Hey, it’s Lawrence Mak from EXP Realty, here with some information for all you landlords out there that have an investment property.
I wanted to go through three important changes to the different rules on January 1st, 2019 to the RTA.
The RTA, as you know, is the Residential Tenancies Act, and it governs all the different interactions between both the tenant and the landlord.
The first thing you need to know is that you’re allowed an increase of 1.8%. That’s the amount that was approved in 2019 and based on inflation. This is important because you really want to make sure that your rent keeps pace with inflation.
For example, the condos in the past three years, on average, appreciated in value by 16%.
Click here for more statistics.
If your rent isn’t keeping pace with inflation, then you’re going to have a really, really, expensive asset, and a tenant that pays a really, really, low rent. And no really easy way of getting them out.
The second thing that you really need to know about the actual rent increase is that you have to provide 90 days written notice. It’s important that it’s 90 days, and that it’s written notice.
This is of course very important because if you didn’t really follow the rules it might be ruled later on, in the future, that your price increase was illegal and then all that amount would be rolled back and then you’ll end up with massive liability.
The last thing is that notices can now be given by email. This has to be pre-approved by the tenant.
What happened before, is that if you were wanted to sell your property and there was a tenant inside, every time you needed a showing you had to give 24 hours notice, that’s normal, that’s the law. But you would have to drive over to the unit and either hand them a written notice or post it on the door. And whenever you did that it was just a lot of hassle when you’re trying to sell the unit. Now, at least with pre-approval, you can just send them an email and say, “hey, there’s going to be a showing in about 26 hours from now, just wanted to let you know.”
For more rent increase guidelines, please visit www.ontario.ca.
Those are three different changes in 2019. Hopefully, that’s been educational. If you’re a landlord that has a property that you’re curious about what the value was, please don’t hesitate to contact me for a no-obligation market evaluation.
Call me any time, 416-276-4895.