Posts Tagged ‘rent increase’

Landlords in Ontario – The Rent Increase Guideline For 2018 is 1.8%

Saturday, July 1st, 2017

Ontario Landlords Association Membership Rent Increase Guideline for 2018

Our Province Wide Landlord Community Believes the Rent Increase is Too Low and We Need A Better Way to Calculate the Rent Increase Guideline To Help Small Landlords Cover Costs

Every year the Ministry of Housing publishes the Rent Increase Guideline.

Ontario has ‘rent control’ and this guideline informs residential landlords how much they can raise the rent in a given year.

The Ministry comes up with this annual guideline by looking at the Consumer Price Index. This index shows the level of inflation based on prices of such things as groceries and the cost of buying clothes.

How Much Can Ontario Landlords Raise the Rent in 2018?

Based on the Consumer Price Index the Ministry of Housing announced Ontario landlords can raise the rent by a maximum of 1.8% in 2018.

This maximum cap applies if you are going to raise the rent from January 1, 2018 to December 31, 2018.

How Does The Compare To Previous Years?

Ontario landlords can raise the rent up to 1.5% in 2017.

What If You Need To Raise The Rent At a Higher Rate To Cover Costs?

To do this you will have to go through the Landlord and Tenant Board process.

Many OLA members in the Ontario Landlords Association forum have shared their experiences regarding this process.

While some have succeeded, the consensus is that it is a complicated process and policies don’t have a true understanding of the real life financial challenges small residential landlords face.

What If You Face Higher Utility Costs?

Furthermore, with new rules for Ontario landlords coming this year you cannot apply to raise rents beyond the guideline for skyrocketing utility costs. This is one of the reasons more and more small landlords are not renting out inclusive of utilities.

Aren’t Newer Properties Exempt from Rent Control?

A lot of recent rental stock in Ontario has been created by small landlords investing in newer property such as condos. A common question these days in the Ontario Landlords Association forums is about rent control for new rental properties.

For example an Ottawa landlord wrote: “My rental property was built after 1991. Does this mean I don’t have to follow the government rent increase guideline or not?”

In years past, you were exempted but not anymore.

Previously rent control only covered rental properties that were built prior to November, 1991.  This exemption was a strategic decision made to encourage the creation of new rental buildings in the Ontario.

Things have changed this year with the Rental Fairness Act 2017. These new rules mean rent control has been extended to cover rental properties that were built prior to November, 1991.

The Guideline of 1.8% Is Too Low For Me To Keep Up With My Rising Costs

This is a common statement by OLA members.

The Ontario Landlords Association has lobbied for change in how the annual rent increase guideline is calculated. The guideline needs to put far greater weight on the price increases of good and services that impact small landlords.

After all, it costs money for good landlords to run safe, well-maintained rental properties.

Some OLA members suggest a good solution would be for the Ontario guideline to copy what BC landlords have. In British Columbia the guideline is the rate of inflation based on the consumer price index plus 2% (to account for the extra types of costs landlords have).

Landlords Can Raise The Rent 1.8% in 2018

With the importance of owning safe, well-maintained properties and costs rising it’s important for landlords to raise rents annually. We are faced with a very low cap on how much we can raise rents which creates even greater challenges for landlords.

It’s time for the the rent increase guideline to be changed to meet the real needs of residential landlords and to help us improve the quality of the rental stock in Ontario.

It’s time to stop bashing landlords and start working with us to help improve the entire rental industry. This will benefit both good landlords and good tenants.

Have Your Say On Bill 19 (Changing the Annual Rent Increase Guideline Formula)

Friday, February 17th, 2012

February 18th, 2012

 

Small Private Landlords Are Encouraged to Make Sure Your Voice Is Heard

The Ministry recommends that upon the resumption of the legislature on Tuesday, February 21, 2012 – the OLA and its members visit the Ontario legislature website at www.ontla.on.ca daily to follow the progress of Bill 19.

Should Bill 19 pass Second Reading and be referred to Standing Committee, the Ministry encourages the OLA and its members to take this opportunity to participate in the legislative process by making a submission to or appear before the Standing Committee.

For more information regarding the Standing Committee process please contact the Committees Branch of the legislature at 416-325-3500.

What is Bill 19?

The Government has introduced proposed legislation to change how landlords can increase the rent.

Bill 19 proposes to amend the Residential Tenancies Act (2006) so “that the annual Rent Increase Guideline be capped at two and one-half percent.”  It would also ensure that “the guideline would never fall below one percent.”

If passed by the legislature during the Spring 2012 legislative session, the revised formula would be used to calculate the Rent Increase Guideline beginning in 2013.

The proposal would also require that the Ministry review the Rent Increase Guideline formula every four years to determine the effectiveness of the new changes as economic conditions evolve.

Fair? Unfair? Make Your Opinion Known

Bill 19 will in all likelihood be referred to Standing Committee.  You can play a role in how policy is shaped by getting your opinions known via submission or showing up in person.

Follow the news about this and other ways our business environment is being shaped in the Ontario Landlord Forums.

 

Ontario landlord news: politics and rent increases

Friday, September 30th, 2011

“If Re-Elected, a Liberal Government will make Rent Increases Lower”

October 1, 2011

Ontario  landlords faced a historically low allowable rent increase of only 0.7% for 2011 despite facing huge new costs due to the HST.  As inflation rose, the 2012 allowable rent increase is 3.1%, which is still lower than provinces such as British Columbia.

Where do the parties stand on allowable increases?  The Liberals are clear: they will create a formula specifically designed to lower any any future increases.

Dr. Eric Hoskins and the Ontario Liberals have an unmatched record of standing up for and protecting tenants. 

When he got news of the 2012 Rent Increase Guideline, Eric wrote to the Minister of Housing asking for his assurance that if re-elected, our Liberal government will fix the legislation governing the rent increase, and make that increase lower.

The Minister of Housing replied saying that when the Legislature returns in the fall, our Liberal government, if re-elected, will make amendments to the Residential Tenancies Act to bring the rent increase in line with what tenants are facing in the real world

To read the original story, click here

To read the letter from the Minister of Housing, click here

To discuss this on the Ontario Landlord forums, click here

MPP issues bill to address rent control exemption

Friday, June 17th, 2011

The Ontario Landlord Association calls it “irresponsible”

After receiving a complaint from a constituent about a steep rent hike, Norm Sterling introduced a Bill late last month to address a little known part of the Residential Tenancies Act that prevents rent control on properties constructed after 1991. (more…)

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