Tuesday, August 2, 2011

3.1% - 2012 Rental Rate Increase

This is welcome news, having a 3.1% rental rate increase in Ontario for 2012.  This is great news for landlords and although they do not believe it, great news for tenants as well.  Good landlords will have the money available to make necessary upgrades to their rental units.  On an average Ottawa rent on a new home condo of $1800 this would mean an increase of $55.80 per month ($669.60 annually).

This announcement is a strange one, after last year landlords were blindsided with a ridiculous 0.8% increase, especially when landlords were hammered with HST rates on electricity and other expenses.  I guess optimists will say that this gives a two year average increase of 1.95%, but I think many Ontario landlords were very disappointed in the previous years increase.  Seems a little bit like political posturing ...  

Provincial Liberals announce rent rate hike in 2012
680News staff Jul 29, 2011 15:13:58 PM

8 TORONTO, Ont. - The McGuinty Liberals announced Friday that they are going to change the way Ontario's rent increase rate is set, directly after announcing one of the largest rate increases in years.

Rick Bartolucci, Ontario's Municipal Affair and Housing Minister, made the promise after announcing that landlords would be able to increase their tenants' rent rates by up to 3.1 per cent in 2012.

"We believe we have to revisit the legislation," Bartolucci said. "Fix the legislation so that the increase reflected is in line with what's happening in the real world for those who rent."

The rent increase guideline is currently set according to the consumer price index, which incorporates inflation into how much more everyday items cost than they did the year before.

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