HomeMy WebLinkAboutThe Lucknow Sentinel, 1986-12-31, Page 5Laitcknow Se find, Wednesday, December 01,1986 Page, 5
TIENT REVIEW UPDATE FOR TENANTS AND LtORDS
The Ministry of Housing announces the
Rent Review Guideline for 1987.
The Rent Review Guideline for next year has been calculated at 5.2 per cent. This is the amount by
which a landlord can increase the maximum rent for a unit dtiri n ' 1987 without approval from the
Ministry of Housing.
.In passing the Residential Rent Regulation Act, 1986, the Ontario Government has created a
new system of rent review for the Province of Ontario to increase protection for tenants and to
encourage the construction of new rental housing.
One of the important features of this new legislation is a Rent Review Guideline that reflects
changes in inflation and promotes proper building maintenance for tenants..
pr-he major features of the Residential
Rent Regulation Act are:
• The extension of rent review to
cover all private rental units in
Ontario.
• The creation of a streamlined rent review
process, designed to be accessible, quicker and
ensure consistency.
• The establishment of a flexible Rent Review
Guideline, adjusted annually to reflect changes
in inflation and other economic factors.
• The creation of an Ontario -wide Rent Registry
to record the maximum legal rent for every
rental unit in, the province. , •
• A Residential Rental Standards Board to
ensure the proper maintenance of all rental
properties in Ontario.
The: Guideline has changed.
Until now, the Guideline has been a fixed amount;
that did not change with economic conditions.
The new Rent Review Guideline will be
adjusted annually. It will be calculated using
the most up-to-date components of the
Consumer Price Index and other economic
indicators. And it will apply to all rental units
in the province.
How the new Rent Review
Guideline is calculated.
•The formula used to calculate the 5.2 per
cent Guideline for 1987 is based on changes
in the cost of maintaining a typical well-
run rental building.
• The new Guideline calculates the average
change in costs over the preceding three-
year period.
• 'Tenants receive greater protection in times
of high inflation.
• Landlords have sufficient funds for good
building maintenance. A new Residential
Rental Standards Board will help ensure
proper maintenance of rental units through-
out Ontario, and failure to meet these
standards may result in either suspension
or forfeiture of rent increases. '
Tenants can apply for a
review of rent increases
that are at or below
the Guideline.
Tenants who wish to challenge a 5.2 per cent
Guideline increase may apply to the Ministry
of Housing for rent review on such grounds
as changes in the standard of maintenance
and repairs.
Landlords are required to
justify a rent increase
greater than the Guideline.
A landlord who requests more than the 5.2 per
cent Guideline increase must apply to the
Ministry of Housing for rent review to justify the
increase. The landlord and tenants will review
the matter with staff of the Ministry of Housing
at a local Rent Review Office. A decision ,
reached at the local level may be appealed by. .
either the tenant or landlord to the newly-
created Rent Review Hearings Board.
The Guideline will be
announced by August 31
each. year:
In future, the Ministry of Housing will announce
the Guideline by August 31 for the upcoming year.
Some landlords have already served their
tenants with notices of a rent increase due early
1111987.
Tenants in buildings
constructed after 1975 are
protected for the° first time.
These are tenants whose units are being brought
under rent review by this Act.
• Landlords who have charged tenants more
than the Guideline since August 1;1985, will be
given a 60 -day period early in the new year to
justify these increases.
• Landlords not applying to rent review within
the 60 -day period mast rebate excess rents to
tenants.
• For the present, tenants should pay the amount
requested in the notice from their landlord until
the matter is resolved by rent review.
• finder no, ircumstanees should tenants make
immediate deduetions from their rent cheques
Ministry.
of
Housing
Ontario Hon. Alvin Curling Minister
Only one rent increase
allowed annually. •
• Landlords must give tenants at least 90 days
written notice of a rent increase.
• The rent for a unit can be increased only
once in a 12 -month period.
Tenants in buildings
constructed before 1976
continue to be protected.
These are tenants whose units were under rent
review prior to the passage of the new Act and
"whose units continue to be under rent review
• If the landlord's rent notice is for less than the
5.2 percent Guideline, the tenant should pay
the amount in the notice.
• If the landlord's rent notice is for more than
the 5.2 per cent Guideline, the most the tenant
should pay is 52 per cent.
• If the landlord has applied to the Reszdent2al •
Tenancy Commission for a 1986 rent increase
but has not yet received a final order, the tenant -
should pay the amount in the landlord's notice
or4•per cent, whichever is lessp.:
• If the landlord has been to rent review and has
received a decision, the tenant must pay the "
amount asiopprovedn. Pliancyby the Residential ancy
For more information, complete and
return this coupon.
MINISTRY OF HOUSING
RENT REVIEW DIVISION
4TH. FLOOR, 777 BAY STREET
TORONTO, ONTARIO MSG 2E5
YES! Please send me further information
explaining the new Rent Review Guideline.
NAME
. ADDRESS
CI'T'Y
P
POSTAI. C()l)F
Send today for more Information about the new Rent Review Guidefine
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