December 25th, 2013
How Much Can Landlords in Ontario Raise the Rent in 2014?
If you are a landlord in Ontario you face what is called ‘rent control.’
This means in many cases how much you can charge for rent is controlled by the government.
As we wrote in June about how much Ontario landlords can increase the rent in 2014 the government announces a Rent Increase Guideline, usually in the early summer before the coming year.
This is the announcement from the Ministry of Municipal Affairs and Housing informing Ontario landlords rent increases for the next calendar year.
We have had lots of landlords from all over the province asking us to clarify and confirm how much they can raise the rent in 2014 and here is your answer:
HOW MUCH CAN ONTARIO LANDLORDS RAISE THE RENT?
Ontario Landlords Can Raise the Rent 0.8% in 2014
That is the allowable increase according to the Ministry of Municipal Affairs and Housing for the province.
Is the Ontario Rent Increase Guideline Too Low?
Many landlords think it is.
After all, landlords still have not been allowed to catch up to the added costs for when the HST was implemented.
Is 0.8% a realistic example of the increased costs Ontario landlords face?
Whether you are a Toronto landlord, invest in Ottawa rentals or have properties in a smaller area and become a Newmarket landlord, many property investors and landlords say no.
Let’s look at some of the increasing costs for landlords in our province:
1. How about the increased prices of your property taxes?
2. What about increase costs from the people we depend on to maintain our rental units?
3. Many small landlords are facing increases over 5% for services such as water.
I Need To Do Major Improvements on the Property Including a New Roof.
Is There A Way To Increase the Rent More Than 2.5%?
If you want to raise the rent more than the guideline you can apply for what is called an Above Guideline Increase through the Landlord and Tenant Board.
You can apply if the cost of your municipal taxes and charges or your utilities have increased more than the following formula: the rent increase guideline + 50%.
You can apply for increased costs due to capital expenditures or investing in security services.
Are All Residential Landlords Covered By The Rent Increase Guideline?
No, not all.
You do not have to follow the Guideline if your situation in one of the following:
1. The rental was not occupied for any purpose before June 17th, 1998
This means your rental property was built after June 17th, 1998 or you have built a new unit in your property that was never occupied before June 17th, 1998.
2. The rental unit was never previously rented since July 29th, 1975
This means only the owner has lived in the property since the date of July 29th, 1975.
3. No part of the building was occupied for residential purposes before Nov. 1st 1991
This means the property was converted from commercial to residential or was not built or occupied until after November 1st, 1991.
Ontario Landlords and the 2014 Rent Increase Guideline
For more information see the Landlord and Tenant Board Website
To discuss this and other issues go to the Ontario Landlord Forum
Tags: How Much Can I Raise the Rent 2014?, Newmarket landlords, Ottawa landlord, Toronto Landlords
