Ontario Rent Increases

[realfortin]

I understand that in Ontario we can only raise the rent once a year and to the amount specified by the board. Let`s say a tenant has been in the apartment 5 years since 2003 and has not had a single rent increase.

Fictitious numbers:

500/month

Ontario stated increasesfictitious)

2004 2%
2005 2%
2006 2%
2007 2%
2008 2%

When it comes the time that I want to increase the rent, am I only allowed to increase for 2008 or can I increase for the amount since one year after he rented the place ie 2004, 2005, 2006, 2007, 2008? = 10% or am I stuck wih 2008`s 2% only?

Real

 

[dplummer]

If the rent increases were not applied within the specific year, your out of luck. The only way to get market rent is to have the tenant vacate & adjust the rent for the new tenant. Very important to increase the rent yearly even if it`s only 1-2% allowed by law.

Doug

 

[Thomas Beyer]

2% !!

if vacant: go to market rent !

 

[realfortin]

Ok, I pretty much knew that it was the case, but here`s for hoping. That`s when you need a lot of family members that want to move into your apartments for 6 months.

Long term tenants are good but certainly hurts the cash flow.

QUOTE (thomasbeyer2000 @ Aug 15 2008, 04:18 PM) 2% !!

if vacant: go to market rent !

 

[terri]

the 2008 guideline for rental increase in Ontario is only 1.4% and you need to give 90 days notice. At this point you might as well wait and give notice for a rental increase for jan 09, the rental guideline for `09 is a whopping 1.8 %, not much of a difference but at this point the earliest you could increase is for NOV and then you couldn`t increase again for another 12 months so it actually make sense financially to wait the extra 2 months.

You can also apply to LTB for an increase above the guideline due to increase in utility costs and taxes, but this increase is also miniscule.

check out the LTB website for all the details,

http://www.ltb.gov.on.ca

T.

 

[debe057]

Whilst we are on this topic of Ontario Rents......here is my situation.

One of my tenants in a 2 br duplex has been asking me to build a 3rd bedroom in the basement. I have no problems doing so, I have done this in the past for a vacant unit and increased the rent to reflect the additional bedroom..(however the unit was vacant). The problem here is, the tenant is still living in the duplex and wants the 3rd bedroom built. We had agreed that upon completion of the room the rent will be adjusted to reflect the market. In this case this adjustment will be more than (1.2 % or 1.8 % etc) allowed in Ontario. SO...ethics asside...do I get this tenant to move out and then move back in....the same month so that I can adjust the rent after the room is built?

 

[Ready4Rent]

QUOTE (debe057 @ Oct 11 2008, 09:44 AM) Whilst we are on this topic of Ontario Rents......here is my situation.

One of my tenants in a 2 br duplex has been asking me to build a 3rd bedroom in the basement. I have no problems doing so, I have done this in the past for a vacant unit and increased the rent to reflect the additional bedroom..(however the unit was vacant). The problem here is, the tenant is still living in the duplex and wants the 3rd bedroom built. We had agreed that upon completion of the room the rent will be adjusted to reflect the market. In this case this adjustment will be more than (1.2 % or 1.8 % etc) allowed in Ontario. SO...ethics asside...do I get this tenant to move out and then move back in....the same month so that I can adjust the rent after the room is built?

You can get an additional 3 percent on top of the normal increase if the tenant agrees to a N10, but I assume you are looking for a larger increase.