Caps on Rent Increases!

Ontario Government Seeks to Implement Rent Increase Caps in 2013

Last week, the McGuinty government introduced legislation that, if passed, would permanently cap the annual rental increase guideline at a maximum of 2.5%. The legislation is aimed at ensuring tenants continue to have safe and affordable housing in Ontario. If this legislation passes it would take effect in 2013.

 While the annual rental increase guideline will still be based on the Ontario Consumer Price Index, the rent cap would be in place to prevent the increase going above 2.5%. The only advantage of this legislation for owners of apartment buildings is that it promises to also ensure the guideline never drops below the 1% mark, as it did in 2011.

 FRPO have indicated that no one within the housing industry, from a landlord's perspective, was consulted prior to this announcement. They have issued a public media statement denouncing the change and demanded a meeting with the Minister of Housing and Dalton McGuinty to discuss the impact this will have on our industry.

 For more information about this legislation, and to find contact information for having your voice heard, visit the Ontario government's website at:

http://news.ontario.ca/mah/en/2011/12/ontario-moves-to-cap-rent-increases.html

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Shayzaad Kassam

Shayzaad Kassam

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CENTURY 21 Millennium Inc., Brokerage*
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