Ontario Landlords Can Raise the Rent 1.6% in 2015
With the cost of running a rental property rising Ontario landlords know raising rents to keep up with increasing expenses is important.
Each year the Ministry of Municipal Affairs and Housing announces what is called the ‘Rent Increase Guideline.’
What Is the Rent Increase Guideline?
This informs residential landlords how much they can raise the rent on tenants.
How Does It Inform Landlords on Raising the Rent?
It’s tells you what the cap is for any increases of rent on your tenants. You can’t raise the rent more than the cap unless you apply and get it approved at the Landlord and Tenant Board.
When Does The 1.6% Rent Increase Cap Start?
This will starting on January 1st, 2015 and end on December 31st, 2015.
How Was The Ontario Rent Increase Guideline for 2015 Calculated?
It’s calculated by measuring inflation.
This measurement comes from data provided by Statistics Canada which creates the Ontario Consumer Price Index.
An Increase of Only 1.6% Is Too Low! My Costs are Much Higher!
Many small residential landlords in Ontario agree with you.
The Ontario Consumer Price Index (CPI) upon which the Guideline is based does not include many inflation factors that small landlords face. The formula needs to change.
For example, BC landlords also have an annual rent increase guideline.
However, the government there understands the financial pressures landlords face and the limits of the basing the rent increase on CIP. This means they will take the CPI and also add another 2% to come up with British Columbia Rent Increase Guideline.
Some provinces encourage investment in residential rental properties by not even having this type of rent control.
Alberta landlords can raise the rent according to the market as long as they provide their tenants with proper notice.
Are All Ontario Residential Rental Properties Covered by Rent Control?
No. Some Ontario properties are exempt and don’t have to follow the cap. These are rental buildings built before November 1991.
But around 85% of rentals in Ontario are covered.
Rent Increase Guideline 2015 – With another low cap for rent increases it’s important Ontario Landlords choose good tenants for your rental properties.
Make sure you screen your tenants carefully and always run a tenant credit check to make sure you know who you are renting to.