This was an interesting Article in the Toronto Star ... How Much Can Your Landlord Really Increase Your Rent By? Well, if you live in a New Condo (built after 1991) it can be very tricky.
The Toronto Stars article may give you some insights into the powers of a Toronto Landlord in high demand neighbours, especially along the subway line.
April 2013 - Kerri Lynn McAllister was shocked last month to receive notice of an almost 10 per cent increase — $150 a month — on the downtown condo she and her boyfriend had been renting for $1,625. She was even more surprised to find out the hike — three times what’s allowed for most apartments under provincial rent controls — was perfectly legal.
“I thought this was wrong because we were protected under the Landlord and Tenant Act,” says McAllister, 27, who lives in a 700 square foot condo near Adelaide St. and University Ave. “I was shocked, and all my friends who live in condos were shocked, to find out that we are powerless,” said McAllister, who works for a Canadian mortgage rate comparison website. The now-renamed Residential Tenancies Act sets out tenant protections for all rental units across Ontario, but rent control provisions only apply to buildings occupied before Nov. 1, 1991.
That’s turned out to be great news for condo investors, allowing them to pass on escalating maintenance fees and other costs almost directly to their tenants.
But for a growing number of condo tenants, it’s making for an uncertain future. Some in the hugely popular Maple Leaf Square area south of Union Station have seen rents for two-bedroom units spike from $2,000 to more than $2,500 per month just in the last three years.
Here is the full Toronto Star Article - Worth the Read for Every Realtor and Investor!
You may wish to review the Residential Tenancies Act
Pay special attention to Section 6 - Subsection B
Exemptions from Act
Rules relating to rent
(2) Sections 104, 111, 112, 120, 121, 122, 126 to 133, 165 and 167 do not apply with respect to a rental unit if,
(a) it was not occupied for any purpose before June 17, 1998;
(b) it is a rental unit no part of which has been previously rented since July 29, 1975; or
(c) no part of the building, mobile home park or land lease community was occupied for residential purposes before November 1, 1991. 2006, c. 17, s. 6 (2).