How to avoid an exorbitant rent increase
At XLR8 Realty we have seen how many buyers start off as tenants and ladder up. However, with the increase in rental and lease costs, it has substantially more difficult for renters to take that next step. How many renters actually read the entire lease when signing for a new dwelling? How many actually know their rights surrounding rent increase laws? This shocking story is just one of many instances regarding excessive rent increase after the 2021 rent freeze that could have been avoided had this couple been well-informed prior to signing their lease. If you know the laws, you can protect yourself.
A Toronto couple was shocked once alerted that their $2,000/ month rent was raised to $2,500, a twenty-five percent increase. However, is this illegal or just a nuisance? New buildings as well as basement dwellings occupied for the first time after November 15,2018 are exempt from rent control. The owners of these new dwellings still had to follow the Covid restrictions of 2021 that came in the form of a rent freeze, however, with the new year, can now raise their rent costs however they see fit. The only way to avoid these substantial increases is to verify that the new dwelling is rent-controlled, meaning rent can only increase by more than 1.2% IF the landlord gets approval from the Landlord and Tenant Board OR to add a clause to your lease stating a yearly maximum allowance by which rent can be increased.
For full story, visit the CTV News page.
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