How Much Can Ottawa Landlords Raise The Rent For Existing Tenants in 2014? You Might Not Like the Answer!
According to the Ottawa Sun the 2014 allowable rent increase for Ottawa landlords will be the second lowest since 1975.
Yes, that’s right, 1975
Where you around then? Or if you were around do you even remember?
If you weren’t it was the era of disco balls, the Bee Gees, and Frampton Comes Alive (Google it).
Prime Minister Trudeau ruled the name (his name was Pierre, not Justin) and Star Wars was still a year away.
If you were there it was also the time when we had to line up to get gas. And the era of deflation. And even worse the Village People were every where.
To put it gently it was a long time ago!
Ottawa landlords can only raise the rent 0.8% in 2014
The rent increase for 2014 is the lowest in nearly three decades
The Ontario Landlords Association has alerted landlords about the 2014 allowable increase and how it is important for landlords across the province.
Ontario Landlords and Rent Control
According to the Ontario Landlords Association report on rent increases for 2014 many new Ontario landlords are unaware the province of Ontario has rent control.
Each summer the Ontario Ministry of Municipal Affairs and Housing announces how much landlords can raise the rent for their existing tenants.
If you want to raise the rent higher you have to apply for what is called an Above Guideline Increase, go to a Landlord and Tenant Board Hearing, and win your case by getting a government adjudicator to agree with you.
The Ontario Landlord and Tenant Board is notoriously ‘pro-tenant’ and landlords will be lucky to get an approved increase.
Toronto Sun News Report
The Sun reporter asked for comments from the Municipal Affairs and Housing Minister Linda Jeffrey.
Her spokesperson said the annual rental rate is based on the Ontario Consumer Price Index (CPI).
However, a member of the Ontario Landlords Association said to the Toronto Sun: “It has been difficult for these owners to absorb the 2010 HST hike and normal expenses with CPI-tied rent increases which don’t necessarily reflect the true cost of property management.”
According to this landlord many landlords are “selling their rentals in Ontario and either getting out the industry or investing someone else.”
Ottawa Landlord Rent Increase Guideline 2014
Let’s face it, a rent increase of only 0.8% doesn’t even come close to matching the increased costs landlords face.
This is yet another reason why tenant screening is so important
Once you rent to tenants in Ontario they might stay a long time.
And you can be trapped by Ontario Rent Control which will only let you raise the rent by tiny amounts next year.
This is yet another challenge for landlords in Ottawa beyond the vacancy rate we face in 2014.
We look forward to discussing this and other Ottawa landlord issues in 2014.