Publicly announced on Friday, June 17, 2016 , the 2017 rent increase guideline is 1.5 per cent and it applies to most private residential rental accommodation covered by the Residential Tenancies Act. The guideline is the most a landlord can increase the rent without applying to the LTB.
The following property types are considered exempt ;as such the guideline is not applicable to:
- Vacant residential units
- Residential units first occupied on or after November 1, 1991
- Social housing units
- Nursing homes
- Commercial property
Timing of rent increases: In most cases, the rent for a unit can be increased when 12 months have passed since a tenant either first moved in or since the tenant’s last rent increase. A tenant must be given proper written notice of a rent increase at least 90 days before the rent increase is to take effect.
Calculation of the guideline: The rent increase guideline is calculated under the Residential Tenancies Act and is based on the Ontario Consumer Price Index (CPI), which is calculated monthly by Statistics Canada. The 2017 guideline is calculated by averaging the percentage increase in the Ontario Consumer Price Index during the previous 12 months from June 2015 to May 2016. By law, the rent increase guideline cannot be more than 2.5 per cent, even if the CPI increase is higher.
Impact to Landlords – Given the annual increases to utilities , insurance expenses, maintenance expenses, common element fees, property taxes, as well as other miscellaneous expenses . The #ZeroVacancyGal cautionary statements for landlords could be one or all of the below relative to context and individual scenarios, for a personal no-obligation consultant, be sure to call 1-888-454-5063 .
Here are the 4 cautionary statements :
1- Do not offer or promise a rent freeze.
2. Do not commit to a longer term lease at the beginning of new landlord/tenant relationship , it is not in your best interests even if stability is your motivation.
3. For properties with all inclusive rent rates – Be attentive and consistent with your rent increases as the consumption of utilities is not within your control or sphere of influence, intention versus actual outcome often fluctuates based on who is paying the bill at the end of the day.
4. A Gentle reminder, regardless of your decision to freeze the rent, increase the rent or increase the rent by above the guideline you are responsible and liable on an annual basis to pay the interest owed on the last month’s rent deposit.
Impact to Tenants – With the McGginty government legislation in 2013, there is now a cap on the rent increase guideline so it cannot exceed 2.5 %, this is a positive in many ways for most tenants, especially those who love older #abodes, with lots of #charm , #character, #maturity , #location , #space, #privacy, #adultfeel , #nonconcretejungle #independentlivingstyle as it offers tenants a constant, their rent increases will always be up to but no greater than 2.5% on an annual basis.
As you begin your search for your next rental, or push the upgrade button or perhaps the downsize button, if nothing else be #grateful you have a roof over your head, and be #thankful someone has risked something to provide that roof to you at a #fair rate.
Summer is here, be sure to enjoy it with head and heart!