Rent Increase Guidelines for 2006

 

The year 2005 guideline is 1.5 %. The 2006 guideline is 2.1 %.

A guideline increase does not need approval of the Tribunal.

In most cases, an increase above the guideline needs approval of the Tribunal before it can be charged.

  Increase above the guideline

A landlord can apply to the Tribunal for an increase above the guideline if:

  • the landlord’s costs for municipal taxes and charges, and/or utilities, have increased significantly,
  • the landlord has done major renovations or repairs, or
  • the landlord has added security services.

Rent increases for repairs, renovations or security services cannot be more than 4% on top of the guideline each year. For increases in the cost of municipal taxes, charges or utilities, there is no limit on the amount of rent increase that can be approved.

A tenant can agree to an increase above the guideline if the landlord will do major renovations or repairs, buy new equipment, or add a new service for the tenant.

This agreement must be in writing, on a form obtained from the Tribunal. The highest increase that can be agreed to is 4% above the guideline.

A tenant has five days after signing an agreement, to change their mind and tell their landlord in writing they do not agree to the increase.

If there is an agreement to a rent increase above the guideline, the landlord does not have to apply to the Tribunal for approval of the increase.

  Rent reduction

A tenant can apply to the Tribunal to have his or her rent reduced if:

  • the landlord did not keep a promise in an agreement to a rent increase above the guideline, or
  • the municipal taxes or charges on the rental property decreased, or
  • the landlord reduced or removed a service to the tenant without reducing the rent.
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