Posts Tagged ‘rent increase’

Ontario Landlords Need To Be Protected – The Current System Just Isn’t Fair!

Monday, December 4th, 2017

ola landlords speak out

Ontario Landlords Speak Out and Share Their Concerns and Opinions on the Rental Industry

As part of our “Let’s Improve the Ontario Rental Industry” we have invited landlords and tenants to share their opinions on how we can make these improvements. These opinions are from individual contributors and are not the opinions of the Ontario Landlords Association. We believe by fostering communication between landlords and tenants we can improve the Ontario rental industry.

The Rental Fairness Act Isn’t Fair For Landlords – Ontario Small Landlords Need More Protection

Tens of thousands of small landlords emailed in as part of our drive to create a way for landlords and tenants to communicate with each other to find positive common ground. While there are some unethical landlords out there, by far the vast majority of us try our best to be excellent landlords with attractive, well-maintained rentals.

The vast majority of small Ontario landlords play by the rules and care for our tenants and our properties.

The Ontario Rules Do Not Protect Small Landlords And This Isn’t Fair

One of the most common themes in all the replies was that while landlords want to learn and follow the rules those same rules often don’t adequately protect small landlords.

This means landlords who make sure they do everything according to the Residential Tenancies Act and the Landlord and Tenant Board still find themselves in very difficult situations stemming from bad tenants. These bad situations often mean losing thousands of dollars.

However it also goes beyond just financial losses.

Under the existing system landlords experiencing incredible stress, worry and sleepless nights when they are just using the system in place and following the rules. This isn’t right and this isn’t fair.

Good people making huge investments in our province need to be protected and must not be subjected to tenants who can easily manipulate the rules to cause harm and huge financial losses. Recently there was a good media story of a tenant who created a fake credit report to trick landlords into renting to him. He then ripped off his landlords and also cheated other tenants. He is now wanted by the police.

Let’s Protect Good Tenants, But We Also Need to Protect Good Landlords

Most of our small landlord members were renting themselves not that long ago. We are the working class looking to support our retirements and hopefully get some cash flow as a return on our investments. Many of us rented as students at Ontario universities and colleges and many others rented while beginning their careers.

We support protections for tenants, but we need to also protect good landlords. Currently things are simply not balanced.

What Happened To The Changes To Encourage More People To Invest in Rental Properties?

It was only a year or so ago that that landlords were asked to present needed changes to the Ministry. The request was for current landlords to suggest new policy ideas to help them succeed, and this would in turn encourage more people to become landlords in Ontario.

It was a good idea as with a better, fairer system more people would invest in rental properties and this would lead to more choices for tenants and more affordable rental housing in Ontario.

Our landlord members were not worried about increased competition from new landlords and investors. In fact, they were very enthusiastic and excited about getting changes that are desperately needed to help landlords continue to even run existing rentals. With a better system and more protections, landlords could better deal with bad tenants who abuse the system.

More Protections for Ontario Tenants But What About Fairness for Small Landlords?

When the Rental Fairness Act was announced in April many landlords were excited and expected to hear about new protections for small landlords. An Ottawa landlord organized an online event and many our members networked and watched the news conference on the Premier’s YouTube channel.

After the news conference good Ontario landlords were extremely disappointed, and many were upset.

For while there were many changes designed to help tenants, there was little to help small landlords. No one objected to helping good tenants but wasn’t the goal to encourage more great people to invest and create a lot more amazing rental properties?

A Toronto Landlord asked: “Why are the concerns of small landlords ignored as we are key stake-holders in Ontario and important rental housing providers!?”

Some of the major challenges Ontario landlords are facing include:

Evicting for Smoking

Dealing with tenants who smoke, and have this smoke bother other tenants, has been a problem for many small landlords for years. With new laws regarding marijuana this issue is just going to become larger and we need to find a solution.

Creating a New System to Help Landlords and Tenants with Pets

Our landlord members love pets and many have pets of their own. However, we need a way to make sure tenants take care of their pets and don’t damage the rental property. 

Ontario Landlords Association members suggested we create a voluntary “pet deposit”. Tenants with pets would pay a deposit to protect the small landlord from any damages from the pets (and they do happen). When the tenants move out they will get the deposit back if there aren’t any big damages. If their aren’t any pet damages and the landlord doesn’t give the deposit back the tenant can take pictures, file at the LTB, and get the deposit back.

Making the Rent Increase Guideline More Fair For Service Oriented Small Landlords

With even newer rental properties covered by the rent increase guideline (which is only 1.8% in 2018) we need a way to make sure the guideline covers the true cost increases landlords face.

Making the Landlord and Tenant Board More Efficient and Effective

When landlords have problems with renters in their properties we have to go to the Landlord and Tenant Board (LTB) to seek justice and fix the problems. While most LTB staff are hard working and professional, the way the LTB is designed needs to be improved.

-We cannot continue to have landlords waiting for weeks or even months to even get a Hearing date.

-We cannot continue to have tenants ‘ambushing’ landlords with maintenance claims at the Hearing.

-We need the Enforcement Office to enforce LTB evictions in a time sensitive way, meaning days not weeks or months 

This is just the start of issues that need to be addressed.

Closing Loopholes Exploited By Bad Tenants

We need to make sure the Landlord and Tenant Board process is fair and end loopholes that delay evictions. Some unethical tenants can delay being evicted for months.

The Rules For Small Landlords Need To Change

Small landlords are not huge corporations, massive REITS with stockholders and millions of dollars available from investors from all over the country and around the world.

Small Ontario landlords are working people who believe in the future of our province and have invested their hard-earned savings into Ontario rentals hoping for a better future. Many landlords are newcomers to Canada who want to run successful rental businesses as part of their contributions to their new country.

Ontario Landlords and Tenants Speak Out: “I Wish The Rental Fairness Act Was Fair For Landlords!”

We have asked many of the landlords who emailed in to expand on their concerns and stories of challenges they have faced owning rental properties in Ontario. We have also asked Ontario tenants who wrote in the same thing and look forward to posting their opinions and ideas.

By working together we can create a better, fairer Ontario rental industry that helps both good landlords and good tenants.

The current system just isn’t fair for small Ontario Landlords and that’s not fair

We need changes to be made to protect small landlords or we will see a big drop in investment and less high quality and affordable rental properties. We aren’t huge corporations who can put up ads near Queen’s Park and hold golf tournaments and invite Brian Mulroney to sip champagne with us…we are too busy working and taking care of our rental properties.

Who are small landlords?

We are teachers, contractors, electricians, firefighters, police officers, nurses, doctors, lawyers, Realtors…we are the people of Ontario. And we have been treated unfairly for too long.

Small landlords need support as we truly are important stake-holders in Ontario and need to be protected as the current system simply isn’t fair.

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…)