Toronto Seeks Limits on Above-Guideline Rent Increases

by | Mar 3, 2014 | Rental Property Management Tips

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).

Click Here to Receive Landlord Credit Reports.

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.

shiftsuite
Property management software for Canadian Condos.

Property Boss

Property management software for single family, multifamily, and student housing.

TVS

Property Boss provides property management software for single family, multifamily, and student housing.

USA

Canada