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- Dec 5, 2007
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Hi All,
I have to send notices of rent increase (Form N1). I know the increase allowed in Ontario for 2009 is 1.8% and wanted to ask the following:
1. Are you rounding or charging by the nearest cent? (i.e. increase rent to $650 or increase to $650.32 based on exact 1.8% increase calculation)
2. Are you collecting different rents from tenants living in different apartments with the same size that USED to pay the same rent before you purchased the property? For example $652.33 from one tenant and $652.32 from the other tenant? So far they have been paying the same amount but I consider using the rent increase to update a different rent for the purpose of being able to tell whose cheque it is if a cheque bounces back. I learned this method from another investor and wanted to ask what you think about the idea and if you do the same(?)
3. Interest accrued on last month rent - are you calculating that for the tenants every year together with the rent increase and adjust the first month rent accordingly? what annual interest should I assume for the calculation? (1.8% as well?)
Thanks,
Neil
I have to send notices of rent increase (Form N1). I know the increase allowed in Ontario for 2009 is 1.8% and wanted to ask the following:
1. Are you rounding or charging by the nearest cent? (i.e. increase rent to $650 or increase to $650.32 based on exact 1.8% increase calculation)
2. Are you collecting different rents from tenants living in different apartments with the same size that USED to pay the same rent before you purchased the property? For example $652.33 from one tenant and $652.32 from the other tenant? So far they have been paying the same amount but I consider using the rent increase to update a different rent for the purpose of being able to tell whose cheque it is if a cheque bounces back. I learned this method from another investor and wanted to ask what you think about the idea and if you do the same(?)
3. Interest accrued on last month rent - are you calculating that for the tenants every year together with the rent increase and adjust the first month rent accordingly? what annual interest should I assume for the calculation? (1.8% as well?)
Thanks,
Neil