Some Ontario Renters are Facing Unregulated Rent Increases. Here’s Why it's Legal.
Updated: Oct 9
Original article by:
STOREYS
September 14, 2022
📰 Read the FULL ARTICLE here.
I spoke with STOREYS about Ontario renters facing large rent increases in newer units that aren't covered by rent control. Here are the highlights and my contributions.
Key Takeaways
In Ontario, rental units first occupied after November 15, 2018 aren't covered by rent control, so there's no cap on increases.
Landlords aren't required to tell tenants whether a unit is rent controlled.
Even without rent control, landlords must give at least 90 days' notice and can generally raise rent only once every 12 months.
Tenants who suspect an illegal increase should get legal advice quickly, since the window to challenge it is limited.
Building future rent increases into your budget is one of the best ways to protect yourself.
My Perspective
There's no blanket answer for how much of your income should go to rent. It depends on your other debts, your monthly expenses and whether you already have savings in place.
"There are a lot of factors at play informing an individual's capacity to pay for things."
As a guide, CMHC uses 32 per cent of income as the maximum for monthly housing costs when assessing mortgage eligibility, and the same thinking can apply to rent. In a city as expensive as Toronto, though, it's not unusual for people to spend as much as half their income on rent. If you live in a unit without rent control, build an emergency fund of at least three months of basic living expenses, plus one extra month of rent.
"If you can set aside just one month of extra rent then this can cover the difference of a 5% increase for 20 months, a 2.5% increase for 40 months, or an absurdly high 10% increase for ten months."
Originally published in STOREYS by Zakiya Kassam on September 14, 2022. Use the link at the top of this post to read the full article.
Comments