

My landlord is charging $150 claiming that this is for “their time.” They were only involved in giving consent to the assignment, not finding the assignee.

What is considered an out-of-pocket expense? I can’t find a definition to that effect in the Act itself. Does the landlord’s time count?

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  • 3
    The Wikipedia page is clear that it doesn't cover time, but I guess you need something more relevant to Ontario law.
    – Stuart F
    May 23, 2023 at 20:46
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    @StuartF That’s what got me wondering initially, but ideally I’d be looking for a legal definition
    – Marsroverr
    May 23, 2023 at 20:58
  • Out of pocket means that he paid out of his pocket. It does not include his time May 24, 2023 at 4:34
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    Even assuming the landlord's time qualifies, I find it hard to believe that $150 is reasonable. How much time did they spend evaluating the assignee? If it’s 15 minutes (5 min phone call + 10 min google check, more than I would expect), is the landlord's time really worth $600/h ?
    – KFK
    May 24, 2023 at 14:28
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    @KFK it's very clearly them trying to rip me off but telling them their time isn't out-of-pocket is an easier route than arguing over the value of their time
    – Marsroverr
    May 24, 2023 at 18:27

1 Answer 1

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Out of pocket expenses are those that are actually paid in cash or cash equivalents

If your landlord pays an external lawyer or real estate agent for their time, that is an out of pocket expense. Their own time is not.

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  • Is this different for corporate landlords? Can they claim their employees' time as out-of-pocket?
    – Marsroverr
    May 24, 2023 at 18:26
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    @Marsroverr No and no. They can claim a contractor or consultant’s time
    – Dale M
    May 24, 2023 at 20:19

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