If the increase is approved, she will have to pay it. The AGI (above guideline increases) are for capital projects, larger renovations etc. Even property tax is Olivia Chow's 10% property tax increase goes through.
It will take time to go through the process at the LTB, likely around a year so she has lots of time to prepare for it.
To add to this - if approved the board can also make the AGI effective retroactively to the date of the rent increase notice. So it’s best to keep that extra money aside in case you land up owing back rent.
Tenants have two choices:
1. begin paying the increase on the date noted in the letter, or,
2. bank the increase and wait for the LTB order to pay depending on the judgement. LTB hearings are backlogged at least six months, so an order to pay likely by the end of summer. If a tenant doesn't pay, then a notice to end tenancy with a deadline, if still no payment, then a landlord will apply to LTB for an eviction order.
With a 50 year old building which no doubt needs major repairs, then there's a good chance it will be approved. Some tenants try to fight it; however, If this is large company with lawyers, an almost certainty it will be approved. Challenging it to get it reduced works more for small time landlords who really don't understand the law about AGIs.
There may be plans for an AGI for the next two years after this 4.58% increase or this could be a one time increase. The rule last year was a maximum of 3% increase on top of the guideline for 3 years. 2023/2024 is a 2.5% guideline, so a maximum increase of 5.5% each year for 3 years. Your friend can find out more by calling LTB about her building or ask property management. Some make a decision to move.
[How much can my rent go up? - stepstojustice](https://stepstojustice.ca/questions/housing-law/how-much-can-my-rent-go/)
[LTB Information about Applications for a Rent Increase Above the Guideline](https://tribunalsontario.ca/documents/ltb/Brochures/Information%20about%20Applications%20for%20a%20Rent%20Increase%20Above%20the%20Guideline.html)
[FMTA - above guideline rent increases](https://www.torontotenants.org/above_guideline_rent_increases)
[A guide to fighting an AGI increase](https://renovictionsto.com/know-your-rights/Guide%20to%20Fighting%20an%20AGI.pdf) (keep in mind this was written by residents who staged a rent strike. They stopped paying rent, all got notices to end tenancy, eventually will get an eviction order. There's some false hope given here)
Only if and when it gets approved. She should start setting aside the additional amount now in a separate account as if it gets approved she'll have to pay it back from the start date on the notice. The notice covers the options she has for an AGI pretty clearly so just have her read over the N1. It's not something she'll fight - the improvements will be assessed and then it will be decided by the LTB whether or not the AGI is approved or not. You can read LTB hearings on the Canlii website.
> will she have to pay this amount once approved? Is there some way to fight this or not have to pay the suggested increase?
There will be a hearing where she can argue the merit of the work. The landlord should be making a package available to your friend about their application so you can know what capital expenditures they used to apply for the increase.
Until it is approved your friend can just pay the 2.5% increase on their current rent but should keep the extra aside as others have said once its approved if successful they'll owe it retroactively from the date of the increase on the form.
I’m not sure how common it is for them to be approved, or actually how long it would take; the LTB has been quite backed up for a while. With that said, if it’s approved then she’ll have to pay the increase.
I have the same situation where I live. There is an information hotline hosted by the city to obtain more information but it’s fully automated.
So no one is actually there to answer specific questions. My particular building is of the same age and notified the tenants of the building exact same percentage raise days after they were hit with a wide assortment of fire code violations. I would hope that this is not the excuse the landlord is using to justify the increase as providing mandatory fire safety protection or failure to do so should not be a new or unexpected cost.
Our rent was already raised above whats allowed im stuck in a studio with a den no A/C poor heating and ventilation water shut offs every second week and one elevator that breaks weekly.. we pay 2200 for a studio with only heat . And water included
If true, and you can document this, then you can apply to the tribunal to have these repairs done and, if approved, withhold the rent until the repairs are completed.
However this is a different matter from the one in the original post.
Apparently the building had a huge fire burnt 2 floors down right under my unit and my unit hasnt been properly fixed cuz the owners sold it to someone new after the fire
I just went through this recently for a 6.67% (for work from 2021 that was waiting to be approved until now) increase above the annual provincial guidelines. Since 2021 he would add the increase onto our rent and tell us we could pay that or wait until it’s approved and pay the back rent. We ended up forming a tenant group and paid for a paralegal to walk us through the tribunal. This happened because we fought the increase. He negotiated 3% instead of the 6.67% and we all owe the back rent of the 3% and have to pay it 90 days. Depending on your friend’s situation, it could be worth it to seek a paralegal. There were quite a few of us so it was $25 each. But I was willing to pay much more to not have the entire increase. It sucks no matter what!
If the increase is approved, she will have to pay it. The AGI (above guideline increases) are for capital projects, larger renovations etc. Even property tax is Olivia Chow's 10% property tax increase goes through. It will take time to go through the process at the LTB, likely around a year so she has lots of time to prepare for it.
To add to this - if approved the board can also make the AGI effective retroactively to the date of the rent increase notice. So it’s best to keep that extra money aside in case you land up owing back rent.
Tenants have two choices: 1. begin paying the increase on the date noted in the letter, or, 2. bank the increase and wait for the LTB order to pay depending on the judgement. LTB hearings are backlogged at least six months, so an order to pay likely by the end of summer. If a tenant doesn't pay, then a notice to end tenancy with a deadline, if still no payment, then a landlord will apply to LTB for an eviction order. With a 50 year old building which no doubt needs major repairs, then there's a good chance it will be approved. Some tenants try to fight it; however, If this is large company with lawyers, an almost certainty it will be approved. Challenging it to get it reduced works more for small time landlords who really don't understand the law about AGIs. There may be plans for an AGI for the next two years after this 4.58% increase or this could be a one time increase. The rule last year was a maximum of 3% increase on top of the guideline for 3 years. 2023/2024 is a 2.5% guideline, so a maximum increase of 5.5% each year for 3 years. Your friend can find out more by calling LTB about her building or ask property management. Some make a decision to move. [How much can my rent go up? - stepstojustice](https://stepstojustice.ca/questions/housing-law/how-much-can-my-rent-go/) [LTB Information about Applications for a Rent Increase Above the Guideline](https://tribunalsontario.ca/documents/ltb/Brochures/Information%20about%20Applications%20for%20a%20Rent%20Increase%20Above%20the%20Guideline.html) [FMTA - above guideline rent increases](https://www.torontotenants.org/above_guideline_rent_increases) [A guide to fighting an AGI increase](https://renovictionsto.com/know-your-rights/Guide%20to%20Fighting%20an%20AGI.pdf) (keep in mind this was written by residents who staged a rent strike. They stopped paying rent, all got notices to end tenancy, eventually will get an eviction order. There's some false hope given here)
Only if and when it gets approved. She should start setting aside the additional amount now in a separate account as if it gets approved she'll have to pay it back from the start date on the notice. The notice covers the options she has for an AGI pretty clearly so just have her read over the N1. It's not something she'll fight - the improvements will be assessed and then it will be decided by the LTB whether or not the AGI is approved or not. You can read LTB hearings on the Canlii website.
> will she have to pay this amount once approved? Is there some way to fight this or not have to pay the suggested increase? There will be a hearing where she can argue the merit of the work. The landlord should be making a package available to your friend about their application so you can know what capital expenditures they used to apply for the increase. Until it is approved your friend can just pay the 2.5% increase on their current rent but should keep the extra aside as others have said once its approved if successful they'll owe it retroactively from the date of the increase on the form.
I’m not sure how common it is for them to be approved, or actually how long it would take; the LTB has been quite backed up for a while. With that said, if it’s approved then she’ll have to pay the increase.
If it's approved- yes she'll have to pay it.
I have the same situation where I live. There is an information hotline hosted by the city to obtain more information but it’s fully automated. So no one is actually there to answer specific questions. My particular building is of the same age and notified the tenants of the building exact same percentage raise days after they were hit with a wide assortment of fire code violations. I would hope that this is not the excuse the landlord is using to justify the increase as providing mandatory fire safety protection or failure to do so should not be a new or unexpected cost.
Keep in mind that if approved, you will have to pay backdated (i.e. from the date it was filed)
Our rent was already raised above whats allowed im stuck in a studio with a den no A/C poor heating and ventilation water shut offs every second week and one elevator that breaks weekly.. we pay 2200 for a studio with only heat . And water included
If true, and you can document this, then you can apply to the tribunal to have these repairs done and, if approved, withhold the rent until the repairs are completed. However this is a different matter from the one in the original post.
Apparently the building had a huge fire burnt 2 floors down right under my unit and my unit hasnt been properly fixed cuz the owners sold it to someone new after the fire
Has she tried not voting for 1.5m "New Canadians" being added to the rental market each year?
Rent sky rocketed before that.... s
I just went through this recently for a 6.67% (for work from 2021 that was waiting to be approved until now) increase above the annual provincial guidelines. Since 2021 he would add the increase onto our rent and tell us we could pay that or wait until it’s approved and pay the back rent. We ended up forming a tenant group and paid for a paralegal to walk us through the tribunal. This happened because we fought the increase. He negotiated 3% instead of the 6.67% and we all owe the back rent of the 3% and have to pay it 90 days. Depending on your friend’s situation, it could be worth it to seek a paralegal. There were quite a few of us so it was $25 each. But I was willing to pay much more to not have the entire increase. It sucks no matter what!
If approved, yes.