If you`re a tenant in Ontario, you may have heard about the recent changes to rental agreement increases. In the past, landlords could increase rent by any amount, as long as they gave proper notice. However, as of April 30, 2018, the rules have changed.
Under the new regulations, landlords can only increase rent by a maximum of 1.8% per year. This amount is based on the Consumer Price Index (CPI), which calculates the change in the cost of living. Landlords must also provide their tenants with written notice of the increase at least 90 days before the new rent amount takes effect.
This change has been put in place to help protect tenants from being priced out of their homes. With the cost of living increasing every year, it can be difficult for tenants to keep up with rising rental costs. By limiting the amount that landlords can increase rent, tenants are given some measure of stability and protection. Furthermore, it allows tenants to plan their finances more effectively without worrying about unexpected rent increases.
Of course, there are exceptions to the rule. Rent increases can exceed the 1.8% cap if a landlord has made significant renovations or repairs to the property. Additionally, if a landlord and tenant agree to a higher rent increase, they may submit a written agreement to the Landlord and Tenant Board for approval.
Tenants who believe their landlord has illegally increased their rent can file a dispute with the Landlord and Tenant Board. The Board will investigate the matter and make a decision on whether the increase is legal or not.
In conclusion, if you`re a tenant in Ontario, it`s important to be aware of the new regulations regarding rental agreement increases. By limiting rent increases to 1.8%, the government hopes to provide stability and protection for tenants. If you believe your landlord has illegally raised your rent, remember that you have options available to you. Stay informed and protect your rights as a tenant.