We have had inquiries from a number of tenants about rent increases so here is a summary of what’s happening:
The Ontario Rent Increase Guideline is 1.5% for increases between January 1 and December 31, 2017.
The Ontario Rent Increase Guideline will be 1.8 % for increases between January 1 and December 31, 2018.
To the best of our knowledge, there are no Above Guideline Increases (AGIs) scheduled for:
- Grenadier Square West
77 Quebec Avenue
40 High Park Avenue
Vertica Management Services for Great West Life Realty Advisors
- Grenadier Square East
35, 65 & 95 High Park Avenue
66 Pacific Avenue
Vertica Management Services for 1213763 Ontario Inc.
- 299 Glenlake Avenue
Dmi Property Management
Two AGI applications have been filed for:
- High Park Village
111 Pacific Avenue
255 Glenlake Avenue
66 Oakmount Road
Minto Properties Inc.
a) TSL-67917-15 filed October 14, 2015 effective for renewals after January 15, 2016.
AGI requested – 1.75%
At the April 12, 2017 Landlord and Tenant Board (L&TB) Case Management Hearing for this AGI Application the L&TB limited the Applicant’s AGI request to 1.54%. However, a lower negotiated settlement between the parties was not achieved and the Application will now proceed to a Merits Hearing. At the Merits Hearing, the Applicant will present its case and HPTA and its counsel will present counter arguments. The L&TB adjudicator may issue a Rent Order at the Hearing or consider the information before issuing a Rent Order at a later date. A date for the Hearing has yet to be scheduled, but it appears that it could be some time in February, 2018.
b) TSL-80434-16 filed October 26, 201 effective for renewals after March 1, 2017.
AGI requested – 1.75%
A Case Management Hearing for this AGI Application has not yet been scheduled. It is unlikely that the L&TB will consider this Application until it has dealt with the previous Application TSL-67917-15.
Also as far as we know, Minto’s appeal of the City of Toronto’s December 31, 2016 0.63% Realty Tax Rent Reduction has not yet been scheduled.
Until these issues are resolved, our advice to all tenants is to never pay more than the Guideline increase on the renewal date of your lease and to always reduce your rent by the amount of any Rent Reduction Orders received. The onus is on you to take this action. Your landlord will always request you to pay the higher amounts. You are under no obligation to do so.
In the case of the Minto AGI Application TSL-67917-15 (noted above), following this strategy would have resulted, so far, in postponing the AGI component of annual rent increases for 20 months and is likely to postpone it for at least another 7 months. That is money in your pocket rather than in the landlord’s.
Keep in mind, however, that you will be required to make a lump sum retroactive payment of any rental payment shortfall declared after a L&TB Hearing. The L&TB usually provides tenants with a 60-day grace period to bring their account up-to-date after an AGI Rent Order is issued.
Also keep in mind that, prior to a L&TB Hearing, your landlord has no obligation to inform you of progress on its AGI applications beyond delivering your Notice of Rent Increase Form N1. So the first you may be aware that an AGI Application has been filed is when you receive your annual Notice of Rent Increase with the appropriate boxes checked. It is always good practice to hang onto that N1 form for future reference.
Hope this helps.