Rent Increase Above the Annual Guideline (3.1%)

[Kevin86]

Hi,
Just wondering what is the likelihood for getting approved by OLTB for a rent increase (more than the allowed 3.1% for 2012) for a building that just been finally turned over from the builder to the condo board. So the tenancy started after the "occupancy" and the building is finally complete and done. So is it likely to be approved for an increase above 3.1%.
I understand that the rents can be increased due to the increase in municipal property taxes but can it be increased due to the changes in the way building looked at occupancy vs after the final completion.

Thanking you in advance.

[Alex7]

I am not too sure but what I have heard, it is not easy to be approved for above the guide increase. But I guess it depends on the building and I think if that building has been approved for a higher increase, then each of the units will be approved. I could be wrong.

[Kevin86]

Thanks, Alex.

Does anyone else have more insight in the rent increase? Are you aware of any buildings that have been approved for rent increase above 3.1?

[AKS]

Thanks, Alex.

Does anyone else have more insight in the rent increase? Are you aware of any buildings that have been approved for rent increase above 3.1?

Some posters have mentioned that the rent increase doesn't affect buildings built after 1997. So you can increase as much as you want.

[InsiderCondos]

You are allowed to increase rent by whatever amount you want if the condo was built after Nov 1990. I have done that many times for my clients. You don't need to go to OLTB.

[ISYM]

Kevin, your condo should be exempt from the rent guidelines - so far. You can contact the Landlord and Tenant Board at 1-888-332-3234 to get their answer.

[James]

Reference the following excerpt from the Residential Tenancies Act section 6. (2):

Rules relating to rent
(2) Sections 104, 111, 112, 120, 121, 122, 126 to 133, 165 and 167 do not apply with respect to a rental unit if,

(a) it was not occupied for any purpose before June 17, 1998;

(b) it is a rental unit no part of which has been previously rented since July 29, 1975; or

(c) no part of the building, mobile home park or land lease community was occupied for residential purposes before November 1, 1991. 2006, c. 17, s. 6 (2).


Link: http://www.ontariotenants.ca/law/act01.phtml

The following paper has some more information on this as well. See page 6-7: http://www.cleo.on.ca/english/pub/on...t/rentincs.pdf

[interested]

^^^
You can raise as much as you want. That said, the market will dictate proper rent. If you have a good tenant who is no trouble, pays the rent, tread carefully. A good tenant is worth more than the aggravation of a move in/move out. If you are significantly below market rent, then you should be able to work your way up to market.

[wang888]

what determines rent increase?

[dt_toronto_geek]

what determines rent increase?

1) The annual guideline in Ontario, for example 2012 was set at 3.1%. Btw the next four years will only see a 2.5% capped increase each year, plus any AGI's that a landlord may apply for through the Landlord and Tenant Board

2) Landlords can apply to the Landlord and Tenant Board for an increase above the guideline (an AGI), if their costs for the municipal taxes or utilities have increased by more than the guideline plus 50 per cent. Landlords can also apply for an increase above the guideline for operating costs related to security services and for eligible capital expenditures such as balcony or garage restorations, new windows, roof replacements and things like that which I think is totally unfair.

We fought a 1% AGI increase in 2010 and we just found out in early June that we lost. We hired a lawyer through the Tenant Association to write a legal brief for us then the Association represented the residents at the Rental Tribunal in early January without legal representation, but after the Hearing we realize that it wouldn't have made a difference. Two months ago we started hearing on our discussion board that we are getting nailed again this year with another 2.9% AGI this year as it is being hand written in on people's leases now. We have not received anything formal from the Landlord Tenant Board yet explaining what the AGI is for, nor the landlord. They did restore the underground parking garage in 2010 & 2011 so we think that's what we're getting hammered with.