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Windsor Landlord Question: How Much Can I Raise The Rent?

April 13th, 2014 · No Comments · Property Management Windsor Landlords, Rental Property Windsor

A Reader Wants To Know How Much She Can Raise the Rent For a Tenant In Her New Rental Property

The beginning of the year saw many small residential landlords discussing the issue of landlord licensing of Windsor landlords.

There was another important issue for landlords.  The 2014 Rent Increase Guideline was announced.

The Guideline is the legally allowable amount residential landlords can raise the rent for their current tenants.

Here is how the Ministry of Municipal Affairs and Housing explains it:

“The annual Rent Increase Guideline is a calculation based on the Ontario Consumer Price Index by Statistics Canada and applies to most private residential rental accommodation covered by the Residential Tenancies Act, 2006

The 2014 Rent Increase Guideline is 0.8%

Yes, you read that correctly.

Residential landlords can only raise the rent by less than 1% despite ever increasing costs to run a rental.

Many landlords know that such a small increase won’t allow landlords to maintain safe and attractive properties.

This was explained in report on the Sun News Network about the low rent increase for 2014.

An Ottawa landlord explained how this low guideline harmed good landlords who rent out high quality properties.

The landlord explained many landlords in Ontario are simply selling and investing elsewhere.Popular investment areas include the western provinces.

B.C. landlords can raise the rent 2.2% in 2014. Alberta landlords have it even better. They have no guideline they need to follow.

Do You Own A New Rental Property?

Many small business landlords aren’t aware of many aspects of the Residential Tenancies Act.

For example, do you know you and your rental property maybe not be covered by the Rent Increase Guideline?

There is an important explanation of this at the Ontario Landlords Association website.

Your rental property may be exempt from the guideline. This means you can raise the rent as much as you want to.

For example, if your property was built after November 1991 you are not covered. Te read the full article clicker here: “How Much Can I Raise the Rent For New Buildings in Ontario?

How Much Can You Raise the Rent In 2014?

Of course being able to raise the rent sounds good for landlords and has the usual tenant activists up in arms.

However, experienced landlords know we are at the mercy of market forces.

If you raise the rent too high you will lose tenants and won’t be able to rent to new ones.

This is just part of the complex world of being a landlord in Windsor and everywhere else in Ontario.

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