I came across this article on Moneyville.ca today and thought I would post my thoughts on my blog seeing as I am not registered with Moneyville.
http://www.moneyville.ca/article/1283748--rental-condos-new-bidding-war-battleground
It is actually scary how little people know about the rental industry and what some of the rules are.
The rules for rental increase, as per the Ontario Landlord and Tenant Board (LTB) are as follows:
- Each year, the landlord can raise your rent by the standard guideline, as set out by the Province of Ontario.
- Until last year, the increase was based partially on the Consumer Price Index (CPI), until this backfired in 2012 with an increase of 3.1% (too much according to most pro-tenant groups)......seems as though they all forgot that the 2011 increase was only 0.7%
- Now.....the minimum increase is 1% and the maximum is 2.5%
- Landlords may apply for an Above the Guideline Increase (AGI) if they have done capital work to a building that would be considered more than general repairs and maintenance (most landlords are actively pursuing this option to make sure they maximize returns).
Now for the BIG ONE that relates to the article mentioned above:
*****If the building was built after November, 1991, rent restrictions DO NO APPLY*****
I suggest that if you are currently renting a fancy new condo, that you re-read that.
Yes, this means that if you are paying $1500 per month this year, your rent could go up to $3000 next year and there is little you can do.
I'm not saying that all landlords will do this as most like to have long-term tenants who care for their property, but it pays to be informed and this might be something that you will want to think about before making the choice between and older rental building and a fancy new condo.
Thoughts?
