Wednesday, 30 December 2015

Ontario's 2016 Rent Increase Guideline is 2.0%

Ontario has set the guideline on rent increases for 2016 at 2%. The guideline amount for 2015 was 1.6%.
The rent increase guideline of 2% for 2016 is the maximum a landlord can automatically raise a tenant's rent without the approval of the Landlord and Tenant Board. It is applicable to rent increases between January 1 and December 31, 2016.  
The guideline is based on the Ontario Consumer Price Index, a measure of inflation calculated monthly by Statistics Canada that reflects economic conditions over the past year.
Generally, a landlord can only increase the rent by a guideline amount set annually by the Ontario government.
However, under certain circumstances, a landlord can apply to the Landlord and Tenant Board for a rent increase that is above the guideline amount. The landlord can apply for the following reasons:
o   The landlord’s costs for municipal taxes and/or utilities (heat, water and electricity combined) have increased by an “extraordinary” amount.
o   The landlord did extraordinary or significant renovations, repairs, replacements or new additions to the building or to individual units. This is called “capital expenditures.”
o   The landlord’s costs for security services increased, or the landlord began providing security services for the first time.

Capreit obtained above-guideline increases for 6, 7 & 8 Park Vista in 2015. The amounts granted were lower than what Capreit was seeking thanks to efforts by the Park Vista Tenants' Association, which hired a paralegal to challenge the increases. 
Capreit has applied for an above-guideline increase for 97 rental units at 2 Park Vista. A hearing date has not yet been set. 
For more information about above-guideline rent increases from Community Legal Education Ontario, visit the link below: