How Much Can Hamilton Landlords Raise the Rent in 2016? It’s 2.0 Per Cent
Are you going to raise the rent this year? What about in 2016? Many landlords are considering this as costs continue to rise. It’s not only higher taxes, as increased costs also include the rising prices for plumbers, electricians and contractors. After all, good landlords make sure they maintain their rental properties and keep them in excellent condition.
In Ontario, most landlords who own private residential properties are covered by rent control and the laws of the the Residential Tenancies Act. This means in most cases you can only increase the rent by the annual government guideline.
According to the Ontario Landlords Association Hamilton landlords can raise the rent by 2.0 per cent in 2016.
Will a 2.0 Per Cent Increase Cover Your Costs?
Many landlords feel this is too low and won’t cover their costs. The good news for some is your rental unit might not be covered by rent control. This means you don’t have to follow the rent increase guideline.
Types of properties the rent guideline doesn’t apply to include:
1. Vacant Units
If your rental property is vacant you are allowed to raise the rent as much as the market will bear. This applies if you are just starting to rent out to your first tenants or if your old tenants have left and you are marketing to find new ones.
2. Residential Units First Occupied On or After November 1st, 1991
If your property is older than 1991, you are covered. The 1991 rule is an important one for landlords to know about.
3. Social Housing
Most social housing is owned and run by the government and they aren’t covered.
4. Nursing Homes
These are not covered.
5. Commercial Rental Properties
Many people prefer to invest in commercial properties. Not only are are evictions for non-payment of rent easier than a residential property, but you aren’t cover by the rent increase guideline.
Are You Going To Raise The Rent in 2016?
If you are make sure you know if your rental property is covered by the annual rent increase guideline or not.
Timing for Rent Increase in Ontario
You also need to make sure you provide your tenants with the proper time frame for the rent increase. In a majority of cases landlords can only raise the rent twelve months after your tenants first moved in or twelve months since the last increase.
You also have to provide your tenants ninety days notice in the approved of manner according to the Ontario Landlord and Tenant Board. Make sure you know the rules and follow them carefully.