Unlimited Rent Increases for Ontario Exempt Rentals

Under Ontario law, the limit on annual rent increases (3.1% for 2011) does not apply to most newer condo buildings (or buildings built after 1991).

For the exact wording of the exemption see sec 6.2 of the Residential Tenancies Act.

In exempt units landlords can increase the rent to whatever the market will bear after 12 months have elapsed since the last increase (or move in).

The landlord even increase the rent beyond market to facilitate obtaining possession for sale or otherwise.

The other restrictions on Ontario rent increases still apply and special forms need to be used.

It is particularly important to adhere to these rules as the tenant is more likely to challenge an above guideline increase.

If you would like more information on the exemption or how to take optimumum advantage of Ontario's rent regulations in your real estate investments please contact me.

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