OTTAWA LANDLORDS FACE THE LOWEST RENT INCREASE IN DECADES
According to a report at the Ontario Landlord Association, the maximum amount landlords can increase the rent in 2014 is 0.8%.
This is the Rent Increase Guideline for 2014.
In Ontario the government sets how much landlords can raise the rent for existing tenants every year.
The Minister of Municipal Affairs and Housing is Linda Jeffrey.
The Minister says:
“The Rent Increase Guideline is based on the Ontario Consumer Price Index. This year’s rate will be the second lowest in history. It will help to ensure Ontario families have more money in their pockets while keeping housing affordable”
According to the Ministry of Municipal Affairs and Housing
- The average rent increase guideline from 2004 to 2013 was 2.1 per cent. The average rent increase guideline from 1993 to 2003 was 3.1 per cent.
- The Ontario government passed legislation in 2012 to amend the Residential Tenancies Act, 2006 to ensure that the guideline is capped at no higher than 2.5 per cent.
- The 2014 guideline applies to rent increases that occur between Jan. 1 and Dec. 31, 2014.
- A tenant must be given proper written notice of a rent increase at least 90 days before the rent increase takes effect.
- The guideline is calculated under the Residential Tenancies Act, 2006, which came into force on Jan. 31, 2007. The calculation is based on the Ontario Consumer Price Index, a measure of inflation that is calculated by Statistics Canada.
Many landlords have voiced their concerns that such a low rate will not allow them to cover their growing expenses.
Some tenants have also voiced their displeasure stating that landlords can raise the rent while wages remain stagnant and many landlords are using ‘above guideline’ rent increase to rents far beyond the rent increase guideline.