Real Estate

Rent increase at 50%

  • Last Updated:
  • Oct 16th, 2017 11:41 am
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[OP]
Deal Guru
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Jul 27, 2006
10528 posts
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Scarborough

Rent increase at 50%

Received a notice that rent was increasing 50% starting in the new year. I was told it was due to rising costs for the landlord. They want me to sign a new lease at the increased rate.

What are my course of actions? I see that guidelines are 2% but exceptions can exist. I was not handed an 'official' N1 form so I don't have any proof that the landlord went to the LTB to get this exception.

Should I take this case directly to the LTB?
159 replies
Member
Jun 15, 2017
263 posts
118 upvotes
What are those exceptions?
And how much you think is reasonable to be inline with 6 months back market?

How long are you there? How many times did they raise the rent?
Deal Addict
Nov 22, 2009
1717 posts
208 upvotes
Toronto
You even said that you've been there for 5 years with no rent increase for 4 years (you deleted the post right after). I don't think it's reasonable to have only a 2% increase.

Year 1: Rent x 2% inflation = 1.02 Rent
Year 2: (1.02 Rent) x 2% inflation
Year 3: and so on.
[OP]
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Jul 27, 2006
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Scarborough
What does reasonable or back market matter?

The set rate for 2018 is currently 1.8% according to this https://www.ontario.ca/page/rent-increase-guideline

I am reading this document right now and it appears that I might be able to seek further evidence of 'increases' over the years that would amount to a 50% increase.

http://www.sjto.gov.on.ca/documents/ltb ... 5_2015.pdf

Why am I to blame for the landlord not increasing the maximum allowable rent per year when they had the chance? So the question becomes whether 50% is 'reasonable'?
Last edited by thechampion116 on Oct 12th, 2017 3:00 pm, edited 1 time in total.
Deal Addict
Nov 22, 2009
1717 posts
208 upvotes
Toronto
thechampion116 wrote:
Oct 12th, 2017 3:00 pm
What does reasonable or back market matter?

The set rate for 2018 is currently 1.8% according to this https://www.ontario.ca/page/rent-increase-guideline

I am reading this document right now and it appears that I might be able to seek further evidence of 'increases' over the years that would amount to a 50% increase.

http://www.sjto.gov.on.ca/documents/ltb ... 5_2015.pdf

Why am I to blame for the landlord not increasing the maximum allowable rent per year when they had the chance?
How much are you paying for rent right now? Regardless of its reasonability, 50% increase is HUGE. However, there's a difference between 50% increase for $300/month vs 50% increase for $2000/month.
[OP]
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Jul 27, 2006
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Scarborough
blitzforce wrote:
Oct 12th, 2017 3:06 pm
How much are you paying for rent right now? Regardless of its reasonability, 50% increase is HUGE. However, there's a difference between 50% increase for $300/month vs 50% increase for $2000/month.
$1000 to $1500.
Deal Addict
Dec 6, 2006
3708 posts
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Toronto
thechampion116 wrote:
Oct 12th, 2017 3:09 pm
$1000 to $1500.
For what and where?

And what are the exceptions used as rent increased? And ask for the official form?
[OP]
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Jul 27, 2006
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Scarborough
$1000 includes water. I pay for other utilities and any additional expenses as required (internet, cable, etc).

Based on the LTB, exceptions for above standard increases in rent include capital expenditures, 'extraordinary' increases in utilities, and security services. I personally haven't seen any additional capital expenditures to enhance the location nor do I have security services.

I am not familiar with everything so just reading about it but there is a lot of information online and was hoping there might be an expert or someone who had a similar experience.
Deal Addict
Feb 22, 2011
1676 posts
1475 upvotes
Toronto
They cannot increase rent more than the max without a hearing with the board. You must be notified of the hearing and have an opportunity to challenge it.

"If your landlord applies for an above-guideline increase, the Board will schedule a hearing. Your landlord must give you a copy of the application and a Notice of Hearing at least 30 days before the hearing."

"You and other tenants affected by the application have the right to challenge your landlord's application at the hearing. For example, you might be able to argue that the work done by your landlord was not needed or did not cost what your landlord says it did."

http://www.cleo.on.ca/en/publications/r ... -guideline
[OP]
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Jul 27, 2006
10528 posts
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rjg4235 wrote:
Oct 12th, 2017 3:28 pm
They cannot increase rent more than the max without a hearing with the board. You must be notified of the hearing and have an opportunity to challenge it.

"If your landlord applies for an above-guideline increase, the Board will schedule a hearing. Your landlord must give you a copy of the application and a Notice of Hearing at least 30 days before the hearing."

"You and other tenants affected by the application have the right to challenge your landlord's application at the hearing. For example, you might be able to argue that the work done by your landlord was not needed or did not cost what your landlord says it did."

http://www.cleo.on.ca/en/publications/r ... -guideline
Thanks for this. Thats something I haven't seen yet. Based on your link, the allowable increase can be whatever they want if its for utilities and taxes so in the end I might lose anyways. The only silver lining is I haven't yet heard of any notices about a board hearing.
Member
Jun 15, 2017
263 posts
118 upvotes
thechampion116 wrote:
Oct 12th, 2017 3:09 pm
$1000 to $1500.
Location?
Type of unit? Condo? 1 BR?
When was the last time your rent increased?

To be honest, if you want to get a reasonable and acurate response, better to furnish all details, otherwise if you want to see response what you are thinking is right, you can withhold certain info.


This rental control act screwing many...
Earlier there may be few exceptional cases of landlords increasing abnormally...
But the majority of landlords used to either increase rent below guideline or no increase at all, that is many landlords were...
But this media projected all abnormal cases and made province to enforce rules and now it is effecting everyone including some landlords who thought iit was reasonable not to increase or thought to increase after a couple of years.... now making sure it is increased
[OP]
Deal Guru
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Jul 27, 2006
10528 posts
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Scarborough
My last increase was a few years ago. I don't want to provide too many details but I am obviously in Scarborough and its 1 bedroom.

I don't mind the Ontario standard increase year to year but a slap of 50% at once is rather troubling. Part of me feels like I am being pushed out so they can get me out and another tenant in at a much higher rater than even the 50% increase.
Deal Addict
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Mar 23, 2008
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Edmonton
blitzforce wrote:
Oct 12th, 2017 2:59 pm
You even said that you've been there for 5 years with no rent increase for 4 years (you deleted the post right after). I don't think it's reasonable to have only a 2% increase.

Year 1: Rent x 2% inflation = 1.02 Rent
Year 2: (1.02 Rent) x 2% inflation
Year 3: and so on.
1.02^5 is only 1.104. So a 10% increase... And in any case, it's up to the landlord to follow the rules of being a landlord. If he doesn't like those rules, he should get out of the business.

C
Member
Jun 15, 2017
263 posts
118 upvotes
I guess location is kennedy/401 tridel metro gate, new condos current market rate is 1600 for small units

5 years back phase 1 condos are bigger size.
Member
Jun 15, 2017
263 posts
118 upvotes
These condos have very less maintenance fee and low property tax 5 years back.
Now these must be increased a lot.
Looks like landlord was good not to increase must be thinking it was enough in intial days and must be delaying to increase rent, but now time has come and as current rent is 60% less..

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