Rent increases for renovations

[Runman]

Hey everyone,
I was wondering if anyone has any experience with rental increases secondary to renovations in the province of Ontario.
For example, let`s say I wanted to renovate my apartment building and needed the tenants to leave, can I do this? Also, can I raise the rents after?
I know that this is a proven strategy for wealth creation, but also highly scrutinized by the tenant boards.

What do you all think about this?

Thanks

Josh

 

[JohnBeddome]

QUOTE (Runman @ Jul 6 2010, 09:19 PM) Hey everyone,
I was wondering if anyone has any experience with rental increases secondary to renovations in the province of Ontario.
For example, let`s say I wanted to renovate my apartment building and needed the tenants to leave, can I do this? Also, can I raise the rents after?
I know that this is a proven strategy for wealth creation, but also highly scrutinized by the tenant boards.

What do you all think about this?

Thanks

Josh


Hi Josh,

The requirement is 6 months written notice to tenants. Improvements need to be necessary or significant - ie. permits required? Also, the tenants have the right to have their suite back afterwards at moderately adjusted rents. If however, the tenants agree to vacate prior to the 6 months and not hold their unit then they should sign an N11 agreement to vacate.

If you are purchasing a rental property and the Seller is agreeing to provide you with vacant possession on closing (the best way to use this strategy) make sure that your Purchase Agreement includes a condition regarding the Seller producing you with signed N11 forms for all units.

 

[Thomas Beyer]

QUOTE (Runman @ Jul 6 2010, 06:19 PM) ..province of Ontario.
For example, let`s say I wanted to renovate my apartment building and needed the tenants to leave, can I do this?
..
yes, with certain notices and if you don`t raise rents afterwards. or if you move in yourself.

Some links:

..Also, can I raise the rents after? I know that this is a proven strategy for wealth creation, but also highly scrutinized by the tenant boards.
..
not for the previous tenant who has a right to come back .. but yes for a new tenant if old one has left peacefully, or yes in AB and SK and some other provinces you can !

Thus, the best option is to give an incentive to move, say $2000 plus moving costs of $1000. Then you have an empty unit, can renovate and re-rent at market !

Consider if you wish to invest in left-of-centre jurisdictions like Quebec, Ontario or the US !

QUOTE (Runman @ Jul 6 2010, 06:19 PM) ..What do you all think about this?

..

It doesn`t matter what we think. It matters what the law allows ! As stated, the best option is to give an incentive to move, say $2000 plus moving costs of $1000. Then you have an empty unit, can renovate and re-rent at market !

 

[Runman]

Thanks everyone for their responses.

Josh