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Rent increase on a rental condo

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Sr. Member
Sep 24, 2010
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Rent increase on a rental condo

After the one year lease is over, the tenant stays with a month-to-month arrangement. In this situation can the landlord increase the rent only once a year (based on inflation) on the anniversary or can they increase during the year based on their increase in property taxes or building maintenance fees?
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Deal Expert
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Nov 2, 2003
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can increase at end of 12mo lease
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Oct 14, 2004
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Also, if condo built after 1991, then you can increase it as much as you like.
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Nov 23, 2005
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James_TheVirus wrote: Also, if condo built after 1991, then you can increase it as much as you like.
care to show some literature regarding this 'fact'? My understanding was that you could only increase it once a year by x amount.
Member
Mar 28, 2009
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boyoflondon wrote: care to show some literature regarding this 'fact'? My understanding was that you could only increase it once a year by x amount.
Residential Tenancies Act:
6. (2) Sections 104, 111, 112, 120, 121, 122, 126 to 133, 165 and 167 do not apply with respect to a rental unit if, [emphasis added]
[INDENT](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).[/INDENT]

120. (1) No landlord may increase the rent charged to a tenant, or to an assignee under section 95, during the term of their tenancy by more than the guideline, except in accordance with section 126 or 127 or an agreement under section 121 or 123. 2006, c. 17, s. 120 (1)
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Apr 30, 2009
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James_TheVirus wrote: Also, if condo built after 1991, then you can increase it as much as you like.
That's right.

It's an exemption put in during the Bob Rae era when no one was building rentals and they needed to spur investment.

It's still there, in large part to protect the Toronto condo market. NDP wants to get rid of it if they gain power in Ontario.
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Feb 15, 2008
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Ask yourself (or a professional) if there's really market-based merit to increasing the rent on an existing tenant. There's an awful lot of new condo supply coming on stream, and a very large number of those brand-new units are being bought to be part of the rental pool.
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Sep 1, 2012
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Can increase 2% a year. Hardly landlord will increase rent
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Nov 2, 2003
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this is news to me

so this entire time i've been reading rental laws, they were for crappy rental apartment buildings and not my condo unit I rented out?
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Nov 24, 2004
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The rental increase guideline does not apply to buildings constructed after 1991, as others have mentioned, but IIRC the landlord is still only allowed to increase rent once per year even in these newer buildings.
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all my hours of research into RTA is useless??!! all because i have a condo and didnt read 6(2)c to mean the same thing as whats being discussed?
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so this is easy eay to kick ppl out? just increase rent to $100000 per mo?
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actng wrote: so this is easy eay to kick ppl out? just increase rent to $100000 per mo?
Of course not.... The tenant can sue a landlord if he acted in bad faith. If landlord raise rent to something ridiculous, then tenant moves out, then another tenant moves in for market rent rate, the first tenant can take the landlord to the LTB Board and be awarded damages. Otherwise everyone would do it to get rid of "problem tenants".
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Dec 12, 2006
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Just as easy for a landlord to evict a tenant to move in a supposed family member......which ends up not moving and then getting a new tenant at 25% increased rental rate.
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Beeg wrote: That's right.

It's an exemption put in during the Bob Rae era when no one was building rentals and they needed to spur investment.

It's still there, in large part to protect the Toronto condo market. NDP wants to get rid of it if they gain power in Ontario.
I don't believe that.

And DLLexports copy and past doesn't say anything about that.
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Guideline increase

120. (1) No landlord may increase the rent charged to a tenant, or to an assignee under section 95, during the term of their tenancy by more than the guideline, except in accordance with section 126 or 127 or an agreement under section 121 or 123. 2006, c. 17, s. 120 (1).

Guideline

(2) The Minister shall determine the guideline in effect for each calendar year as follows:

1. Subject to the limitation set out in paragraph 2, the guideline for a calendar year is the percentage change from year to year in the Consumer Price Index for Ontario for prices of goods and services as reported monthly by Statistics Canada, averaged over the 12-month period that ends at the end of May of the previous calendar year, rounded to the first decimal point.

2. The guideline for a calendar year shall be not more than 2.5 per cent. 2012, c. 6, s. 1.

Publication of guideline

(3) The Minister shall have the guideline for each calendar year published in The Ontario Gazette not later than August 31 of the preceding year. 2012, c. 6, s. 1.

Transition

(4) The guideline for the calendar year in which the commencement date occurs is the guideline established for that year under this section as it read immediately before the commencement date. 2012, c. 6, s. 1.

Same

(5) If the commencement date occurs on or after September 1 in a calendar year, the guideline for the following calendar year is the guideline established for that year under this section as it read immediately before the commencement date. 2012, c. 6, s. 1.

Review by Minister

(6) The Minister shall initiate a review of the operation of this section within four years after the commencement date and thereafter within four years after the end of the previous review. 2012, c. 6, s. 1.

Definition

(7) In subsections (4), (5) and (6),

“commencement date” means the day section 1 of the Residential Tenancies Amendment Act (Rent Increase Guideline), 2012 comes into force. 2012, c. 6, s. 1.
Agreement

121. (1) A landlord and a tenant may agree to increase the rent charged to the tenant for a rental unit above the guideline if,

(a) the landlord has carried out or undertakes to carry out a specified capital expenditure in exchange for the rent increase; or

(b) the landlord has provided or undertakes to provide a new or additional service in exchange for the rent increase. 2006, c. 17, s. 121 (1).
Additional services, etc.

123. (1) A landlord may increase the rent charged to a tenant for a rental unit as prescribed at any time if the landlord and the tenant agree that the landlord will add any of the following with respect to the tenant’s occupancy of the rental unit:

1. A parking space.

2. A prescribed service, facility, privilege, accommodation or thing. 2006, c. 17, s. 123 (1).
Application for above guideline increase

126. (1) A landlord may apply to the Board for an order permitting the rent charged to be increased by more than the guideline for any or all of the rental units in a residential complex in any or all of the following cases:

1. An extraordinary increase in the cost for municipal taxes and charges or utilities or both for the residential complex or any building in which the rental units are located.

2. Eligible capital expenditures incurred respecting the residential complex or one or more of the rental units in it.

3. Operating costs related to security services provided in respect of the residential complex or any building in which the rental units are located by persons not employed by the landlord. 2006, c. 17, s. 126 (1).
Two ordered increases

127. Despite clause 126 (11) (b), if an order is made under subsection 126 (10) with respect to a rental unit and a landlord has not yet taken all the increases in rent for the rental unit permissible under a previous order pursuant to clause 126 (11) (b), the landlord may increase the rent for the rental unit in accordance with the prescribed rules. 2006, c. 17, s. 127.
It's pretty clear in the tenancy act that you cant increase rent however you want too.

As well, this follows contract law; wherein you can't change the price on a contract. The only time you can do that is if you are adding something more to the contract - e.g. you make a deal with me to buy a car at $10,000. I tell you, look, I can sell the car to you for $11,000 but I will include an AC. Then you can change the contract if both parties agree.

The counter argument is that if the lease agreement is up, you no longer have a contract. BUT you do as the contract you signed a) stipulates month to month there-after.
12-Month Rule

12-month rule

119. (1) A landlord who is lawfully entitled to increase the rent charged to a tenant for a rental unit may do so only if at least 12 months have elapsed,

(a) since the day of the last rent increase for that tenant in that rental unit, if there has been a previous increase; or

(b) since the day the rental unit was first rented to that tenant, if clause (a) does not apply. 2006, c. 17, s. 119 (1).

Exception

(2) An increase in rent under section 123 shall be deemed not to be an increase in rent for the purposes of this section. 2006, c. 17, s. 119 (2).
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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).
This actually makes no sense because 123 states
123. (1) A landlord may increase the rent charged to a tenant for a rental unit as prescribed at any time if the landlord and the tenant agree that the landlord will add any of the following with respect to the tenant’s occupancy of the rental unit:

1. A parking space.

2. A prescribed service, facility, privilege, accommodation or thing. 2006, c. 17, s. 123 (1).
This is the same as contract law. Where you can't suddenly change the price on a contract UNLESS you both agree that something extra will be added. And even then, you the tenant don't have to accept.

So even though exception apples to a bunch of sections, 123 over rides it. So you can't just increase whenever you want without adding something.

ACtually this is even better because if you read this properly that means that if the unit was constructed AFTER 1991, they can't increase the rent at all, unless they add something.

lol. Id like to see this being fought in court.
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section 6(2)c wouldn't apply if the land the new condo is built on, used to be houses... so... argh i'm so confused. any links/references?
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actng wrote: section 6(2)c wouldn't apply if the land the new condo is built on, used to be houses... so... argh i'm so confused. any links/references?
no, no where does it say that. if its a new building then the rule applies.

but section 123 STILL applies to NEW UNITS.
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Sep 23, 2007
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Most people settle rent prices without ever invoking the regulations. Both parties are not forced to renew the lease if they don't come to mutual terms. In a market with short supply, if the landlord wants to increase the rent, he can do that easily by asking you to pay more, or finding a new tenant for the next 12 months. In the current market, I don't think there's much upward pressure on rent. Regulations on rent is pretty much useless.

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