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Difference between revisions of "Rent Increase in Residential Tenancies (19:VI)"
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Rent Increase in Residential Tenancies (19:VI) (view source)
Revision as of 22:38, 15 November 2022
, 22:38, 15 November 2022→A. Rent Increases and Notice
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== '''A. Rent Increases and Notice''' == | == '''A. Rent Increases and Notice''' == | ||
Landlords can raise rents by a set amount each year and can apply for rent increases above that amount (RTA, s 43(1)). A tenant may also agree to pay a greater increase than the percentage permitted; this agreement must be in writing. If the tenant does not agree then the landlord is required to go through the dispute resolution process (RTA s 43 (3)). The percentage for allowable rent increases is the inflation rate (Consumer Price Index, or “CPI”) | Landlords can raise rents by a set amount each year and can apply for rent increases above that amount (RTA, s 43(1)). A tenant may also agree to pay a greater increase than the percentage permitted; this agreement must be in writing. If the tenant does not agree then the landlord is required to go through the dispute resolution process (RTA s 43 (3)). The percentage for allowable rent increases is the inflation rate (Consumer Price Index, or “CPI”). '''The maximum allowable increase changes each year on January 1st.''' Check the webpage titled Rent Increases (http://bit.ly/1cWKrDB) on the RTB website to find the maximum rent increase allowed for the current year. The increase can occur every 12 months of the tenancy with the time period running from the date of the last rent increase for that tenant or the date the rental agreement was entered into (s 42(1)). A tenant may not apply for dispute resolution to dispute a rent increase that complies with s 43(1) (permitted increase or an Arbitrator ordered increase). If a landlord collects a rent increase that does not comply with the RTA, the tenant may deduct the entire increase from the rent. The tenant should communicate the reason for the deduction to the landlord before taking this form of action. | ||
:'''NOTE:''' As of this writing (June 2022), the Provincial Government was publicly considering an amendment to the rent increase formula as a response to rising inflation. Be sure to verify whether any such changes were made following the publication of this guide. | :'''NOTE:''' As of this writing (June 2022), the Provincial Government was publicly considering an amendment to the rent increase formula as a response to rising inflation. Be sure to verify whether any such changes were made following the publication of this guide. | ||
The landlord must give written notice of a rent increase at least three full months before the increase becomes effective (s 42(2)). If the notice of rent increase is not in writing in the approved form, it is invalid and of no effect. If the landlord gives notice of less than three months, or if the increase is to take effect less than 12 months from when the tenant moved in, or from when the tenant’s rent was last increased, the original notice will self-correct and will take effect on the earliest lawful date, provided it is otherwise correct. The tenant should notify the landlord about any self-correcting dates. | The landlord must give written notice of a rent increase at least three full months before the increase becomes effective (s 42(2)). If the notice of rent increase is not in writing in the approved form, it is invalid and of no effect. If the landlord gives notice of less than three months, or if the increase is to take effect less than 12 months from when the tenant moved in, or from when the tenant’s rent was last increased, the original notice will self-correct and will take effect on the earliest lawful date, provided it is otherwise correct. The tenant should notify the landlord about any self-correcting dates. | ||
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*the landlord, in the 18 months preceding the application, made a significant capital expenditure incurred for the purpose of installing, repairing, or replacing a major system of component of the rental property. | *the landlord, in the 18 months preceding the application, made a significant capital expenditure incurred for the purpose of installing, repairing, or replacing a major system of component of the rental property. | ||
:'''NOTE:''' The purpose of the expenditure must be necessary to a) comply with health and safety standards, b) repair or replace a malfunctioning or inoperative system or component, c) reduce energy usage or greenhouse gas emissions, or d) improve the security of the residential property. | :'''NOTE:''' The purpose of the expenditure must be necessary to a) comply with health and safety standards, b) repair or replace a malfunctioning or inoperative system or component, c) reduce energy usage or greenhouse gas emissions, or d) improve the security of the residential property. | ||
:'''NOTE:''' Applications shall not be granted where the need for the capital expenditure arose because of inadequate repair or maintenance on the part of the landlord, or where the landlord has been paid from another source. Capital expenditures may not be claimed again for at least 5 years. | :'''NOTE:''' Applications shall not be granted where the need for the capital expenditure arose because of inadequate repair or maintenance on the part of the landlord, or where the landlord has been paid from another source. Capital expenditures may not be claimed again for at least 5 years. | ||
The rent increase formula for Manufactured Home Parks is inflation plus the proportionate amount of the increases to regulated utilities and local government levies. | The rent increase formula for Manufactured Home Parks is inflation plus the proportionate amount of the increases to regulated utilities and local government levies. | ||
== '''B. New Lease with Same Tenant and Location''' == | == '''B. New Lease with Same Tenant and Location''' == | ||
