Rent increase

zarmas01

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Aug 22, 2013
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#1
I recently acquired a property where one of unit is rented for well below market rent and I had to assume the tenant. Tenant has been renting month to month since 2013 and previous landlord has not increased the rent since 2012.

Long story short can increase the rent beyond the allowable limit? If I do and tenant signs the lease could there be repercussion later on that I should be worried about?


The property you guessed it is in Ontario.

Thanks
Mark


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zarmas01

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Aug 22, 2013
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#3
Thanks Thomas, so say for example I increase the rent by $100 instead of $20 a month I will be breaking the law? Even if tenant agrees to the $100 increase and sign the lease.


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ThomasBeyer

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#4
Thanks Thomas, so say for example I increase the rent by $100 instead of $20 a month I will be breaking the law? Even if tenant agrees to the $100 increase and sign the lease.


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If tenant agrees then of course one can amend any agreement. Just not unilaterally.

You could, for example, agree to replace the aging carpet, change the old ugly bathtub or fix up the kitchen or appliances, so the contract shows some benefits. Why would tenant agree to a $100 increase if he doesn't have to ?
 

Tina Myrvang

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#5
https://www.ontario.ca/page/rent-increase-guideline

For more clarity on rental increases in Ontario. Rental increases currently in Ontario are 1.8%. I agree with Thomas, if you do not have a lease you can give her 60 days notice to vacate or pay the increase. Make sure you investigate the requirements for a tenanted property.
 
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Teresa10609

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Nov 23, 2016
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#8
Thanks Thomas, so say for example I increase the rent by $100 instead of $20 a month I will be breaking the law? Even if tenant agrees to the $100 increase and sign the lease.


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If tenant agrees then of course one can amend any agreement. Just not unilaterally.

You could, for example, agree to replace the aging carpet, change the old ugly bathtub or fix up the kitchen or appliances, so the contract shows some benefits. Why would tenant agree to a $100 increase if he doesn't have to ?
To add to Thomas' advice, make sure they sign an N11 form effectively ending the previous tenancy and then sign the lease with new amount. This is key to avoid the tenant turning around and saying they did not agree to that at the LTB.

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Alvaro Sanchez

Ottawa-Gatineau Investor
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Jun 5, 2009
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#9
What's the difference in rent a month? 100,200,500?

I recently acquired a property where one of unit is rented for well below market rent and I had to assume the tenant. Tenant has been renting month to month since 2013 and previous landlord has not increased the rent since 2012.

Long story short can increase the rent beyond the allowable limit? If I do and tenant signs the lease could there be repercussion later on that I should be worried about?


The property you guessed it is in Ontario.

Thanks
Mark


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Kristyn Wuebbolt

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Jul 10, 2018
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#10
Hi Zarmas,

This article might help you clarify what you're legally allowed to do.

https://medium.com/real-estate-simp...landlord-increase-a-tenants-rent-c671ce4f112e

Unfortunately, you cannot increase rent to any desired amount for existing tenants, regardless if there rent is well below market value. However, there many be a way to slightly increase the rent by applying for a rent above guideline increase - in order to apply for the above guideline increase, one of the following circumstances must apply to you (see article for details).

If the tenant has agreed to an increase, ensure you get this in writing. Technically, if the tenant becomes aware in the future that it's not permitted by law, they could come after you for being over charged on the bases that they were not aware of their rights.

Beaware that The Landlord and Tenant Board is becoming even more strict on landlords and more favourable towards tenant rights (as they've always been).

As for the above advice to sign a new lease - in Canada, leases automatically roll over regardless of whether a new lease in signed. For our units, we have tenants sign a year lease and yet still are not allowed to increase rent using a new lease. If someone else has experience with increasing rent via. new leases for existing tenants - i'd love to hear if it's possible! That'd be great news. However, it's always been my understanding that due to the nature of leases rolling over - using a new lease to increase rent is not allowed - as the tenant doesn't have to sign a new lease to stay in the apartment.
 

zarmas01

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Aug 22, 2013
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#11
The outcome:
I managed to increase the rent by $100 a month after the tenants themselves suggested they are comfortable with $100 a month increase.

This is also based on a fact that added an additional tenant who was not on the original lease.


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