Real Estate

Tenant does not want to agree to rent increase

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  • Aug 13th, 2021 2:46 pm
[OP]
Newbie
Feb 2, 2017
40 posts
27 upvotes

Tenant does not want to agree to rent increase

This is a hypothetical situation:

I have a rental property in Ontario, that is not subject to rent control (built in 2020). I want to increase rent from 2600 to 2700/month in January 2022. Market rent is $2800-2900 right now, so I think it's fair.

If the tenant does not agree to the rent increase, do I have to file notice for eviction the day after rent is due?
29 replies
Deal Addict
User avatar
Jul 4, 2009
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Windsor, ON area
Rent increases are not based on market value.

IIRC, it's the LTB that sets the annual legal increase amount.

This is the rental increase by year and percentage:

2022 1.2
2021 0
2020 2.2
2019 1.8
2018 1.8
2017 1.5
2016 2.0
2015 1.6
2014 0.8
2013 2.5
2012 3.1
2011 0.7
2010 2.1

Also, you have to give 90 days notice that you are increasing the rent. You also cannot raise the rent less than 12 months from the last increase.
Last edited by kittypink on Aug 12th, 2021 12:45 pm, edited 1 time in total.
Deal Fanatic
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Jan 16, 2011
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kittypink wrote: Rent increases is not based on market value.

IIRC, it's the LTB that sets the annual legal increase amount.

This is the rental increase by year and percentage:

2022 1.2
2021 0
2020 2.2
2019 1.8
2018 1.8
2017 1.5
2016 2.0
2015 1.6
2014 0.8
2013 2.5
2012 3.1
2011 0.7
2010 2.1

Also, you have to give 90 days notice that you are increasing the rent. You also cannot raise the rent less than 12 months from the last increase.
This is the answer.

Good luck evicting a tenant it Ontario because you want to increase the rent.
Deal Fanatic
Mar 21, 2010
6575 posts
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Toronto
kr0zet wrote: This is the answer.

Good luck evicting a tenant it Ontario because you want to increase the rent.
I don't think that applies to new buildings, though?

Exceptions
.
.
New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018 are exempt from rent control.


https://www.ontario.ca/page/residential-rent-increases

Though I'm not sure what happens if the tenant does not accept it. I would assume it's the same as if they don't pay their full rent?
Deal Addict
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Jan 2, 2012
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senator10 wrote: This is a hypothetical situation:

I have a rental property in Ontario, that is not subject to rent control (built in 2020). I want to increase rent from 2600 to 2700/month in January 2022. Market rent is $2800-2900 right now, so I think it's fair.

If the tenant does not agree to the rent increase, do I have to file notice for eviction the day after rent is due?
I believe you would first serve an N2 with minimum 90 days notice, for a rent increase on unit not under rent control so above the guideline.

Then once in effect if he pays the old rent, you file an N4 for non-payment of rent (difference from old to new rent). He then has 2 weeks to pay up.

After 2 weeks if still hasn't paid, you then file L2 with the LTB and pay fees to get in line for an eviction hearing. Of course if he pays up the back amount owed at any time, he most likely won't get evicted.
kittypink wrote: Rent increases are not based on market value.

IIRC, it's the LTB that sets the annual legal increase amount.
His unit is exempt from rent control since it was built/first occupied in 2020.
From LTB/RTA:
New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018 are exempt from rent control.
Sr. Member
Oct 14, 2010
590 posts
616 upvotes
Toronto
If the tenant doesn't agree to the increase, seeing this building isn't rent controlled, serve them a notice to evict. This will either make them see reason or leave.
Deal Guru
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Mar 23, 2008
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Edmonton
Some of you seem to be missing the fact that the property is exempt from rent control.

OP, make sure to file the correct form with the tenant. I believe you need form N2, not the usual N1. You still need to give proper notice, and you’re still limited in how often you can increase the rent. But you can increase it by whatever amount you want.

If the tenant refuses to pay the extra, then yes, you can file for an eviction based on that. Be prepared for a long delay, though.

C
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Jul 4, 2009
1595 posts
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Windsor, ON area
kittypink wrote: Rent increases are not based on market value.

IIRC, it's the LTB that sets the annual legal increase amount.

This is the rental increase by year and percentage:

2022 1.2
2021 0
2020 2.2
2019 1.8
2018 1.8
2017 1.5
2016 2.0
2015 1.6
2014 0.8
2013 2.5
2012 3.1
2011 0.7
2010 2.1

Also, you have to give 90 days notice that you are increasing the rent. You also cannot raise the rent less than 12 months from the last increase.
Sorry, I gave outdated information.
The above only applies to properties rented before November 2018 and under rent control.

Properties not under rent control has their own rules.
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Apr 12, 2013
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Manatus wrote: I don't think that applies to new buildings, though?

Exceptions
.
.
New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018 are exempt from rent control.


https://www.ontario.ca/page/residential-rent-increases

Though I'm not sure what happens if the tenant does not accept it. I would assume it's the same as if they don't pay their full rent?
CNeufeld wrote: Some of you seem to be missing the fact that the property is exempt from rent control.

OP, make sure to file the correct form with the tenant. I believe you need form N2, not the usual N1. You still need to give proper notice, and you’re still limited in how often you can increase the rent. But you can increase it by whatever amount you want.

If the tenant refuses to pay the extra, then yes, you can file for an eviction based on that. Be prepared for a long delay, though.

C
Ding Ding, Ding!

This my friends is why you do not invest in pre Nov 2018 buildings.
Koodo, Public Mobile, Lucky Mobile Customer
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Mar 21, 2010
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kangarooz wrote: Ding Ding, Ding!

This my friends is why you do not invest in pre Nov 2018 buildings.
This is probably a topic for another time, but I personally wouldn't feel at all confident that post-Nov 2018 buildings won't be brought into the rent control environment at a later date. I think whatever building you invest in, you can't ignore it.
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Apr 12, 2013
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Manatus wrote: This is probably a topic for another time, but I personally wouldn't feel at all confident that post-Nov 2018 buildings won't be brought into the rent control environment at a later date. I think whatever building you invest in, you can't ignore it.
Heard this before too, all the rules/laws in the past have been grandfathered, including the rent control rules pre-2018. There have been countless builders/REITS/Corporations who starting building purposed built rentals after this law changed. The province would be legally challenged by all the builders/corps who built solely based off this change.
Koodo, Public Mobile, Lucky Mobile Customer
[OP]
Newbie
Feb 2, 2017
40 posts
27 upvotes
kangarooz wrote: Heard this before too, all the rules/laws in the past have been grandfathered, including the rent control rules pre-2018. There have been countless builders/REITS/Corporations who starting building purposed built rentals after this law changed. The province would be legally challenged by all the builders/corps who built solely based off this change.
I think it will happen eventually, and there's really no basis for a legal challenge. But it will be something like in 2030, rent control only applies to buildings completed pre-2028. By then builder's will have made their profits and can move on, and with landlords, it's like any other business...investor beware of the PESTEL factors before investing.
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Jan 2, 2012
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kangarooz wrote: Heard this before too, all the rules/laws in the past have been grandfathered, including the rent control rules pre-2018. There have been countless builders/REITS/Corporations who starting building purposed built rentals after this law changed. The province would be legally challenged by all the builders/corps who built solely based off this change.
Have they? From what I recall, pre-2018 there was only rent control on units built before 1991. Then in 2017, Wynne's Liberals pushed though their rent control policy which forced rent control to everyone. There was no grandfathering for any landlord with existing units. So someone that had just built a new unit in 2016 under no-rent-control rules, now had rent control policy forced on them. Please correct if I'm wrong here.

So similarly I see no reason why a future Premier can't simply force rent control back onto everyone again, and simply remove the "Nov 2018" exemption. Not sure if there is any basis for lawsuits by investors based on government policy changes in this area.
Deal Guru
Feb 22, 2011
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Toronto
senator10 wrote: This is a hypothetical situation:

I have a rental property in Ontario, that is not subject to rent control (built in 2020). I want to increase rent from 2600 to 2700/month in January 2022. Market rent is $2800-2900 right now, so I think it's fair.

If the tenant does not agree to the rent increase, do I have to file notice for eviction the day after rent is due?
There is nothing for them to agree to. You tell them the rent and they have to pay it. If they don't pay their rent you evict them.
Deal Expert
Feb 29, 2008
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Tarrana & The Ri…
kangarooz wrote: Ding Ding, Ding!

This my friends is why you do not invest in pre Nov 2018 buildings.
Meh, Once Libs take control they will include those buildings as well. So never expect that rent control will be exempt forever. Not in today's day and age.
Deal Expert
Feb 29, 2008
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sircheersa wrote: There is nothing for them to agree to. You tell them the rent and they have to pay it. If they don't pay their rent you evict them.
Yes, but I wonder how many will fight it as we're now living in a time where the government has told renters they don't have to pay rent.
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JayLove06 wrote: Yes, but I wonder how many will fight it as we're now living in a time where the government has told renters they don't have to pay rent.
Where did the government say that renters don't have to pay rent? Can you provide me a source?
Deal Guru
Feb 22, 2011
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JayLove06 wrote: Yes, but I wonder how many will fight it as we're now living in a time where the government has told renters they don't have to pay rent.
Eviction ban was lifted June 2, people getting evicted in a few mins with online hearings.
Deal Expert
Feb 29, 2008
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sircheersa wrote: Eviction ban was lifted June 2, people getting evicted in a few mins with online hearings.
The damage is already done, though.
Deal Guru
Feb 22, 2011
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JayLove06 wrote: The damage is already done, though.
Yea, some people will get burned, sometimes that's way she goes boys.

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