Posts Tagged ‘Landlord and Tenant Board’

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

Ontario Landlord Question – How Much Can I Raise the Rent in 2013?

Monday, December 31st, 2012

January 1st, 2013

Ontario Landlords How Much Can I Raise the Rent in 2013

 

Ontario Landlords Can Raise the Rent 2.5% in 2013

It’s a question landlords all over Ontario are asking.

In Ontario, landlords can raise rent every year by a certain percentage that the provincial government allows.

In past years, this percentage was based on the Computer Price Index (CPI) which is a measure of inflation.For example in 2012 the allowable increase was 3.1%

According to the Rent Increase Guideline published on the Landlord and Tenant Board Website, the CPI is a reliable and objective way to measure inflation, see a broad picture of changes in the price of goods and services in Ontario, and a sound way to set the annual rent increase.

Except for 2013, the Ontario Liberal Government threw out everything they’ve been saying about rent increases for the past nine years.

In June 2012, the government decide to put forward the Resident Tenancies Amendment Act to cap the maximum amount Ontario landlords can increase the rent for tenants occupying our rental properties.

The Liberal government stated this will create stable rents for tenants while landlords will still get a “fair return” to maintain high quality rentals. Therefore it looks like they are admitting setting the rental increase guideline based on the CPI was bad policy on their part…or political catering to tenant voters during an election year is how rental policy is truly handled in Ontario.

This means that despite inflation, higher taxes, higher costs and higher bills landlords can only raise the rent by 2.5% in 2013.

You cannot simply tell your tenants you are going to raise the rent. There are rules and procedures you must follow.

Rules For Raising the Rent

1. The 12 Month Rule

Landlords must wait at least 12 months after tenants move in before increasing the rent.

2. The 12 Month Rule Part II

All future increases must be 12 months apart from the last increase.

3. Proper Notice

Landlords must also provide tenants with written notice 90 days before the rent goes up.

4. Use the Notice of Rent Increase Form

The Landlord and Tenant Board website has a form N1 you can use to give notice about a rent increase.

 

Despite replying on the CPI Index to set the annual rent guideline in the past, and landlords facing higher costs in 2013 rents are capped at only 2.5%. Another reason to make sure you raise the rent in 2013 and make sure you find great tenants

 

A Warning For All Landlords in Ontario

Saturday, May 5th, 2012

May 5th, 2012

Tenant Nina Willis, 48, faces two fraud and two forgery charges in relation to her tenancy at a Toronto landlord’s house.

The Story about the latest “Tenant From Hell” begins

It seem like the beginning of a mystery novel.  Unfortunately it isn’t fiction.  It isn’t a novel.  And it isn’t a mystery.

“Nina Willis seemed like the ideal tenant” says the Toronto Star investigation.

The investigation goes on.

“She was well-spoken and tidy, posing as an employee for a cellphone company with offices in Toronto and Montreal. She came with glowing references.”

Here comes the surprise.

“What landlord Darius Vakili, 63, didn’t know was that the 48-year-old Willis was a tenant from hell, with a track record of bounced cheques and eviction notices.”

The Story Continues, Implicating the System Landlords Face in Ontario

“A Star investigation reveals that the rules governing the provincial Landlord and Tenant Board have allowed people like Willis to flourish. Privacy legislation means her dodgy past as a tenant is kept secret from prospective landlords.”

Thank you Toronto Star

The Ontario Landlords Association would like to thank the Toronto Star for their story on the latest “Tenant From Hell.”

We are an association of small private residential landlords, and while many of us have faced terrible tenant problems due to an unfair Residential Tenancy Act and an unfair Landlord and Tenant Board, facing tenants such as the one in the Toronto Star article is a wake-up call for all of us.

The OLA Speaks Up for Landlords

This story is especially important for the OLA because one of the landlords in the article is a new reader of the OLA.

Furthermore, when we first heard about what was going on, OLA editors worked hard to get the story in the news and get the ball rolling for justice.

The OLA began the push to get her story into the media, resulting in a Toronto Star story on October 18th, 2011.  The Star story was headlined

“A bad tenant cost me $28,000 over 9 months!” and can be found here.

So What Can We Learn From This?

There are lessons we can learn from the Toronto Star story about Nina Willis.  Lessons that landlords can learn, unfiltered by lawyers or paralegals or others who make money representing landlords in need.  If there is no “need” there is no money paid.  Paying out huge legal fees means only more losses for landlords already suffering.

Lesson #1:  The Residential Tenancies Act and the Landlord and Tenant Board Need To Change

We call on the government to have summit of stake holders to re-examine the RTA and take a close look at how the Landlord and Tenant Board  operates and how we must change the RTA and reform the LTB.

Lesson #2: If You are a Landlord In Ontario You Must Be Professional in How you Do Business

Landlords young and old, wherever you are, we advise you to do proper screening to avoid ‘pro tenants’.  The OLA offers a low-cost path to incredible screening tools.

If the landlords in the Toronto Star article were OLA members, and did a credit check costing only $10…they would have avoided their “Tenant From Hell” and the emotional and financial nightmares associated with having such a tenant.

 

Don’t Raise Landlord and Tenant Board Filing Fees for Landlords!

Tuesday, April 10th, 2012

April 13th, 2012

The 2012 Ontario Budget

During his budget, Liberal Finance Minister Dwight Duncan focused on repairing the debt problem the province of Ontario faces. Minister Duncan spoke about full cost recovery from fees charged from programs.

Tenant Activists Support More Fees for Landlords

Leading influential tenant activists have commented on the budget speech and have stated that if we have an austerity budget “everybody has to do their bit…how about landlords?”

Does this Mean More Fees for Small Landlords?

We have also received word, via emails sent in, social media, and posts on the Ontario Landlords Association forums, fees for Landlords to file at the Landlord and Tenant Board may be going up.

Enough is enough

It wasn’t long ago LTB filing fees were $150. They were then raised to $170 with little protest from landlords.

Times have Changed.  We will no longer be silent.

Any increase in LTB filing fees will not go unnoticed and silent as they did before. Already many small private residential landlords are struggling to keep above water with the long and arduous LTB process. Raising filing fees is unacceptable since few landlords can ever collect the fee back, even after winning at the LTB and getting an eviction.

Does the Government Value Small Private Residential Landlords?

If they do, not raising fees is a good first step.  The current rules are  “one size fits all legislation” which lumps small private residential landlords with large corporate landlords.

How Can the Government Promote Savings in the Landlord/Tenant Industry?

Let’s focus on making the eviction process more efficient! Rather than put more fees on Landlords, let’s have a meeting of all stake-holders and help the province save money with a more efficient and productive LTB.

The Landlord Tenant Act Favours Tenants

Thursday, March 15th, 2012

March 16th, 2012

 

Turner continues to describe situations he has faced as a small unit landlord:

As a small-unit landlord, I have been in similar circumstances. Several years ago I went through the proscribed eviction process for a deadbeat tenant. In the remarkably short time of three months, by the bureaucratic standards of the landlord-tenant board, I was able, with the help of a sheriff, to evict the tenant – but not before they damaged the apartment to the tune of $20,000, not including $4,000 in unpaid rent.

Turner explained landlords are just like small businesses, like any independent store.  Landlords provide living space in exchange for payment.  Landlords pay taxes and even support other local businesses like suppliers…just like other small businesses.

Turner goes on to explain if you go to any store, take an item without paying, the owner will call the police and the thief will be arrested!  This is the same as tenants moving in to a unit and not paying, yet tenants are offered special legal protections no one else gets!

He says the Residential Tenancies Act favors tenants over the landlord by a wide margin.  According to Turner, even if you receive an eviction notice from the Landlord and Tenant Board you still have to pay the Sheriff to enforce it.