Toronto Seeks Limits on Above-Guideline Rent Increases

by Chris on March 3, 2014

Toronto City Council will request that the Province of Ontario amend sections of the Residential Tenancies Act to limit above-guideline rent increases.

In a motion presented to the Council, proponents argued that above-guideline increases used for basic upkeep and repairs have pushed rents higher, making housing unaffordable for many renters. In addition, they say that the low vacancy rate has made it nearly impossible for tenants to find lower-cost alternatives elsewhere.

tenant screeningAccording to lawmakers, average rents have risen $80 per month for a one bedroom over the last four years.

Because an increase can be awarded to cover capital repairs like elevators, proponents of the limitations argue that, under current provincial law, tenants are being unfairly burdened with what they say should be a landlord’s cost of doing business. Instead, they propose that these repairs and improvements should be paid for from rent landlords are already receiving.

As a result, the motion, which was passed by a two-thirds majority, requests an amendment to provincial law requiring landlords to save 10 per cent of rental income in a maintenance account to be used for capital expenditures in lieu of requesting an above-guideline increase.

In addition to restricting rent increases for repair and maintenance, the motion also requests an amendment to eliminate any above-guideline rent increases necessary to offset increases in municipal taxes and utilities.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

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Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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Lewis March 4, 2014 at 12:20 pm

looks like city council are really pushing to increase rents again. as long as they keep trying to rig the free market to make it look like tenants will get something for nothing rents for vacant apartments will soar. Cut through all of this bs and the truth is that city council are hoping to win votes by looking like compassionate souls who fight for the underdog. The net effect is passing their costs for accommodating the hard to house to landlords. it will win them votes for the next election (maybe) but once the market readjusts itself tenants will be the big losers again. Landlords will, over time, increase rental rates as new vacancies come up or sell their loss makers to buyers who will turn them into single family homes. Thanks for putting things right communist council of toronto.

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