Friday, July 29, 2011

The rent control guideline for 2012 will be 3.1%

The rent control guideline for 2012 will be 3.1%, up from the 2011 guideline of 0.7%. The 2012 guideline is calculated using CPI data from June 2010 to May 2011.

The rent guideline is based entirely on a pre-determined formula based on Ontario’s consumer price index. The guideline will also mean that there will be a change to the threshold for what qualifies for an extraordinary operating cost increase in 2012. According to the regulations, “an increase in the cost of municipal taxes and charges or utilities is extraordinary if it is greater than the guideline plus 50 percent of the guideline”. That means that the threshold for extraordinary operating costs will be 4.65% for 2012.

The interest rate on last month’s rent deposits also changes in accordance with the Residential Tenancies Act which requires interest to be paid to the tenant annually at a rate equal to the guideline. The interest rate on last month’s rent (LMR) deposits for 2012 will be 3.1%.

The rent for a unit can be increased up to the guideline limit if at least 12 months have passed since a tenant first moved in, or if at least 12 months have passed since the last rent increase.  A tenant must be given proper written notice of a rent increase at least 90 days before the rent increase takes effect. The written notice should be on the N1 Form, “Notice of Rent increase”, available from the Landlord Tenant Board website, www.ltb.gov.on.ca, under the section “Notices of Rent Increases”.

2 comments:

Anonymous said...

What happened to the proposed increase of 2.5% announced by McGuinty on Dec. 6/11??????????

CINDY said...

I have lived in my housing rental unit for 9 years my max rent if not gearid tomy income is 875.00 for 2012. I have endured from 2003 till now a total of 21.10% increase. It is calculated on my GORSS not what I bring into the house...so i pay rent on the taxes I pay. Seems a little unfair. Included in that i mustclaim my child support as income. I angrily disagree to this. Spousal support yes but not CHILD support paymts...I have to work 2 jobs to pay geared to income and then when I reach my max income, I pay the max...it is a lose-lose for me and a win-win for the housing corp

Cindy