Dear Valued Customer Rent controls make it tough for landlords in Ontario to manage their income in residential properties because it prevents them from raising rents to keep pace with costs. Some have argued that rent controls prevent buildings being maintained properly, create supply shortages and infringe on the rights of small landlords from controlling their own property. Well, there may be a way to short circuit Rent Controls. To be exempt from increasing your rents from the paltry Ontario guidelines, all you simply need to do is.
Buy a New Property
According to section 6 of the residential tenancies act, units built after November 1, 1991 is exempt of section 120. Section 6 (2) part c states 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). Section 120 states 120. (1) No landlord may increase the rent charged to a tenant, or to an assignee under section 95, during the term of their tenancy by more than the guideline, except in accordance with section 126 or 127 or an agreement under section 121 or 123. 2006, c. 17, s. 120 (1). Implications: For those buying new condos, when there is a lot of supply from other investors, it may be favorable in picking the best tenant at a discounted rate and later increasing rents to market after the vacancy rates in the building go down. Thanks to Mark Weisleder for the inspiration (I am not responsible for any problems from interpretations in this newsletter) image source: wallyg