Rental increase + lease - condo in Markham (GTA)

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Aug 9th, 2017 1:29 pm

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Aug 5th, 2017 5:51 pm

2legit2quit0071 [OP]: Newbie; Aug 4, 2017; 4 posts

Aug 5th, 2017 5:51 pm

Rental increase + lease - condo in Markham (GTA)

Hi fellow redflagers
,
I live in a condo I've been renting, since April 2016. This is in Markham, a newish condo built around 2014. Initially, I took the lease over from a friend who moved out. I'll try to keep this brief:
- April 2016 - September 2016 - 6 month lease agreement was signed @ 1200.00/month

After the above period, the landlord agree to month-to-month with three post-dated cheques - but increased the rent. So then it was:
- October 2016 - present - month-to-month with three post-dated cheques, @ 1325.00/month.

The landlord has informed me that they want me now to sign a 1 year lease from October 2017 - at another rent increase (not sure how much).

By law, is there a limit on how much they can increase my rent - and by law, do I have to sign a one year lease agreement?

Please let me know --- thank you.

P.S. I found a guideline newly passed which says the increase can be no more than 1.5%. So I guess I'm more wondering about the forced one-year lease agreement.
I should mention - I've been a very good tenant, never any late payments, and the place still looks new (1 bedroom and I live alone)

11 replies

Aug 6th, 2017 11:51 am

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

Aug 6th, 2017 11:51 am

They can only increase by the rate of inflation, there is a guide online that says how much they can increase each year.
They can only increase the rent once a year so 12 months after the last increase. So if you started to pay $1,325 at October 2016, they aren't allowed to ask for more money before October of 2017 and they need to give you 90 month notice.
As you mentioned, it seems like the current rate hike is at 1.5% so he shouldn't be charging you more than $1,345 ($20 increase) starting at October 2017.

I could be wrong but I don't think they are allowed to force you into another 1 year lease, pretty sure you can stay month to month.

I'm guessing they figured that they are renting it way below market price which is why they are trying to increase. Not sure where in Markham you are but if the place is new and he were to list it for rent again, he could probably get more than $1,600 easily. I guess he shouldn't have allowed you in the first place and just tried to find someone new at market price.

EDIT: Fixed my mistake.

Last edited by flafson on Aug 6th, 2017 11:51 am, edited 1 time in total.

Aug 6th, 2017 1:58 pm

boyohboy: Deal Fanatic; Dec 6, 2006; 5607 posts; 1805 upvotes; Toronto

Aug 6th, 2017 1:58 pm

flafson wrote: ↑ They can only increase by the rate of inflation, there is a guide online that says how much they can increase each year. Pretty sure that when you agreed to go from $1,200 to $1,325 that was already illegal but probably too late now.
They can only increase the rent once a year so 12 months after the last increase. So if you started to pay $1,325 at October 2016, they aren't allowed to ask for more money before October of 2017 and they need to give you 90 month notice.
As you mentioned, it seems like the current rate hike is at 1.5% so he shouldn't be charging you more than $1,345 ($20 increase) starting at October

Not familiar with all the law. But didnt the new rent control only started this April 2017. Op said 2016 and it's new building so not sure why it would be illegal.

Aug 6th, 2017 3:36 pm

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

Aug 6th, 2017 3:36 pm

boyohboy wrote: ↑ Not familiar with all the law. But didnt the new rent control only started this April 2017. Op said 2016 and it's new building so not sure why it would be illegal.

You're right, my bad, forgot about the new twist that they only added recently.

Aug 8th, 2017 12:19 pm

cellsell: Sr. Member; Aug 4, 2004; 642 posts; 501 upvotes

Aug 8th, 2017 12:19 pm

they cannot force you to sign a 1 year contract. you are on month to month base and it is legal for you to stay. As mentioned by others, they can only increase the rent every 12 month so maybe that's why they want that contract start from Oct.
Did they deliver a proper notice (N1) for the rent increase? they need to mail or deliver to you with a 90 days notice so I would say they are late for Oct increase.

Put it that way... how do you like the place? If you are happy with the place, I would suggest to negotiate with them for the 1 year extension and no increase of rent. You mostly need to do all the credit check and sign a new term lease if you are moving so it may make no difference.

Aug 8th, 2017 2:47 pm

alanbrenton: Deal Expert; Apr 21, 2004; 56484 posts; 21536 upvotes

Aug 8th, 2017 2:47 pm

How does one prevent the landlord from feigning that his relatives are moving in to kick tenants out or are renters out of luck with evictions from landlords who just want to jack up the rental rates?

http://yourlegalrights.on.ca/common-que ... ct-someone

Even tenants who have done nothing wrong can sometimes be evicted simply because of the landlord's plans for the rental unit. For example, the landlord may want to:

live in the unit
use it for a different purpose
do major repairs or renovations

Aug 8th, 2017 2:49 pm

sircheersa: Deal Guru; Feb 22, 2011; 13087 posts; 16690 upvotes; Toronto

Aug 8th, 2017 2:49 pm

alanbrenton wrote: ↑ How does one prevent the landlord from feigning that his relatives are moving in to kick tenants out or are renters out of luck with evictions from landlords who just want to jack up the rental rates?

http://yourlegalrights.on.ca/common-que ... ct-someone

Even tenants who have done nothing wrong can sometimes be evicted simply because of the landlord's plans for the rental unit. For example, the landlord may want to:

live in the unit

use it for a different purpose

do major repairs or renovations

It's kind of amusing they would list "disturbing the landlord" as a valid reason for eviction;

The RTA lists many other reasons for eviction, including:
•disturbing other tenants or the landlord, for example, with very loud parties late at night

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Aug 8th, 2017 3:52 pm

_dc_: Sr. Member; Dec 4, 2004; 730 posts; 729 upvotes; GTA

Aug 8th, 2017 3:52 pm

1. By law, the landlord can only increase rent after a minimum of 12 months has passed since you began your tenancy or since the last rent increase.
2. The maximum amount of rent increase is set by the RTA and for 2017, that is 1.5% (1.8% for 2018).
3. They must give you 90 days notice (minimum) before increasing rent.
4. The notice of rent increase must be on form N1, and must be delivered by mail, courier or in person, emailing is not valid.
5. The landlord cannot force you to sign a 1-year lease if you are month-to-month and cannot evict you if you refuse to sign.

Aug 8th, 2017 4:18 pm

2legit2quit0071 [OP]: Newbie; Aug 4, 2017; 4 posts

Aug 8th, 2017 4:18 pm

Thanks for the advice everyone. I've told this to my landlord and will follow up to let you know the outcome.

Aug 8th, 2017 4:37 pm

Sam9876: Member; Mar 3, 2016; 389 posts; 250 upvotes

Aug 8th, 2017 4:37 pm

2legit2quit0071 wrote: ↑ Thanks for the advice everyone. I've told this to my landlord and will follow up to let you know the outcome.

Also, if after this, they decide to evict you, as per the new regulations, they'll have to give you 1 month rent free. And the reason they'll have to give for the eviction better not be that you didn't accept the rent increase above what is set by law.

Aug 8th, 2017 8:04 pm

mrtrump: Sr. Member; Oct 19, 2016; 650 posts; 208 upvotes; Toronto

Aug 8th, 2017 8:04 pm

OR the landlord can just sell the place and the new owner can move in and and one less unit available in the market...

I can see how the regulations can actually hurt the rental market.

Sam9876 wrote: ↑ Also, if after this, they decide to evict you, as per the new regulations, they'll have to give you 1 month rent free. And the reason they'll have to give for the eviction better not be that you didn't accept the rent increase above what is set by law.

Aug 9th, 2017 1:29 pm

JayLove06: Deal Expert; Feb 29, 2008; 19388 posts; 17855 upvotes; Tarrana & The Ri…

Aug 9th, 2017 1:29 pm

Landlord is out to lunch. Maybe he's looking for you to say eff it and leave so he can charge the rent he wants to the new tenant.

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