Posts Tagged ‘how much can I raise the rent?’

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

The 2013 Ontario Rent Increase Guideline is 2.5%

Saturday, June 23rd, 2012

June 23nd, 2012

How Much Will I be Able to Raise the Rent in 2013?

The guideline for 2013 is 2.5 per cent.  For example, if the rent is $1,000 the amount you can increase the rent is $25.

How Was this Increase Calculated?

In Ontario the yearly Rent Increase Guideline is a calculation based on the Ontario Consumer Price Index.  This Index is managed the federal government’s Statistics Canada.

With All the Increases in My Costs, It Feels Too Low

The amount should have been 2.6% except there is a recent new law capping annual increases in Ontario to a maxium of 2.5%

Even 2.6% Is Too Low for Me to Recover My Costs

Agreed.  There is a lot of debate going on amongst landlords regarding changing the rent increase formula to add more weight to costs landlords’ face.  This issue has already been brought up by the OLA to MPPs and candidates in ridings across Ontario.

What Types of Property Does the Guideline Cover?

The Ontario Rent Increase Guideline applies to most of the  private residential rental accommodation covered by the Residential Tenancies Act, 2006 (RTA).

It’s important to note this guideline does not apply to

  • Residential units which are vacant
  • Residential rental units first occupied on or after November 1st, 1991
  • Units which are Social housing units
  • Units which are used as Nursing homes
  • Commercial properties

How Do I Give My Tenants a Rent Increase?

Usually the rent for a unit can be increased if the following situation exists.  At least 12 months must have passed since a tenant first moved in, or, if at least one year has passed since the last rent increase.

Please note, your tenants must be given proper written notice of a rent increase.  Proper notice means at least 90 days before the rent increase takes effect.

Can You Provide Me With a Clear Example?

Let’s say the monthly rent for your house is $1,000 beginning August 1, 2012.

With proper notice (written 90 days notice to the tenant), you could lawfully increase the rent 12 months later on August 1, 2013.

Let’s put that another way:

  • The Ontario guideline for 2013 is 2.5%.
  • The rent increase is 2.5% of $1,000 = $25.
  • This means the new rent on August 1, 2013 could be up to $1025 ($1000 + $25).

You find out more and add your opinions in the Ontario Landlords Advice Forum.

 

Ontario Landlord News: 2012 Rent Increase Guideline (Ontario)

Friday, July 29th, 2011

July 29, 2011

At long last the Ontario 2012 Rent Increase Guideline has been released!

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

Last year, the 0.7% Rent Increase Guideline was released with great fanfare from the government in June.  Landlords and property managers across Ontario have been waiting for the latest Guideline (with many wondering the reasons for the delay).

This year, the rate of allowable rent increases for 2012 will be 3.1 per cent.

The guideline is the maximum amount that most landlords can increase a tenant’s rent during the year without making an application to the Landlord and Tenant Board.

The 2012 guideline applies to rent increases between January 1 and December 31, 2012. 

The Ontario government states the average yearly increase from 2004-2011 was 1.89 per cent.  The average yearly increase from 1993 – 2003 was 3.17 per cent.

To read the government announcement, click here

To discuss this in the Ontario Landlords forums, click here

How much can I raise the rent in 2011?

Tuesday, February 8th, 2011

Q.  How much can I raise the rent in 2011?

A. The Annual Guideline for 2011 is 0.7%

The Toronto Sun: Ontario Rent Hike Lowest in 35 Years

Thursday, January 6th, 2011

Ontario’s rent hike lowest in 35 years

By ANTONELLA ARTUSO, Queen’s Park Bureau Chief
Last Updated: January 2, 2011 5:20pm

Ontario rents will be allowed to edge up by only 0.7% in 2011.

It is the lowest increase in the 35-year history of the province’s rent guideline — the maximum annual rent increase allowable without seeking special approval from the Landlord and Tenant Board for a heftier hike.

“The McGuinty government is providing real protection for tenants by linking the rent increase guideline to the Ontario Consumer Price Index which prevents routine rent increases above the rate of inflation while ensuring landlords can recover increases in their costs,” said Liberal cabinet minister Jim Bradley.

Stuart Henderson, a moderator with the Ontario Landlords Association, which typically represents property owners with less than five units for rent, said the tiny increase has many of the group’s members wondering if they can afford to stay in the business.

“We’re the ones that are paying all these new costs — the price of gas, hydro, the HST — and then we kind of get kicked in the stomach with a 0.7% increase,” he said. “It leaves kind of the worst landlords in the market, people who are renting out fire traps, illegal places.”

The next provincial election will be held in October, and Henderson said the McGuinty government is clearly currying favour with tenants.

“It’s political opportunism,” he charged. “We feel that the McGuinty government is trying to protect against a backlash from tenants in Toronto.”

Geordie Dent, executive director of the Federation of Metro Tenants’ Associations, said landlords may be complaining now but they weren’t protesting when the province allowed yearly increases in the range of 5% in the 1990s.

The recession has been very hard on many tenants, and unemployment in Toronto continues to hover at about 10%, he said.

”It’s not renting out a movie at Blockbusters — it’s people’s housing,” Dent said. “Any increase right now during this difficult time is hard for any tenant.”

Also, Ontario does not have “real” rent control because the landlord is only obliged to follow the guideline for an existing tenant, he said.

“If you move into a unit, though, a landlord can charge you whatever he wants,” Dent said. “The last tenant could have been paying $500 a month and they can charge you $2,000.”

http://www.torontosun.com/news/canada/2011/01/02/16734661.html