The annual rent increase guideline for income properties in Ontario is set at 2.1 percent for 2010.
I did a quick check of the Community Profiles on the Stats Can website to see how many dwellings are owned versus rented in the South Georgian Bay area. Based on these 2006 figures, about 20% of all properties in our area are rented. In Collingwood, the number rises to 39%. That’s a lot of Landlords and a lot of Tenants who will be looking carefully at the new guideline. I’ve also noticed a distinct increase in the number of potential buyers looking for income properties in our area.
Every year, the Ontario government sets the amount which is the maximum percentage a landlord can increase the rent for existing tenants. The new rent increases are for the period of January 1, 2010 to December 31, 2010 and applies to most residential units. The rent can be increased if at least 12 months have passed since the tenant moved in or since the last increase was applied.
In determining the rent increase guideline each year, the government bases it on the Ontario Consumer Price Index (CPI) which is used a measure of inflation and is designed to take into account increases in a landlords building maintenance and operating costs.
There are circumstances where Landlords may apply to the Landlord and Tenant Board for an increase above the guideline, if their costs for municipal taxes or utilities have increased by more than the guideline PLUS 50 per cent. Details can be found on the governments website.
If you are a landlord in Ontario who is planning to increase according to the guidelines, it is important for you to know that tenants must be given proper written notice of the planned increase at least 90 days before the rental increase is to take effect.