Lawmakers in Ontario have vowed to set rent increase caps on condo rentals.
The current rent increase guidelines for other rentals in Ontario is capped at not more than 2.5 per cent, regardless of economic indicators. Newer condo rentals have been exempt from that standard.
MPP DiNovo and Toronto’s Councillor Vaughan both agree that needs to change, according to a recent news report.
DiNovo calls it a loophole that the provincial government overlooked. Vaughan describes the issue as complex, and says any legislation that is introduced must take into account both tenants and owners.
Several factors have lead to increases in condo rents, particularly downtown Toronto. For instance, condo owners have more freedom to pass along increased maintenance costs.
The report also points out that many tenants entered into leases with incentives for the first year, and are surprised when it comes time to renew and the rent is adjusted to the market rate.
The rent increase guideline for non-condo rentals was initially set based on the consumer price index. However, the provincial legislature recently amended the guideline to include the 2.5 per cent maximum cap.
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.
