I'm confused by this comment at the Ministry web site when speaking about the Bill:
Tenants would benefit from greater certainty that would ensure affordable and stable rents so they have safe and affordable housing. For landlords, this would ensure a fair return so they can properly maintain rental properties.
So if inflation is set at 7%, and the guideline is capped out at 2.5%, that would ensure a fair return to the landlord? How does that math work? The methodology will remain the same; Minister Wynne said today that using the CPI is fair and transparent. So it seems that the government believes that the mathematical calculation is fair....that is until the resultant increase would be greater than 2.5%. How then does the landlord "properly maintain their rental housing".
But let’s look at the facts around the 2012 guideline that was set at 3.1%. Prior to the Liberals enacting the Residential Tenancies Act in 2007, the annual guideline was based on a 3 year rolling average of eight building operating costs. This blending of 3 years was used to smooth out the bumps of any one given year that may have been atypical. It was Minister Bartolucci’s government that changed it to the current system which looks at only the most recent year of the Ontario Consumer Price Index.