Hello,
I hope you are doing well.
My friend spent around $18,000 to install a new roof a few months ago for a 4-plex he owns in Ontario.
I have a question about increasing the rent above the guideline in Ontario, say by 5.5% in 2025 if possible instead of 2.5% based on the guidelines.
If I understand correctly, you can increase the rent using:
- Form N10 if the tenants agree and sign. This is the easiest way IF your tenants agree. However, it's a one time thing.
Or
- Another option is to serve N1 and check off the boxes saying "This rent increase is more than the rent increase guideline, but: The rent increase must be approved by an order under the Residential Tenancies Act, 2006. I have applied to the Board for a Rent Increase Above the Guideline."
To proceed with that last option I think you would also have to file Form L5 - Application for a Rent Increase Above the Guideline. If successful, meaning approved by the board you may be able to increase by 3% above the guideline for 3 years in a row, not just one time like in the first option above with form N10.
Which option would you prefer or recommend?
I think installing a new roof meets the definition of a Capital Expenditure as required for Form L5.
But is $18,000 a high enough amount for the board to justify a 5.5% increase per year (3% above the guideline) for 3 years in a row?
It would be great if someone here has this kind of experience and can share either using N10 or L5 with the board. How did it go? Did the board approve 3% above the guideline for 3 years in a row for you? Do you know how they calculate the increase they approve or what is the minimum amount required to even be considered for this application? For example, is 5K expense not enough and 50K good enough for this kind of request?
Thank you!
Joel
I hope you are doing well.
My friend spent around $18,000 to install a new roof a few months ago for a 4-plex he owns in Ontario.
I have a question about increasing the rent above the guideline in Ontario, say by 5.5% in 2025 if possible instead of 2.5% based on the guidelines.
If I understand correctly, you can increase the rent using:
- Form N10 if the tenants agree and sign. This is the easiest way IF your tenants agree. However, it's a one time thing.
Or
- Another option is to serve N1 and check off the boxes saying "This rent increase is more than the rent increase guideline, but: The rent increase must be approved by an order under the Residential Tenancies Act, 2006. I have applied to the Board for a Rent Increase Above the Guideline."
To proceed with that last option I think you would also have to file Form L5 - Application for a Rent Increase Above the Guideline. If successful, meaning approved by the board you may be able to increase by 3% above the guideline for 3 years in a row, not just one time like in the first option above with form N10.
Which option would you prefer or recommend?
I think installing a new roof meets the definition of a Capital Expenditure as required for Form L5.
But is $18,000 a high enough amount for the board to justify a 5.5% increase per year (3% above the guideline) for 3 years in a row?
It would be great if someone here has this kind of experience and can share either using N10 or L5 with the board. How did it go? Did the board approve 3% above the guideline for 3 years in a row for you? Do you know how they calculate the increase they approve or what is the minimum amount required to even be considered for this application? For example, is 5K expense not enough and 50K good enough for this kind of request?
Thank you!
Joel