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Increasing Rent - best way to notify renter

  • Last Updated:
  • May 12th, 2017 11:56 am
Sr. Member
Dec 15, 2015
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Toronto
matdwyer wrote: Yeeeesh. OK you seem reasonable and respectful and not like someone trying to screw a tenant, so here's the best way to do this. What you are proposing will not work, nor will a straight increase now with the The Rental Fairness Act, 2017 (you could try, but when passed as the poster above mentions, they'll be able to roll back any increase after April 20th - that is IF the renter knows, and IF they take the time to pursue it).

Tell the renter that you're seeing the property values in the area rising and considering selling the unit, unless they'd like to sign a new lease. You can ask, or request, a higher than permitted rental increase, but they have every right to say no - the way you get this done is by making them think that the alternative is that you sell (legally, with 60 days notice now that they are month to month) they will be SOL anyway. Keep in mind this DOES make you SOL if you go to sell (you'll have to wait till the end of the lease).

Approach it like you're leaning towards selling, but you like them as tenants and want to keep them long term, so you're going to offer that option to them before listing the unit. Make sure it is clear that they can sign the new lease at the same price plus utilities (don't be a dick and hide this).

If they call your bluff, who cares, just don't list it and then just raise it the maximum allowed (1.5%/yr), or possibly (i'm not sure if this works) you could show the increase in hydro rates to the LTB as a justification for a higher increase (you won't get the utilities excluded that route).
Yes I am very reasonable and respectful. I am not trying to BS them by telling them I will sell if they did not sign a new lease and hope they don't call a bluff. Before I sent them a letter or talked to them I'd have my options made up. I am selling, they are staying with a rent increase or they leave because of the rental increase. It would not be a game.

I wouldn't try to play nice guy or be a dick and force them out. I'd give them the information and that's that. They do not need to know why I raised rent, if they don't like the price they can move.

I am giving them the info they need and nothing more nothing less. In business the more direct you are with people the more respect you will get. I hate people that try and sway your decision because they ultimately did not do their home work.
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Aug 16, 2007
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TheMaterial wrote: Yes I am very reasonable and respectful. I am not trying to BS them by telling them I will sell if they did not sign a new lease and hope they don't call a bluff. Before I sent them a letter or talked to them I'd have my options made up. I am selling, they are staying with a rent increase or they leave because of the rental increase. It would not be a game.
I wouldn't try to play nice guy or be a dick and force them out. I'd give them the information and that's that. They do not need to know why I raised rent, if they don't like the price they can move.
I am giving them the info they need and nothing more nothing less. In business the more direct you are with people the more respect you will get. I hate people that try and sway your decision because they ultimately did not do their home work.
I don't disagree with what you're saying, or your method (I think you're saying what you'd do if you were in OPs situation, or you're OP on a second account?) either way, my advice was to phrase the information to push the tenant to the most desired outcome - if the ideal here is same tenant, above allowed increase then you gotta have them voluntarily pay more, and that's a game of social engineering. That is a very useful skill in life, and yes, it could be one that they see right through, but then you're still at stage 1.

I personally wouldn't offer this suggestion to OP if he were a doing this to juice as much as he can, but in this case he seems like a small time landlord with good intentions.
Member
Oct 2, 2005
426 posts
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TheMaterial wrote: I hate people that try and sway your decision because they ultimately did not do their home work.
If your tenants do their homework they will understand that they are not obligated either to move or accept an increase above what is allowable. (1.5%)


TheMaterial wrote: They do not need to know why I raised rent, if they don't like the price they can move.
You seem to be under the impression that is their only choices. The can also simply stay and decline to pay anything more than what is allowable by law. Even selling doesn't evict the tenant unless the new owner plans to reside in the unit. If they are evicted due to the landlord (either you or the new owner wanting to live in the dwelling) they will be entitled to compensation of one-months rent.


BTW, I'm not saying it is right, I'm saying its what the law has now mandated.
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Mar 31, 2008
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mexicanbandit wrote: If your tenants do their homework they will understand that they are not obligated either to move or accept an increase above what is allowable. (1.5%)




You seem to be under the impression that is their only choices. The can also simply stay and decline to pay anything more than what is allowable by law. Even selling doesn't evict the tenant unless the new owner plans to reside in the unit. If they are evicted due to the landlord (either you or the new owner wanting to live in the dwelling) they will be entitled to compensation of one-months rent.


BTW, I'm not saying it is right, I'm saying its what the law has now mandated.
Looks like the law was made to protect renters from landlords like TheMaterial.
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Feb 28, 2005
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Hey, I wanted to update everyone, the tenant agreed to the new terms, no rental increase, but utilities will be transferred over - this will increase the cost to the tenant about 8% depending on energy/hydro usage.
New lease has been signed and returned to me.

We have a good relationship and I just explained that costs are increasing, and that the tenant would still be below average for the area.
Damage due to RFD Since April 2013: $8758.00
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Nov 2, 2005
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blues45 wrote: Hey, I wanted to update everyone, the tenant agreed to the new terms, no rental increase, but utilities will be transferred over - this will increase the cost to the tenant about 8% depending on energy/hydro usage.
New lease has been signed and returned to me.

We have a good relationship and I just explained that costs are increasing, and that the tenant would still be below average for the area.
Congrats on the win. Hmm, curious how you got him to agree to an 8% cost increase. I hope you didn't mislead your tenant into thinking his choice was a big rent hike or take on the utilities. If he finds out a rent increase above guideline wasn't an option for you this could backfire.

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