Getting the Message Out to Small Landlords Across Ontario! Be Aware The Law Is Changing For Above Guideline Rent Increase Applications in 2018
Successful Ontario landlords know it’s important to always be aware of new laws that regulate our industry. If you are not careful and don’t know the latest changes you could face some severe financial penalties. Those of who have been unfortunate enough to go to the Landlord and Tenant Board know you must be 100% ‘on your game’ and become an expert on the rules and regulations if you are going to succeed.
And there have been many changes since the beginning of 2017.
One of the biggest changes that has impacted small landlords is the change in how we can use “own use” applications to get our properties back. We wrote about these Ontario landlord changes earlier to let everyone know about what is going on so you can prepare and be aware.
Other changes have included the fact landlords with properties built after 1991 are now included under the government rent control umbrella and changes to above guideline rent increases.
An Ottawa landlord wrote on our Members forum in what turned out to be huge thread:
“I have kept my rent increases low over the past few years, sometimes not even raising the rent in order to keep my tenants from looking at other properties and potentially moving. I pay for power and now my bills are becoming so high it’s jeopardizing my ability to even cover my costs! Has anyone ever done an above the guideline increase? Thanks in advance.”
Unfortunately it’s not good news for this landlord as the news about changes didn’t reach her.
New Laws For Above Guideline Rent Increase for Ontario Landlords
Everyone who owns rentals across Ontario please carefully read this message from the Ministry to us, as they know we can reach landlords all over the province:
To: Ontario Landlords Association
Above Guideline Rent Increase Application – The Law Is Changing
On January 1, 2018, two changes to the Residential Tenancies Act that relate to the landlord’s Application For a Rent Increase above the Guideline will come into effect
1. A landlord will no longer be able to apply for a rent increase above the guideline because of utility costs (e.g. fuel, electricity or water) have increased.
2. If a landlord has not complied with an order to fix an elevator (issued by the LTB, the municipality or the technical standards and safety authority) the LTB can dismiss the application or require the landlord to fix the elevators before ordering an above the guideline increase.
A landlord can still apply to the LTB for an increase above the guideline if:
The landlord’s costs for municipal taxes and charges have increased significantly The landlord has done major repairs or renovations (these are called capital expenditures)
or, The landlord has operation costs for security services performed by person who are not employees of the landlord.
Changes to the Landlord and Tenant Board Form L5
The Landlord and Tenant Board has updated the L5: Application for an Above Guideline Rent Increase to reflect the changes.
Landlords need to begin using this new form immediately. Make sure you are getting the latest version of the form by clearing your browser cache to avoid any mistakes. The old version of this forum will be accepted until January 30, 2018.
Getting the Message Out to Ontario Landlords
Small Ontario landlords have faced unfair rules that are biased for bad tenants for years. Now there are even more changes coming that are unfair for Ontario landlords. However, you must follow the rules and be aware of them.
The Ontario Landlords Association is reaching landlords all over the province and helping them be aware of new rules and changes to the way small landlords can run their rental business.
There have been important changes to how the L5 works starting today. We will provide updates on this and how other new changes are impacting our landlord community throughout the years.
Knowledge is power and Ontario Landlords need to be aware of these rule changes in order to succeed.