If you own an income property, you probably already know that the Rent Increase Guideline set for 2013 is at the new maximum of 2.5%.
What many people don’t seem to know is that there are exemptions to these guidelines. Owners can apply for increases above the guidelines for certain expenses however, there are other circumstances in which no guidelines apply.
In Section 6 (2) of the Residential Tenancies Act, it outlines the circumstances in which a landlord may increase rent to an amount that is not limited to the guideline. The guidelines setting the maximum amount by which rents can be increased do not apply in the following cases:
• it was not occupied for any purpose before June 17, 1998 – meaning it is either in a new building (often a condominium building) built since 1998, or an older building with a new unit or never occupied, residentially or otherwise, before June 17, 1998;
• it is a rental unit no part of which has been previously rented since July 29, 1975 – meaning only the owner has used or occupied the unit since 1975; or
• no part of the building, mobile home park or land lease community was occupied for residential purposes before November 1, 1991 – meaning the building was probably commercially used before 1991 and then was converted to residential use.
Rent Can Be Increased By Any Amount
In these situations, rent can be increased by any amount and Landlords should use the N2 rent increase form instead of the N1 form usually used to give notices of increases within the guidelines. Either way, don’t forget that Landlords must provide 90 days written notice to their Tenants when increasing the rent using either the N1 or N2 form. These are available online by clicking here.
It’s always a pleasure to meet new people and to assist them in meeting their real estate goals. If you would like to schedule a Buyer or Seller consultation with me, please feel free to contact me anytime at 705-446-1762 or send me an email.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg