Parkdale Community Legal Services

1. Parkdale Community Legal Services Tenants Rights Workshop RENT INCREASES

2. Legal Disclaimer: • This presentation is for informational purposes only. • It is not to be taken as legal advice. • If you need legal advice, feel free to either visit Parkdale Community Legal Services at 1266 Queen St. West or contact us at 416-531-2411

3. Overview: • Your landlord is legally permitted to raise your rent. • To do so, must follow the rules set out in the Residential Tenancies Act (“RTA”) if the Act applies to your tenancy. • There are 3 types of rent increases allowed under the RTA.

4. Does the RTA apply to me? • The RTAapplies to most rental housing in Ontario, such as rooms, apartments, houses, mobile home parks, and retirement homes. • The RTA maynot apply to rental housing that is supposed to be used for business, if the kitchen or bathroom is shared with the owner of the property or a family member of the owner or in some types of temporary or seasonal housing.

5. Rent for New Tenants: • Typically, there is NO LIMIT on how much rent a landlord can charge when a new tenant moves in. • Therefore, your starting rent will be whatever you and your landlord agree to in your tenancy agreement or lease. • After you and your landlord agree on a starting amount for rent, your landlord must follow the rules in the RTA to raise your rent.

6. Rent Increases under RTA Rules: General: • 3 Types of Rent Increases • Guideline Increases • Above Guideline Increases • Increases Agreed to by You and your Landlord • Notice • Periods • Contents

7. Types of Rent Increases: Guideline Increases Guideline Amount • Percentage that Provincial government set • For 2013 = 2.5 // For 2012 = 3.1% 12 Month Rule • Landlord must wait 12 months from start of lease to raise • Rent can only be increased once every 12 months Notice • At least 90 days • Must be in writing • Delivery & Contents ……

8. Notice: Delivery Methods: • Landlord hands it to you directly; • Leaves it in your mailbox; • Leaves it where you normally get mail; • Places it under the door of your unit • Sends it by fax to business or home • Sends it by courier or mail ***Cannot simply be posted on your door***

9. Notice: Contents • Name(s) of Tenant(s) • Complete address including unit number • Name of the Landlord • Date that the rent increase is to take effect • The amount the rent will be increased by • Explanation for the increase

10. Types of Rent Increases: Increases Above Guideline • Can be done, but must be approved by the Landlord & Tenant Board (LTB) • Legitimate reason for an increase above the guideline amount must be provided • 12 month rule and 90 days written notice still apply

11. Reasons for Increases Above Guideline • Unusually high increases in property taxes or utility costs; • Cost for security services; or • Capital Expenses*

12. Capital Expenses • Major repairs, renovations, replacements or additions which: • Will last for 5 years (at least) and • Not part of routine ongoing maintenance • Application: • Must apply to the LTB at least 90 days before they want the increase to start. • Hearing: • If application is made, LTB will schedule hearing • Landlord must provide you with notice of hearing at least 14 days before hearing

13. Capital Expenses Increase: Hearing Challenging the Application: • Tenant’s who would be affected by increase have the right to challenge the application • Ex. Work not needed // Costs less than stated LTB Decision: • After the hearing, Board will decide how much increase will be allowed. • Capital Expenses or Security – up to 3% above guideline amount, up to 3 years in a row. • Taxes and Utilities – No limit

14. Types of Rent Increases: Agreements to Raise Rent • Types of Agreements where you and your landlord can legally agree to raise rent above guideline amount • Agreement for improvements or new services • Agreements to get new items or services listed in the RTA Note: If your landlord asks you to agree to an increase that is more than the guideline amount, you can always refuse!

15. Agreements to Raise Rent • Improvements or New Services Examples: • New security system • Washer and Dryer • Stove or other appliances, etc. If you agree to a rent increase based on improvements or new services, your landlord does not have to give you written notice. But….

16. Improvement or New Services: continued…. …There are requirements: • Must be in writing on correct LTB form • Can be cancelled if notice in writing given to landlord within 5 days of signing agreement • Cannot increase your rent sooner than the sixth day after you signed the agreement • Cannot raise your rent more than 3% above the annual guideline amount for that year • Cannot increase your rent before 12 month has passed since last rent increase or first moved in

17. Agreements to Raise Rent • Items Listed in the RTA • You can also agree to a rent increase above the guideline amount for certain new services or things, including: • Parking Space • Cable or Satellite television • Air Conditioner • Extra electricity used by A/C, washer, dryer, etc • Lockers • Storage Space • Extra Floor Space Note: These are only some of the items listed in the RTA.

18. Items Listed in the RTA: continued….. Points to Keep in Mind: • Landlord not required to give written notice to you, if you agree to the rent increase. • Does not have to be in writing – (*better to get in writing) • No right to change mind after agreement made. • Not limited to 3% above guideline amount – only needs to be “reasonable” amount or landlord’s actual cost • If you and landlord agree to stop providing the service or item, your rent must go back down • 12 month rule does not apply

19. If You Have Paid Too Much • If your landlord has charged you an illegal amount of rent (i.e. Increased rent illegally) you can: • Apply to the LTB to get your money back • Contact the provincial government’s Investigation and Enforcement Unit to look into the issue.

20. If you have paid too much: Applying to the LTB • Forms and general information • www.LTB.gov.on.ca • Remedies: • Board can order your landlord to pay back any amounts that were not permitted by the RTA • Board can also order that your rent be corrected to the proper legal amount under the RTA • Time Limit: • 1 year • Illegal rent charged for more than 1 year without challenge becomes legal rent!**

21. If you have paid too much: Contacting the IEU • Investigations and Enforcement Unit (IEU) • Job function is to encourage landlords and tenants to obey the rules under the RTA • Also able to lay charges against landlords who will not follow the rules. • Fines payable to government • Corporate Landlord max fine $50,000 • Personal Landlord max fine $10,000 • Contact information: • www.mah.gov.on.ca/ieu • 1-888-772-9277 or 416-585-7214