[quote user="3canctheayr"] If the tenant leaves and doesn't want to come back, you can raise the rent as much as you want. If they want to come back, you can't raise the rent except by a very small amount, which you are supposed to get LTB approval for.
On the other hand, if the tenant offers to pay you significantly higher rent in return for renovations, you can raise it as much as you both agree to. Almost no tenants are aware of this, or would take the initiative on it though.
This is one of the screwed up aspects of our system: once a tenant is in place, the RTA & LTB makes sure you can't afford to ever renovate or upgrade the unit, until that tenant leaves. That's partly why much of the housing stock becomes so decrepit. [/quote]
That is not entirely true. You cannot agree to any increase in excess of the guideline except in accordance with the rules relating to agreements to increase rent (
s. 121). The maximum allowable increase is the guideline plus 3%.
Generally the rules relating to increasing rents above guideline are not useful for smaller landlords and are quite technical. If you have a building and are looking to recapture major capital repairs they are OK.
[quote user="InvestagainInc"] Good tip. Thanks!
Yes, don't get me started on this system. I wish we had the rules of Nevada or Alberta. [/quote]
After 20 years representing Ontario landlords I run a rental business in Florida.
3 days notice and the Sheriff comes with a gun.