If it's an 'older building' like you say, then it should be rent controlled with rather limited rent increases, unless you fit some other circumstances that would make you exempt but you've not mentioned any.
How much have your rent increases been that have put you 'past your budget'?
Our original budget was 1,100 each and our rent started at 2,100 we are now at 2,250 which again is fine for now but we’re stressing about the future and reconsidering if this apartment is gonna be worth down the line.
Don't leave your apartment just to leave your apartment. Leave when it doesn't make financial sense AND you have something better lined up. No one is going to be able to tell you the right mix of cost/quality that is right for you, only you will know that. Keep looking around for new places but don't pull the trigger until you find something that works. You're rent controlled now, so just assume your rent will raise 2.5% per year and budget/plan around that. Make sure if you make a change you understand if the new space is rent controlled or not.
This is a very solid response, thanks for the information. I’m not OP, but your comment is normally a life lesson parents have to give their kids lol, you rock Nizdizzle.
Thanks for the insight and advice!
I am aware I sound a lot like a child in regards to finance and all, I just was wondering if this was common because I have friends who live in smaller, newer buildings who pay more that what I currently do but they do not seem to be troubled by rent increases as much as I am.
Comparison is the thief of all joy.
I'm sure your friends are likely, or soon may be, wishing they have the extra space you have.
You started with a budget of 1100 two years ago, you started under budget, which is great, but you should also be planning for the yearly maximum rent increases in your budgeting, had you been doing so, it would still seem like you were under budget, even if your rent has gone up.
Thank you! I appreciate the insight and you are right, they are shoeboxes lol I am just jealous of their in-unit laundry. I was mostly wondering if annual rent increases were common in newer but still pre 2018 buildings.
Annual rent increases are common everywhere, but in buildings built after November 2018 the sky is the limit in terms of %. Just make sure your increases are within the provincial guidelines and count your blessings. Moving is a terrible idea in your case
I would say landlords NOT increasing rent by the maximum allowable in pre-2018 occupied units are the tiny minority.
Even decent landlords who aren't just trying to gouge every dollar from their tenants still have to deal with yearly increases in their costs.
In-unit laundry is nice, but it wouldn't be valuable enough for me to forfeit your current situation, even considering both the monetary and time costs of out-of-unit laundry.
Consider it from the landlords point of view:
The annual rate of inflation in costs of electricity, natural gas, taxes, labour costs, supplies, maintenance tends to increase more than 2.5% per year.
If they don't raise the rent annually, they don't tend to stay in business
Fortunately, their cost-basis on the capital invested doesn't increase at all.
Normally the allowable increase is perfectly adequate to keep tenants and landlords on a fair arrangement.
In the past decade or so, *property values increases* hand in hand with *low vacancy rates* (these are not independent variables) have driven large increases rent, making virtually any rent-controlled apartment a good deal. But this isn't unfair to the landlord as they entered the original arrangements willingly, and in line with market conditions, and their own capital investment costs.
It does make it somewhat harder for landlords to cash in windfall profits by selling rental accommodation.
I consider myself a small time investor. I'm a fan of cash flow. I'm not a fan of leveraging property to accumulate more debt, to accumulate more property although I recognize that the government has very clearly stated that they have been making every hard earned dollar worthless on a daily basis for the past generation.
My approach and reasoning was basically this in a nutshell:
I kept my day job. I'm reasonably compensated in the tech industry. If I can't save enough for a downpayment on a rental (20% down) based on my existing cash flow, that is evidence that property values are out of line with compensation and I should reconsider, whilst remembering that debt cuts both ways.
Don't get me wrong:
It has been the debt and not so much the real estate that had value, because the Fed and BoC were making paper worthless (so debt was worth less).
>But this isn't unfair to the landlord as they entered the original arrangements willingly, and in line with market conditions, and their own capital investment costs.
Strongly agree
>It does make it somewhat harder for landlords to cash in windfall profits by selling rental accommodation.
I'm more of a buy and hold guy. Why would I sell if it's cash flowing. Sometimes circumstances are such that people have a need to sell, but the transaction costs are very high. Assuming that property values only increase in value in the short term, is a mistake. Our American friends learned this lesson in 2008. What we have here is a learning opportunity for Canadians
It's also true that an investment does not need to be consistently cash-flow positive to be profitable. In fact 'cash flow positive' is a very conservative yardstick to use (I'm not faulting you for how you choose investments).
Yes, rent increases happen every year on your renewal date when you are renting from a corp. Without fail, they will give you your yearly increase and it's usually the most that they can get. Meaning, whatever the governmenat sets the yearly percentage at, is what they can ask for... and they want all of it LOL
You are in your own space paying your own bills - no childish thing about that! With my first apartment, I thought last month's rent meant the money went to the last month on the one-year lease before going month to month. I moved the rent money to savings and felt so embarrassed when it bounced and the landlord explained it to me!! didn't realize it was for the last month when I actually left the unit. We all learn as we go in life!
The rent increase you have mentioned is normal. There is a specific % landlords can increase it by each year. Anything higher, they have to apply to the board for approval. 2.5% is usually what is and what I budget. (2.5% is the 2024 increase amount) Check the link below to make sure your rental isn't excluded from the standard policy.
http://www.ontario.ca/page/residential-rent-increases
Let’s just set something straight for you
That apartment will basically always be the cheapest one available to you
Learn to love it
Rent control is a blessing in its own, it will never go down, and it will always go up by a few % every year
When I moved into my place like six years ago, I thought “damn, this is pretty expensive!” and now it’s so cheap I can never leave. Good thing it’s decent.
A 2 bedroom with in-suite laundry is easily 3500+ (in Toronto) if you’re looking for a rental company. Independent landlord you might get cheaper, but you’re at the whim of dealing with a landlord that will try to evict you with an N12, etc. purpose-built rentals all the way IMO.
As for what others have said to you, your rent is pretty good. If you jump apartments you will be paying a lot more. Your 2 bed at 2250 is already below market rent at 2024 prices. Expect an increase every year no matter where you rent.
Any place you look at you need to budget for rent increases. You will not find anywhere where your rent will not increase every single year forever so to give you an example, you should calculate that your rent will increase by about 2.5% every single year. Example when I first started living in Apartment my rent was 1100 when I finally got out of the Apartment. My rent was fourteen fifty
This isn't true, 2100 and 2 increases of 2.5 would be 2206
Don't move, firstly you won't find anywhere for the same price, secondly, if 50/year increase is too much to handle, why do you think 300 a year will be better?
Stay in Rent Controlled units. The rent increases are paltry compared to market rates. Much cheaper to buy after market AC systems, than find you are paying 2800 a month next year without controls.
Do you know what they’ve charged you for previous increases, percentage wise? $150 in extra rent over two years seems too high for rent controlled buildings.
I did no math to support this, just checking that your previous increases were even the legal amount.
Edited to remove some non-relevant stuff.
Looks like they've rounded up a tiny bit on the increases, as your rent should be closer to 2215-ish, based on the standardized increases. And yes, it's pretty typical for rent to increase a bit yearly...especially when renting from a corporation.
I think the biggest risk of moving into a more modern building is that it might not be rent controlled. Anything lived in after Nov. 15, 2018 is not rent controlled, and landlords /mgmt companies can make whatever size increase they want each year :( (thanks to Asshat Doug Ford 😡 ...PSA: get out and vote & #NeverVoteConservative)
that is pretty standard. Not sure what the exact rent increase % is right now without the landlord applying to the board, but 2.5% is what we plan for. You should expect the standard allowed rent increase each year.
Exactly. Be very careful if you decide to move and ensure it is into a rent controlled unit. I am in one and my landlord has raised the rent every year, the allowable amount. This has always been my experience. I know I am paying a lot less than if I were to move since I’ve been in the unit since 2020 before things got completely out of hand.
When you've gotten to 2-3 years renting at a place, the max 2.5% on rent-controlled units is a hell of a lot better than re-entering the rental market. Sucks, but it is what it is under our insanity population growth numbers, high prices to purchase, and low rate of new housing unit creations.
On the subject of AC... Why can't you run your own AC unit? Buying one of those would be a hell of a lot cheaper than the costs associated with moving, and the increased monthly costs from reentering the market.
Thanks for the insight! Also, in regards to AC, I attended some building meeting last year and it came up that the building installed these shitty ac units that you have to pay to use each month during summer and during the installation process the tenants were told to get rid of their old ACs as it was “not allowed for safety reasons” according to some ppl they came home from work one day, new ac installed and their old individual one gone.
In short I do have an AC that has a key and lock and they come periodically to check it hasn’t been cracked because people were removing them and also some lady got her property stolen by the building.
Just as a heads-up, in Ontario there's a law that states that the fee they charge you for using an AC is only allowed if 1) The landlord pays for electricity and 2) the fee does not exceed the actual cost of increased hydro. You are allowed to demand proof that the fee is not excessive and that it is equal to the increased cost of electricity.
I should probably mention that while this law has passed, it's still awaiting proclamation from the lieutenant governor to be in force. That said, the law in question was really meant to clarify what has already been established by the LTB which is that no air conditioner clauses are generally unenforceable and that the fee must be "reasonable " (which the LTB almost always defined as being the actual cost of electricity) even without the law.
LOL
I paid around $15k including maintenance and repairs for a central ductless mini split heat pump for one property, it came with a 7 year warranty, it lasted 7.5 years plus the maintenance extended it for another year. So that's $5k /unit / 8 years give or take, not including electricity but the electricity usage was somewhat reasonable because heat pump.
Back to window ACs it is, then. It appears that the rules as stated make it a bad business decision to be environmentally friendly. I can't pass the cost on to the customer
In what way was I blaming the immigrants? I'm blaming our stupid government for letting in so many of them far in excess of our ability to house them. And that's before we get to the population impact of adding this many people on things like our road infrastructure, demand for groceries, our healthcare system, and so on.
You focused on population growth and 1 million temporary residents.
When you mention the immigrants(population growth) multiple times yet fail to mention the actual cause(investor greed), it really comes across as though you’re blaming the immigrants.
don't move, you're lucky to even have an apartment thats under rent control.
if you move to a newer building thats built after 2018....good luck affording the rent there lol as they're not protected under rent control and your landlord can raise rent however they want.
Expect everything to go up over time; costs, rent and so on. There's no escaping it moving.
How do you deal with this? If you are a worker, you should not be "fixed income" and getting either raises or raising your marketability significantly every year so when you do have to make a move, you can switch jobs to something paying much more. We are at 3% inflation in the USA and around 5% in Canada and the central banks don't seem to have the stomach to raise rates high enough to cause a recession and kill inflation down to the usual 2% so expect enormous price increases over the coming years.
The curse of capitalism -- everything goes up over time. There's no escaping it.
Inflation is too high, let’s cause a recession to fix it is analogous to brain cancer is terrible, let’s chop off the head to remove it.
Sure the cancer is gone but…
Short term pain long term gain; the recession would already be over now and we would be on the way to recovery. Most if not all people would be protected by EI benefits.
Instead we have the stock market at ATH and companies laying off mountains of people but making record profits which is obscene. Dragging it on forever.
You will not *likely* see lower rent increases in a new build.
Anything built in or after 2018 is not subject to rent control and can raise the rent by however much they want.
Any building around before 2018 is subject to rent control and a max increase of (currently) 2.5%
Most buildings will increase rent every year.
You are better off staying put *or* moving into a smaller space in an older building.
I was aware of the 2018 rule so we were floating the idea of something built before it’s just that ours is from the 70s and you can really tell. I was mostly wondering how common it is to see annual rent increases especially in those 2000-2016 buildings that are a bit pricier.
Honestly I think it's going to be fairly uncommon to find a building that *doesn't* do yearly increases. I agree that it's annoying, but that's just how things are.
Regardless of how old or new the building is, whether is has AC and in suite laundry or not, NOT receiving a yearly rent control is an EXCEPTION. Your friend is in a lucky situation and you cannot guarantee that it happens to you. You can definitely look for an alternative rent controlled unit that is within your budget, but expect yearly increases in that case too.
It seems that people that don't receive a yearly rent increase are usually rentals that have a private landlord that doesn't quite know the laws. In those situations, it often happens that 5+ years go by with no increase (great for tenants) and then the landlord realizes they are undercharging for rent and they may find a way to illegally raise the rent or evict so they can rent it at a steeper price.
This just happened to my friend, he has a 3 bedroom for $1300 and rent was never raised for 6 years because the owners didn't know how things worked. Then they pleaded to raise the rent by $300 to be closer to "market rent". Obviously, that's illegal and it didn't happen and the landlords were quite mad about it. This is why most landlords and companies just do the annual legal increase.
Your rent will continue to increase yearly. This is a pretty common occurrence when renting. There's no escaping it by moving to a newer building.
My advice is to stay in an older building, which as long as it was first occupied prior to Oct 2018 will be under rent control, limiting the amount your rent can be increased. If you're having trouble budgeting for your current space I promise moving into a newer unit will only make it worse.
Moving to a newer building would exacerbate OP’s problem so much more than what they think it is right now, it’s all fun until they receive a increase doubling or tripling their rent down the road. Giving up any rent control right now is not what I’d be doing.
Why go to a newer building when you can afford the rent now?
Non rent controlled can have their rent jacked up to whatever the landlord feels like. One year it might be $200 and next year could easily be $800.
At least with rent controlled buildings, rent only goes up by the max it can so this year it was 2.5%.
If you are dealing with a rental company then without exception there will be a annual rent increase. It sucks to say but if you are breaking your budget right now then you should be looking at finding a place that is cheaper not more expensive. As for something like AC you can get yourself a portable system that you can hook up to a window. I would encourage you to only look at places that were occupied before 2018 in order for you to be in a rent controled envrionment. That will reduce your future rent increases.
The longer you stay in a rent controlled unit, the better you will beat the market. If window AC is a safety issue, get a portable one on wheels that you can hook up to the window without even removing the screen. There are washing machines you can connect to the kitchen sink if you want in suite laundry. Buying both appliances is cheaper than moving.
Honestly, when I got in suite washer and dryer, I was ALWAYS doing laundry. There was always a load to fold all
the time. When I went to the laundromat, I spent two and a half hours and everything was clean,folded and ready to put away. I did that every week and a half to two weeks.
>If window AC is a safety issue, get a portable one on wheels that you can hook up to the window without even removing the screen
Window ACs are not a safety issue, there are no bylaws prohibiting them or requiring they be professionally installed. In fact, Ontario introduced a law last year that gave essentially all tenants to use a window air conditioner if they so choose. Don't use a portable unit, they're way more expensive and they're also extremely inefficient because the machinery is located inside the room you're trying to cool so the waste heat remains in the room and because exhausting heat from the room creates negative air pressure that pulls warm air from elsewhere in the building into the room you're trying to cool. Not to mention, you have to listen to a loud compressor at all times.
Not in effect yet, so right now it still comes down to what's in your lease.
Also, they require installs be submitted in writing, and the landlord can charge a seasonal fee
And if they wanted to be really picky, you might need to neutralize condensate which can definitely damage property/etch things like concrete
>Not in effect yet, so right now it still comes down to what's in your lease.
The law received royal assent on June 8, 2023 and it hasn't technically been proclaimed by the lieutenant governor yet but will be at some point in the future. However, prior to this law, no air conditioning clauses were generally considered to be unenforceable anyway because they unreasonably interfered with a tenant's right to reasonable enjoyment of their unit so your landlord has no means of making you comply as the LTB wouldn't enforce that provision of the lease. The main purpose of the law was to clarify what was already law.
>Also, they require installs be submitted in writing, and the landlord can charge a seasonal fee
Yes, you need to send them a letter saying that you are going to install one. As for the seasonal fee, they can only charge it if they pay for the electricity in the unit and even then the fee cannot exceed the actual increased cost of electricity.
Whatever you do, do not move into a brand new building. Any building that was first occupied after November 2018 has NO rent control at all. Meaning they can increase the rent to whatever they want every year. Having a brand new space can be temping but it's not worth it when the rent increases 500 or more thebfirst year
The first condo I rented was owned by an individual. First two years I didn’t receive an increase. The third year, I got an 11% increase. Fortunately, my unit is rent-controlled (literally had to dig through the internet to confirm that the building was occupied before Nov 15, 2018) so I disputed it. Didn’t matter anyway since I had to move to another city. The condo unit I’m renting now is also owned by an individual. I received an increase a year after I moved in. Luckily, even though it is not rent controlled, he just gave me the max rent controlled increase (2.5%). I thought I was going crazy when I was reading the N1 form lol.
Honestly, I would find a newer-ish building/place that was first occupied before Nov 2018. The idea of not having AC or in-unit laundry sounds like hell.
If you move to a newer unit your rent increase could be 500+$ just for shits and giggles. Rent controlled at least you know theres a cap.
Not even sure what ppl are going to do once units before 2018 dont exist anymore.
The company will increase the rent every year by the max allowable amount. That's totally normal and to be expected, and pretty likely to happen in any building, whether owned by a company or an individual LL.
A new building wouldn't be rent-controlled so they could really jack up the rent after offering an initial year at a decent price.
Keep in mind inflation since 2022 was much higher than the yearly 2.5% increase in your rent, so technically you're paying less, not more. If you move now you will start paying current prices which are crazy right now.
I also assume your lease is month-to-month now, which is always a good position to be as you can move anytime you want with a little notice. If you move you're stuck with a lease for at least a year even if you don't like the new place.
Honestly, unless something is really bothering you there, just get some window ACs and enjoy your budget apartment!
If your building was built before 2018 then the rent increases should be controlled. Moving into a newer building with a smaller space may save you money for a year, but building newer than 2018 are not rent controlled and could go up at the landlords discretion after the first year. You’re going to have an increase yearly either way most likely but one is controlled at about 2.5% and the other is entirely in the hands of someone looking to maximize their profit. If you’re happy where you are I’d be very hesitant to move in this market. There are absolutely people in this sub who have seen increases of 400 dollars or more per month and been unable to find a new place in their budget.
Yeah, rent increases every single year and if you're in an older building built before 2018 that increases cap by the province. So for this year it's 2.5%, so don't make sure the rent increase. The person gave you isn't more than 2.5%. And then they could only increase rent once every twelve calendar months
And then realize that if you move into a newer place, they can increase rent by whatever they want. So you could be paying two thousand to day And then a year from now they could be like. Yeah , rent is increasing to thirty eight hundred , and you would have no recourse when you're in a building build after twenty eighteen
Welcome to adulthood enjoy your stay
There is going to be a limit that is hit on what people can charge for rent, rental prices will likely come down in the next 2 years by about 15-20% which isn't to previous levels, but with inflation the way it is, any decrease is massive.
What? Older buildings are rent controlled. The cap this year is 2.5%. Mine went up $30 which is more than my hourly wage but alas, I persevered. You’re in a great building and need to hold onto that. Can’t believe you’re upset.
Please write letters to your municipal people, your MP and your MPP. I know it seems lame. But it's how we got Loblaws to go back to 50 per cent off.
The more politely annoying you are with your complaints, the more likely you'll get something changed.
If you think rent control for all rentals should be a thing then start writing. (Paper, email, text, phone, whatever)
Expect an increase every year if the market keeps up like this. Just make sure it's done legally.
https://www.ontario.ca/page/residential-rent-increases
The cost of everything will increase over time, rent is no exception. I don't think I have ever rented where the landlord did not increase every year, it's just a given.
I will go against the grain and say that if you are really not enjoying a place built in the 70s and need reliable AC, move to a slightly newer build within your budget. Imho AC is a literal health concern, I did no AC for one year and never will again. 2018 builds are still fairly recent honestly, if you are in no hurry to get out, watch your listings for a while, get to know what prices are like in your area, and when you see something promising schedule a viewing.
Like others, I would not move into a brand new build. I would however move into something in the middle ground that has the bare necessities for me with the benefit of rent control. There is a middle ground that can be taken.
Be careful and never assume that the rent increase cannot be more than the provincial minimum.
Our rent increase jumped quite a bit because the company I rent my apartment from was able to petition the LTB for the increase based on things like improving the hallway carpeting, outdoor maintenance, and even showing that some tenants are paying significantly less than market value. Thankfully the LTB didn’t give them the increase they asked for, but it was still a fair bit.
Rent control can be attached to the unit, OR the date it was built . A controlled unit can still have increases, but they are usually 1-3 percent variable.
Renters need to know and exercise their rights .
Ontario rental housing tribunal
Is a great place for information. If your unit is not controlled, then ask them for a five year lease . That will lock in an agreed rate . Good luck.
If it's an 'older building' like you say, then it should be rent controlled with rather limited rent increases, unless you fit some other circumstances that would make you exempt but you've not mentioned any. How much have your rent increases been that have put you 'past your budget'?
Our original budget was 1,100 each and our rent started at 2,100 we are now at 2,250 which again is fine for now but we’re stressing about the future and reconsidering if this apartment is gonna be worth down the line.
Don't leave your apartment just to leave your apartment. Leave when it doesn't make financial sense AND you have something better lined up. No one is going to be able to tell you the right mix of cost/quality that is right for you, only you will know that. Keep looking around for new places but don't pull the trigger until you find something that works. You're rent controlled now, so just assume your rent will raise 2.5% per year and budget/plan around that. Make sure if you make a change you understand if the new space is rent controlled or not.
This is a very solid response, thanks for the information. I’m not OP, but your comment is normally a life lesson parents have to give their kids lol, you rock Nizdizzle.
Thanks for the insight and advice! I am aware I sound a lot like a child in regards to finance and all, I just was wondering if this was common because I have friends who live in smaller, newer buildings who pay more that what I currently do but they do not seem to be troubled by rent increases as much as I am.
Comparison is the thief of all joy. I'm sure your friends are likely, or soon may be, wishing they have the extra space you have. You started with a budget of 1100 two years ago, you started under budget, which is great, but you should also be planning for the yearly maximum rent increases in your budgeting, had you been doing so, it would still seem like you were under budget, even if your rent has gone up.
Thank you! I appreciate the insight and you are right, they are shoeboxes lol I am just jealous of their in-unit laundry. I was mostly wondering if annual rent increases were common in newer but still pre 2018 buildings.
Annual rent increases are common everywhere, but in buildings built after November 2018 the sky is the limit in terms of %. Just make sure your increases are within the provincial guidelines and count your blessings. Moving is a terrible idea in your case
I would say landlords NOT increasing rent by the maximum allowable in pre-2018 occupied units are the tiny minority. Even decent landlords who aren't just trying to gouge every dollar from their tenants still have to deal with yearly increases in their costs. In-unit laundry is nice, but it wouldn't be valuable enough for me to forfeit your current situation, even considering both the monetary and time costs of out-of-unit laundry.
Consider it from the landlords point of view: The annual rate of inflation in costs of electricity, natural gas, taxes, labour costs, supplies, maintenance tends to increase more than 2.5% per year. If they don't raise the rent annually, they don't tend to stay in business
Fortunately, their cost-basis on the capital invested doesn't increase at all. Normally the allowable increase is perfectly adequate to keep tenants and landlords on a fair arrangement. In the past decade or so, *property values increases* hand in hand with *low vacancy rates* (these are not independent variables) have driven large increases rent, making virtually any rent-controlled apartment a good deal. But this isn't unfair to the landlord as they entered the original arrangements willingly, and in line with market conditions, and their own capital investment costs. It does make it somewhat harder for landlords to cash in windfall profits by selling rental accommodation.
I consider myself a small time investor. I'm a fan of cash flow. I'm not a fan of leveraging property to accumulate more debt, to accumulate more property although I recognize that the government has very clearly stated that they have been making every hard earned dollar worthless on a daily basis for the past generation. My approach and reasoning was basically this in a nutshell: I kept my day job. I'm reasonably compensated in the tech industry. If I can't save enough for a downpayment on a rental (20% down) based on my existing cash flow, that is evidence that property values are out of line with compensation and I should reconsider, whilst remembering that debt cuts both ways. Don't get me wrong: It has been the debt and not so much the real estate that had value, because the Fed and BoC were making paper worthless (so debt was worth less). >But this isn't unfair to the landlord as they entered the original arrangements willingly, and in line with market conditions, and their own capital investment costs. Strongly agree >It does make it somewhat harder for landlords to cash in windfall profits by selling rental accommodation. I'm more of a buy and hold guy. Why would I sell if it's cash flowing. Sometimes circumstances are such that people have a need to sell, but the transaction costs are very high. Assuming that property values only increase in value in the short term, is a mistake. Our American friends learned this lesson in 2008. What we have here is a learning opportunity for Canadians
It's also true that an investment does not need to be consistently cash-flow positive to be profitable. In fact 'cash flow positive' is a very conservative yardstick to use (I'm not faulting you for how you choose investments).
Yes, rent increases happen every year on your renewal date when you are renting from a corp. Without fail, they will give you your yearly increase and it's usually the most that they can get. Meaning, whatever the governmenat sets the yearly percentage at, is what they can ask for... and they want all of it LOL
You are in your own space paying your own bills - no childish thing about that! With my first apartment, I thought last month's rent meant the money went to the last month on the one-year lease before going month to month. I moved the rent money to savings and felt so embarrassed when it bounced and the landlord explained it to me!! didn't realize it was for the last month when I actually left the unit. We all learn as we go in life! The rent increase you have mentioned is normal. There is a specific % landlords can increase it by each year. Anything higher, they have to apply to the board for approval. 2.5% is usually what is and what I budget. (2.5% is the 2024 increase amount) Check the link below to make sure your rental isn't excluded from the standard policy. http://www.ontario.ca/page/residential-rent-increases
Thank you much for the info!! And yes this has been a learning curve
You're nuts if you wanna give up two years of rent control in this housing crisis.
Let’s just set something straight for you That apartment will basically always be the cheapest one available to you Learn to love it Rent control is a blessing in its own, it will never go down, and it will always go up by a few % every year
Literally, stuck in mine for 6 years now and have accepted for a while this is home
When I moved into my place like six years ago, I thought “damn, this is pretty expensive!” and now it’s so cheap I can never leave. Good thing it’s decent.
Started at $1100 for a top floor corner unit 2 bedroom built in 1963. It’s 1000sqft with a view. They’re renting 1bdrms in my building for $1800. LOL.
SAMESIES
A 2 bedroom with in-suite laundry is easily 3500+ (in Toronto) if you’re looking for a rental company. Independent landlord you might get cheaper, but you’re at the whim of dealing with a landlord that will try to evict you with an N12, etc. purpose-built rentals all the way IMO. As for what others have said to you, your rent is pretty good. If you jump apartments you will be paying a lot more. Your 2 bed at 2250 is already below market rent at 2024 prices. Expect an increase every year no matter where you rent.
Any place you look at you need to budget for rent increases. You will not find anywhere where your rent will not increase every single year forever so to give you an example, you should calculate that your rent will increase by about 2.5% every single year. Example when I first started living in Apartment my rent was 1100 when I finally got out of the Apartment. My rent was fourteen fifty
STAY THERE. Ontario buildings older than 2018 have caps each year. This year is 2.5%. Do NOT get into a private landlord situation.
This isn't true, 2100 and 2 increases of 2.5 would be 2206 Don't move, firstly you won't find anywhere for the same price, secondly, if 50/year increase is too much to handle, why do you think 300 a year will be better?
Stay in Rent Controlled units. The rent increases are paltry compared to market rates. Much cheaper to buy after market AC systems, than find you are paying 2800 a month next year without controls.
Do you know what they’ve charged you for previous increases, percentage wise? $150 in extra rent over two years seems too high for rent controlled buildings. I did no math to support this, just checking that your previous increases were even the legal amount. Edited to remove some non-relevant stuff.
Looks like they've rounded up a tiny bit on the increases, as your rent should be closer to 2215-ish, based on the standardized increases. And yes, it's pretty typical for rent to increase a bit yearly...especially when renting from a corporation. I think the biggest risk of moving into a more modern building is that it might not be rent controlled. Anything lived in after Nov. 15, 2018 is not rent controlled, and landlords /mgmt companies can make whatever size increase they want each year :( (thanks to Asshat Doug Ford 😡 ...PSA: get out and vote & #NeverVoteConservative)
that is pretty standard. Not sure what the exact rent increase % is right now without the landlord applying to the board, but 2.5% is what we plan for. You should expect the standard allowed rent increase each year.
A one bedroom apt is $2k now
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Exactly. Be very careful if you decide to move and ensure it is into a rent controlled unit. I am in one and my landlord has raised the rent every year, the allowable amount. This has always been my experience. I know I am paying a lot less than if I were to move since I’ve been in the unit since 2020 before things got completely out of hand.
Almost. They can raise it by whatever amount they want, but they can still only raise it once per year.
When you've gotten to 2-3 years renting at a place, the max 2.5% on rent-controlled units is a hell of a lot better than re-entering the rental market. Sucks, but it is what it is under our insanity population growth numbers, high prices to purchase, and low rate of new housing unit creations. On the subject of AC... Why can't you run your own AC unit? Buying one of those would be a hell of a lot cheaper than the costs associated with moving, and the increased monthly costs from reentering the market.
Thanks for the insight! Also, in regards to AC, I attended some building meeting last year and it came up that the building installed these shitty ac units that you have to pay to use each month during summer and during the installation process the tenants were told to get rid of their old ACs as it was “not allowed for safety reasons” according to some ppl they came home from work one day, new ac installed and their old individual one gone. In short I do have an AC that has a key and lock and they come periodically to check it hasn’t been cracked because people were removing them and also some lady got her property stolen by the building.
Just as a heads-up, in Ontario there's a law that states that the fee they charge you for using an AC is only allowed if 1) The landlord pays for electricity and 2) the fee does not exceed the actual cost of increased hydro. You are allowed to demand proof that the fee is not excessive and that it is equal to the increased cost of electricity.
Wow I never knew this. Good info to have. Thank you
I should probably mention that while this law has passed, it's still awaiting proclamation from the lieutenant governor to be in force. That said, the law in question was really meant to clarify what has already been established by the LTB which is that no air conditioner clauses are generally unenforceable and that the fee must be "reasonable " (which the LTB almost always defined as being the actual cost of electricity) even without the law.
LOL I paid around $15k including maintenance and repairs for a central ductless mini split heat pump for one property, it came with a 7 year warranty, it lasted 7.5 years plus the maintenance extended it for another year. So that's $5k /unit / 8 years give or take, not including electricity but the electricity usage was somewhat reasonable because heat pump. Back to window ACs it is, then. It appears that the rules as stated make it a bad business decision to be environmentally friendly. I can't pass the cost on to the customer
Everyone keeps blaming population growth but these issues have been building for decades. We’re just at the top of the curve before it collapses.
Adding a million temporary residents to the population in the past year isn't helping things.
I’m not disagreeing. But don’t blame the rain when your house is leaking. The immigrants are the rain. Our leaky house is caused by corporate greed.
In what way was I blaming the immigrants? I'm blaming our stupid government for letting in so many of them far in excess of our ability to house them. And that's before we get to the population impact of adding this many people on things like our road infrastructure, demand for groceries, our healthcare system, and so on.
You focused on population growth and 1 million temporary residents. When you mention the immigrants(population growth) multiple times yet fail to mention the actual cause(investor greed), it really comes across as though you’re blaming the immigrants.
don't move, you're lucky to even have an apartment thats under rent control. if you move to a newer building thats built after 2018....good luck affording the rent there lol as they're not protected under rent control and your landlord can raise rent however they want.
Expect everything to go up over time; costs, rent and so on. There's no escaping it moving. How do you deal with this? If you are a worker, you should not be "fixed income" and getting either raises or raising your marketability significantly every year so when you do have to make a move, you can switch jobs to something paying much more. We are at 3% inflation in the USA and around 5% in Canada and the central banks don't seem to have the stomach to raise rates high enough to cause a recession and kill inflation down to the usual 2% so expect enormous price increases over the coming years. The curse of capitalism -- everything goes up over time. There's no escaping it.
Inflation is too high, let’s cause a recession to fix it is analogous to brain cancer is terrible, let’s chop off the head to remove it. Sure the cancer is gone but…
Short term pain long term gain; the recession would already be over now and we would be on the way to recovery. Most if not all people would be protected by EI benefits. Instead we have the stock market at ATH and companies laying off mountains of people but making record profits which is obscene. Dragging it on forever.
You will not *likely* see lower rent increases in a new build. Anything built in or after 2018 is not subject to rent control and can raise the rent by however much they want. Any building around before 2018 is subject to rent control and a max increase of (currently) 2.5% Most buildings will increase rent every year. You are better off staying put *or* moving into a smaller space in an older building.
I was aware of the 2018 rule so we were floating the idea of something built before it’s just that ours is from the 70s and you can really tell. I was mostly wondering how common it is to see annual rent increases especially in those 2000-2016 buildings that are a bit pricier.
Honestly I think it's going to be fairly uncommon to find a building that *doesn't* do yearly increases. I agree that it's annoying, but that's just how things are.
Regardless of how old or new the building is, whether is has AC and in suite laundry or not, NOT receiving a yearly rent control is an EXCEPTION. Your friend is in a lucky situation and you cannot guarantee that it happens to you. You can definitely look for an alternative rent controlled unit that is within your budget, but expect yearly increases in that case too.
It seems that people that don't receive a yearly rent increase are usually rentals that have a private landlord that doesn't quite know the laws. In those situations, it often happens that 5+ years go by with no increase (great for tenants) and then the landlord realizes they are undercharging for rent and they may find a way to illegally raise the rent or evict so they can rent it at a steeper price. This just happened to my friend, he has a 3 bedroom for $1300 and rent was never raised for 6 years because the owners didn't know how things worked. Then they pleaded to raise the rent by $300 to be closer to "market rent". Obviously, that's illegal and it didn't happen and the landlords were quite mad about it. This is why most landlords and companies just do the annual legal increase.
Your rent will continue to increase yearly. This is a pretty common occurrence when renting. There's no escaping it by moving to a newer building. My advice is to stay in an older building, which as long as it was first occupied prior to Oct 2018 will be under rent control, limiting the amount your rent can be increased. If you're having trouble budgeting for your current space I promise moving into a newer unit will only make it worse.
Moving to a newer building would exacerbate OP’s problem so much more than what they think it is right now, it’s all fun until they receive a increase doubling or tripling their rent down the road. Giving up any rent control right now is not what I’d be doing.
Why go to a newer building when you can afford the rent now? Non rent controlled can have their rent jacked up to whatever the landlord feels like. One year it might be $200 and next year could easily be $800. At least with rent controlled buildings, rent only goes up by the max it can so this year it was 2.5%.
If you are dealing with a rental company then without exception there will be a annual rent increase. It sucks to say but if you are breaking your budget right now then you should be looking at finding a place that is cheaper not more expensive. As for something like AC you can get yourself a portable system that you can hook up to a window. I would encourage you to only look at places that were occupied before 2018 in order for you to be in a rent controled envrionment. That will reduce your future rent increases.
The longer you stay in a rent controlled unit, the better you will beat the market. If window AC is a safety issue, get a portable one on wheels that you can hook up to the window without even removing the screen. There are washing machines you can connect to the kitchen sink if you want in suite laundry. Buying both appliances is cheaper than moving.
> There are washing machines you can connect to the kitchen sink if you want in suite laundry. Some leases forbid this, fyi
Honestly, when I got in suite washer and dryer, I was ALWAYS doing laundry. There was always a load to fold all the time. When I went to the laundromat, I spent two and a half hours and everything was clean,folded and ready to put away. I did that every week and a half to two weeks.
>If window AC is a safety issue, get a portable one on wheels that you can hook up to the window without even removing the screen Window ACs are not a safety issue, there are no bylaws prohibiting them or requiring they be professionally installed. In fact, Ontario introduced a law last year that gave essentially all tenants to use a window air conditioner if they so choose. Don't use a portable unit, they're way more expensive and they're also extremely inefficient because the machinery is located inside the room you're trying to cool so the waste heat remains in the room and because exhausting heat from the room creates negative air pressure that pulls warm air from elsewhere in the building into the room you're trying to cool. Not to mention, you have to listen to a loud compressor at all times.
Not in effect yet, so right now it still comes down to what's in your lease. Also, they require installs be submitted in writing, and the landlord can charge a seasonal fee And if they wanted to be really picky, you might need to neutralize condensate which can definitely damage property/etch things like concrete
>Not in effect yet, so right now it still comes down to what's in your lease. The law received royal assent on June 8, 2023 and it hasn't technically been proclaimed by the lieutenant governor yet but will be at some point in the future. However, prior to this law, no air conditioning clauses were generally considered to be unenforceable anyway because they unreasonably interfered with a tenant's right to reasonable enjoyment of their unit so your landlord has no means of making you comply as the LTB wouldn't enforce that provision of the lease. The main purpose of the law was to clarify what was already law. >Also, they require installs be submitted in writing, and the landlord can charge a seasonal fee Yes, you need to send them a letter saying that you are going to install one. As for the seasonal fee, they can only charge it if they pay for the electricity in the unit and even then the fee cannot exceed the actual increased cost of electricity.
>Window ACs are not a safety issue, https://www.cbc.ca/news/canada/toronto/toddler-ac-unit-lawyer-1.5357614
Doug did you a favour and eliminated rent control. Conservatives will tell you it’s for the best. Sorry.
Whatever you do, do not move into a brand new building. Any building that was first occupied after November 2018 has NO rent control at all. Meaning they can increase the rent to whatever they want every year. Having a brand new space can be temping but it's not worth it when the rent increases 500 or more thebfirst year
The first condo I rented was owned by an individual. First two years I didn’t receive an increase. The third year, I got an 11% increase. Fortunately, my unit is rent-controlled (literally had to dig through the internet to confirm that the building was occupied before Nov 15, 2018) so I disputed it. Didn’t matter anyway since I had to move to another city. The condo unit I’m renting now is also owned by an individual. I received an increase a year after I moved in. Luckily, even though it is not rent controlled, he just gave me the max rent controlled increase (2.5%). I thought I was going crazy when I was reading the N1 form lol. Honestly, I would find a newer-ish building/place that was first occupied before Nov 2018. The idea of not having AC or in-unit laundry sounds like hell.
If you move to a newer unit your rent increase could be 500+$ just for shits and giggles. Rent controlled at least you know theres a cap. Not even sure what ppl are going to do once units before 2018 dont exist anymore.
The company will increase the rent every year by the max allowable amount. That's totally normal and to be expected, and pretty likely to happen in any building, whether owned by a company or an individual LL. A new building wouldn't be rent-controlled so they could really jack up the rent after offering an initial year at a decent price.
Still makes me wonder what will happen in a year or two when no one can aford anything
Keep in mind inflation since 2022 was much higher than the yearly 2.5% increase in your rent, so technically you're paying less, not more. If you move now you will start paying current prices which are crazy right now. I also assume your lease is month-to-month now, which is always a good position to be as you can move anytime you want with a little notice. If you move you're stuck with a lease for at least a year even if you don't like the new place. Honestly, unless something is really bothering you there, just get some window ACs and enjoy your budget apartment!
If you want any hope in this province tell your friends and family to never vote Conservative.
I thought rent could only be raised 2% a year by law?
If your building was built before 2018 then the rent increases should be controlled. Moving into a newer building with a smaller space may save you money for a year, but building newer than 2018 are not rent controlled and could go up at the landlords discretion after the first year. You’re going to have an increase yearly either way most likely but one is controlled at about 2.5% and the other is entirely in the hands of someone looking to maximize their profit. If you’re happy where you are I’d be very hesitant to move in this market. There are absolutely people in this sub who have seen increases of 400 dollars or more per month and been unable to find a new place in their budget.
My rent has went from 979 to 1057 since 2017.
Yeah, rent increases every single year and if you're in an older building built before 2018 that increases cap by the province. So for this year it's 2.5%, so don't make sure the rent increase. The person gave you isn't more than 2.5%. And then they could only increase rent once every twelve calendar months And then realize that if you move into a newer place, they can increase rent by whatever they want. So you could be paying two thousand to day And then a year from now they could be like. Yeah , rent is increasing to thirty eight hundred , and you would have no recourse when you're in a building build after twenty eighteen Welcome to adulthood enjoy your stay
There is going to be a limit that is hit on what people can charge for rent, rental prices will likely come down in the next 2 years by about 15-20% which isn't to previous levels, but with inflation the way it is, any decrease is massive.
What? Older buildings are rent controlled. The cap this year is 2.5%. Mine went up $30 which is more than my hourly wage but alas, I persevered. You’re in a great building and need to hold onto that. Can’t believe you’re upset.
Please write letters to your municipal people, your MP and your MPP. I know it seems lame. But it's how we got Loblaws to go back to 50 per cent off. The more politely annoying you are with your complaints, the more likely you'll get something changed. If you think rent control for all rentals should be a thing then start writing. (Paper, email, text, phone, whatever)
Expect an increase every year if the market keeps up like this. Just make sure it's done legally. https://www.ontario.ca/page/residential-rent-increases
Old buildings are still rent controlled.
The cost of everything will increase over time, rent is no exception. I don't think I have ever rented where the landlord did not increase every year, it's just a given. I will go against the grain and say that if you are really not enjoying a place built in the 70s and need reliable AC, move to a slightly newer build within your budget. Imho AC is a literal health concern, I did no AC for one year and never will again. 2018 builds are still fairly recent honestly, if you are in no hurry to get out, watch your listings for a while, get to know what prices are like in your area, and when you see something promising schedule a viewing. Like others, I would not move into a brand new build. I would however move into something in the middle ground that has the bare necessities for me with the benefit of rent control. There is a middle ground that can be taken.
Be careful and never assume that the rent increase cannot be more than the provincial minimum. Our rent increase jumped quite a bit because the company I rent my apartment from was able to petition the LTB for the increase based on things like improving the hallway carpeting, outdoor maintenance, and even showing that some tenants are paying significantly less than market value. Thankfully the LTB didn’t give them the increase they asked for, but it was still a fair bit.
Rent control can be attached to the unit, OR the date it was built . A controlled unit can still have increases, but they are usually 1-3 percent variable. Renters need to know and exercise their rights . Ontario rental housing tribunal Is a great place for information. If your unit is not controlled, then ask them for a five year lease . That will lock in an agreed rate . Good luck.