Sometimes, you can negotiate what bills will be included in the rent but it is ultimately their decision. Although rental housing prices are based on current market prices in Ontario, there are no limitations to what a landlord may ask for rent.
The market price for a unit can be significantly higher than what the tenant before you paid. There is no maximum amount of rent that a landlord can charge a new tenant, with the exception of non-profit housing like: rent-geared-to-income RGI or subsidized, co-ops , and some student housing.
Ontario is a rent-controlled province for the most part, with a few exceptions. This means that a landlord can only increase your rent by a limited amount each year. Newer buildings are not rent controlled and landlords do not need to follow the same guidelines. Once you've completed the first 12 months on the lease, your landlord can only increase your rent by a limited percentage.
This maximum increase amount is based on the yearly guideline limits set out by the Ontario Ministry of Municipal Affairs and Housing and it is based on the Ontario Consumer Price Index. For example:. In most cases, state law or your lease agreement will dictate both when and how to communicate a rent increase. Check with your state laws and your lease agreement to determine the amount of notice you need to give. Reach out to your tenant 90 days before the lease is up to let them know there will be a rent increase if the lease is renewed.
This gives your tenant the opportunity to adjust their budget and prepare for any increase. Sending the letter 90 days in advance also gets tenants thinking about their plans early. You can also use this opportunity to give them an incentive to renew their lease early. Clear, professional communication will go a long way towards reducing conflict with a tenant over rent increase.
Written notification is the best way to inform your tenant of a rent increase, and may be required by local law or your lease agreement.
When you provide written communication, you can:. You may also want to use this rent increase notice for reminders of your payment policies and late fees, even if they are already clear in the written lease.
Be sure to check your lease and local law to make sure your written communication complies with any relevant requirements. The more satisfied a tenant is in general with living on your property, the less likely they are to complain about a small rent increase. If not, and they do express concerns, here are some ideas for specifically addressing tenant complains.
Explain that your own expenses are going up, and cite specific examples such as maintenance costs, utilities, property taxes, insurance premiums, or other aspects of your rental business. This will remind them that a small increase in rent will enable you to keep the property maintained and will actually benefit them in the long run.
In this case, you could take the time to educate your tenant on the market rate. No tenant will be happy about paying more. However, if you know how to raise rent in a structured and fair way, you can get through it with less complaints.
You can do this in two ways. The first would be to send them a rent negotiation letter. In the letter, you should describe in clear terms why you can't or don't think you should pay the increase. You can detail your financial situation, or make reference to your rental history. Have you always paid the rent on time and in full? Are you a model tenant? Highlight those reasons the landlord will want to keep you on as a renter.
Being a good tenant can also be grounds for even lowering your rent , depending on your situation. You can also arrange a meeting or call your landlord to negotiate the rent increase.
When doing this, make the same points as you would in a negotiation letter but are able to have a straightforward conversation. Sometimes it is helpful if you can suggest signing onto a longer lease.
Therefore, guaranteeing the landlord will have a renter in that unit for the foreseeable future. If all other attempts to negotiate with your landlord one-on-one have failed, you may find strength in numbers. Check with the other tenants in your building to see if they are ok with the rent increase. If more people oppose the increase and are willing to present a united front, your landlord could rethink the rent hike. Collective action is a powerful tool.
If the majority of the building opposes the rent increase and the landlord moves forward, they could be facing multiple people moving out at the same time. This gives them more work to suddenly try to fill the empty units. Having reliable, trustworthy tenants makes their job easier. This incentivizes them to work in good faith with the tenants they have. If you've tried to take all the above actions and the increase is still moving forward, the sad fact of the matter is that you will have to pay the new rent.
Can't afford the new rate and can't fight it? You'll have to start looking for a new place to rent. Unless you live in a city with rent control, occasionally dealing with rent increases is, unfortunately, a necessary part of a renter's life. Sometimes they can also feel very unfair. But by using the above resources, you can fight or even stop a rent increase. Zoe Baillargeon Zoe Baillargeon is an award-winning writer and journalist based in Portland, Oregon, where she covers a variety of beats including travel, food and drink, lifestyle and culture for outlets like Apartment Guide, Rent.
In her free time, she enjoys traveling, hiking, reading and spoiling her cat. Download the Rent. All rights reserved.
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