Archive for the ‘Rent Increase Guideline 2014’ Category

Ontario Landlords: Rent Increase Guideline 2014

Wednesday, December 25th, 2013

December 25th, 2013

Ontario landlords Rent Increase Guideline 2014

How Much Can Landlords in Ontario Raise the Rent in 2014?

If you are a landlord in Ontario you face what is called ‘rent control.’

This means in many cases how much you can charge for rent is controlled by the government.

As we wrote in June about how much Ontario landlords can increase the rent in 2014 the government announces a Rent Increase Guideline, usually in the early summer before the coming year.

This is the announcement from the Ministry of Municipal Affairs and Housing informing Ontario landlords rent increases for the next calendar year.

We have had lots of landlords from all over the province asking us to clarify and confirm how much they can raise the rent in 2014 and here is your answer:

HOW MUCH CAN ONTARIO LANDLORDS RAISE THE RENT?

Ontario Landlords Can Raise the Rent 0.8% in 2014

That is the allowable increase according to the Ministry of Municipal Affairs and Housing for the province.

Is the Ontario Rent Increase Guideline Too Low?

Many landlords think it is.

After all, landlords still have not been allowed to catch up to the added costs for when the HST was implemented.

Is 0.8% a realistic example of the increased costs Ontario landlords face?

Whether you are a Toronto landlord, invest in Ottawa rentals or have properties in a smaller area and become a Newmarket landlord, many property investors and landlords say no.

Let’s look at some of the increasing costs for  landlords in our province:

1. How about the increased prices of your property taxes?

2. What about increase costs from the people we depend on to maintain our rental units?

3. Many small landlords are facing increases over 5% for services such as water.

I Need To Do Major Improvements on the Property Including a New Roof.

Is There A Way To Increase the Rent More Than 2.5%?

If you want to raise the rent more than the guideline you can apply for what is called an Above Guideline Increase through the Landlord and Tenant Board.

You can apply if the cost of your municipal taxes and charges or your utilities have increased more than the following formula: the rent increase guideline + 50%.

You can apply for increased costs due to capital expenditures or investing in security services.

Are All Residential Landlords Covered By The Rent Increase Guideline?

No, not all.

You do not have to follow the Guideline if your situation in one of the following:

1. The rental was not occupied for any purpose before June 17th, 1998

This means your rental property was built after June 17th, 1998 or you have built a new unit in your property that was never occupied before June 17th, 1998.

2. The rental unit was never previously rented since July 29th, 1975

This means only the owner has lived in the property since the date of July 29th, 1975.

3. No part of the building was occupied for residential purposes before Nov. 1st  1991

This means the property was converted from commercial to residential or was not built or occupied until after November 1st, 1991.

Ontario Landlords and the 2014 Rent Increase Guideline

 For more information see the Landlord and Tenant Board Website

To discuss this and other issues go to the Ontario Landlord Forum

How Much Can You Raise the Rent in 2014?

Friday, June 21st, 2013

 June 21st, 2013

Rent Increase Guideline How Much Can You Raise The Rent In Ontario

2014 Ontario Rent Increase Guideline Second Lowest Since 1975

Every year the government of Ontario announces what is called the “Rent Increase Guideline” for the next calendar year.

The Rent Increase Guideline means how much a landlord can increase the rent without having to go to the Landlord and Tenant Board.

(If the you want to raise the rent higher than the guideline you must get approval by the Board to do so.)

How Much Can An Ontario Landlord Raise the Rent in 2014?

Many small residential landlords are facing financial challenges and need to increase rents to cover their costs.

Today the Ministry of Municipal Affairs and Housing announced the Rent Increase Guideline for next year.

You can raise the rent 0.8% in 2014

The government says this is the second lowest rate since increases were regulated nearly forty years ago.

How Did They Come Up With This Figure?

The Ontario annual Rent Increase Guideline is based on the Ontario Consumer Price Index (CPI). This is a a measure of inflation. It’s calculated monthly by Statistics Canada.

The CPI is regarded as an objective, reliable measure of inflation. The CPI charts the change in the price of all goods and services in the provincial economy.

How Do I Raise the Rent For My Existing Tenants?

In most cases, the rent for a unit can be increased if at least 12 months have passed since the tenant first moved in, or since his or her last rent increase. The tenant must be given proper written notice of the rent increase at least 90 days before the increase takes effect.

For more information see the Landlord and Tenant Board Website

To discuss this and other issues go to the Ontario Landlord Forum