Lease Terms

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May 17th, 2015 6:51 am

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May 16th, 2015 8:59 am

bestbuy00 [OP]: Newbie; Jan 18, 2008; 39 posts; 1 upvote

May 16th, 2015 8:59 am

Lease Terms

Renting our our apartment. Signing a lease with tenant for 18 months. Is there a clause that I can add into the lease that states I have the option to increase rent after 12 months passes with 90 day notice? How would I word that? Thanks.

6 replies

May 16th, 2015 9:23 am

cgtlky: Deal Fanatic; Jan 31, 2006; 8029 posts; 2357 upvotes; Toronto

May 16th, 2015 9:23 am

Why not just sign a one year deal then an option for 6 months extension with rent increase provision (which is allow under the law). That way you are better safe than sorry.

May 16th, 2015 12:23 pm

Buccio: Banned; Jan 16, 2015; 869 posts; 86 upvotes; Toronto, ON

May 16th, 2015 12:23 pm

You can only raise the rent about 1.6% per year regardless if he sign his first born to you after 12 months.

May 16th, 2015 3:05 pm

flafson: Deal Addict; Oct 29, 2010; 4395 posts; 743 upvotes

May 16th, 2015 3:05 pm

The only way to really raise it is to find someone else. 1.6% after 12 months is like nothing.

May 16th, 2015 5:47 pm

loriblum: Deal Addict; Dec 21, 2010; 1748 posts; 1058 upvotes; GTA

May 16th, 2015 5:47 pm

You are signing him at the rate of $xxx for the 18 months. After that you can increase the rent. Otherwise, make the tenancy agreement for a twelve month term.

Award Winning Realtor - I LOVE MY JOB!!
At the end of the day, you're the boss and need to make sure I'm worth your rate of pay!

May 16th, 2015 10:43 pm

Quentin5: Deal Expert; Feb 8, 2014; 26915 posts; 11356 upvotes; Socially Distanced

May 16th, 2015 10:43 pm

Assuming the OP is in Ontario:

1.6% is not set in stone, the government allows you to raise the rent at the previous year rate of inflation which they publish each year. Any increase above that is not legal unless your building is newer then a set date (i forget what year, you'll have to look that up)
Also you can't enforce a lease thats more then 1 year by law.

Make sure you have fully background checked your tenant, and look into other resources that can prepare you for being a landlord, its not fun and games, and make sure your using a bulletproof lease because in Ontario landlords have very few rights and tenants can legally abuse you in ways you can't imagine.

In fact in Rand McNally they wear hats on their feet and hamburgers eat people

May 17th, 2015 6:51 am

theguyz: Deal Addict; Dec 12, 2006; 4354 posts; 578 upvotes; Messed Up Area

May 17th, 2015 6:51 am

You can actually raise rent more than the 1.6% if you have done major repairs( roof, plumbing, etc.... NOT COSMETIC ) since tenant moved in. But as well if inflation rate lowers means its lower than 1.6% without repairs.

But as well landlord allowed to increase rent 12 months in even if not in contract, and lease turns to a month to month versus yearly tenant. Just make sure you have delivered rent increase via signatured mail 90 days prior to year.

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