Advice on Rent Calculations
It is up to you to ensure that your monthly rent is the correct Legal Rent for your unit. Keep in mind that if you pay the landlord an unlawful rent without objection or correction for 12 consecutive months, that unlawful rent could become legal and the basis for all future rent calculations.
Rent increase deemed not void
135.1 (1) An increase in rent that would otherwise be void under subsection 116 (4) [notice requirement] is deemed not to be void if the tenant has paid the increased rent in respect of each rental period for at least 12 consecutive months. 2020, c. 16, Sched. 4, s. 24.
Rules:
1. Keep a copy of your lease.
2. Keep copies of all:
· the landlord's N1 Notices of Rent Increase
· Landlord and Tenant Board Rent Orders of Above Guideline rent Increases (AGIs) (these also outline future rent reductions)
· Landlord and Tenant Board Rent Orders for City of Toronto Property Tax Reductions that you receive throughout your entire tenancy.
3. Always pay only the Ontario Rent Increase Guideline amount on your lease anniversary date, never the landlord's rent increase request if it is based on an AGI application. (The N1 will indicate if this is the case.)
4. Always deduct the City of Toronto Property Tax Reductions from your monthly rent as soon as the Rent Order permits and advise the landlord in writing that you are doing so.
5. Set aside sufficient funds to make lump sum AGI and/or property tax payment adjustments to the landlord when ordered to by the L&TB.
6. If your rent is reduced because of a property tax rent order, or if you have failed to follow Rule 3. and the landlord's AGI application is reduced, credit card or bank Pre-authorised Payment Plans (PAPs) and post-dated cheques are difficult to adjust (and agreement for a change is required from the landlord). Post-dated electronic transfers from your bank account are much more flexible.
7. Ask the landlord to provide you with an annual account reconciliation showing your legal rent and the amount of your Last Month's Rent Deposit (LMRD) and make sure that it agrees with your calculations.