Residential Tenancies - Comment on Matthews v. Algoma Timberlakes Corporation

The Issue: Does the Residential Tenancies Act, 2006 apply to leased recreational property?

The Answer: Yes it does.

In Matthews v. Algoma Timberlakes Corporation, 2010 ONCA 468, the Ontario Court of Appeal was asked to determine whether the protections of the Residential Tenancies Act, 2006, S.O. 2006, c. 17 (the "RTA") extend to tenants who lease recreational property. The issue transcends recreational property and includes any rented residential property where the tenant has a permanent residence elsewhere.

For at least two generations, a number of persons living in the Sault Ste. Marie area had leased "sites" from the Algoma Central Railway. As required by their leases, the tenants had expended considerable time and effort to improve the sites with permanent cabins. While the tenants and their families had permanent homes elsewhere, they used the cabins for recreation and family events, often for extended periods of time.

In December 2005, the...