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Ontario Landlords Can Raise the Rent 0.8% in 2014

January 7th, 2014 · No Comments · 2014 Ontario Rent Increase Guideline, ontario landlords

 Landlords Success Ontario Landlords Rent Increase Guideline 2014

Yes, It’s That Low! And the Ontario Liberal Government Tries To Justify It!

Landlords all over Ontario were faced with shock and awe when they picked up their Sunday newspaper last week.

There is was.

A rare story about the Ontario rental industry.

Even more rare, the story was well-written with some very important and helpful interviews from people who know the industry well.

Toronto Landlords and Toronto Region Landlords

For Toronto landlords and property investors anywhere west and north of Toronto they saw the story in the Toronto Sun.

It was jaw-dropping for many new landlords and investors.

The report stated landlords could only raise the rent by 0.8% in 2014.

This low rate was despite obviously rising costs for landlords in Ontario.

Especially in the energy sector where prices are going through the roof in Ontario!

Ottawa Landlords and Eastern Ontario Region Landlords

The Ottawa Sun provided the same report.

It included some NDP MPPs complaining about the 1991 rent exemption.

And the Ministry of Municipal Affairs and Housing churning up a half-hearted defense of a policy they know it a cookie for tenant voters in Toronto and Ottawa.

Ontario Landlords Association Defense

Fortunately a member of the Ontario Landlords Association provided reason to the how low rent increase guideline debacle.

The OLA member explained:

1.         The Rent Increase Guideline Formula is Flawed

The formula for the Ontario rent increase guideline does not factor in the true costs of property management of rental properties.

2.         Ontario Landlords Cannot Charge a Damage or Pet Deposit

The means tenants have no incentive to repair damages or clean their place when moving out. This is a huge cost for landlords.

BC landlords and Alberta landlords can charge damage and pet deposits.

3.         Good Landlords Are Punished

Ontario landlords can charge whatever they want when tenants move out. However, the Ontario Landlords Association member explained that tenants like to stay with good landlords.

So bad landlords with tenants always moving out can charge whatever they want, but good landlords with long-term tenants are punished by the low rent increase guideline.

How Are Ontario Landlords Reacting?

Many landlords across the province are angry and upset and the provincial Liberal government.

The rent increase actually encourages landlords to evict their long term tenants because the rent increase guideline doesn’t allow landlords to keep up with increasing costs.

Ontario Landlords Challenges in 2014

This is just one of the manage challenges Ontario landlords face in the new year.

Landlord licensing is another.

Keep reading and we will keep you up to date on all the issues face in 2014.

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