An increase of 3.1% translates to about $25 more for an apartment renting for $800 a month in 2011.
The guideline was below the hopes of the Federation of Rental-housing Providers of Ontario. Vince Brescia, the organization’s president, said the limit failed to account for inflation and the impact of HST, according to the Ottawa Citizen.
He told the paper that rental housing providers are going to experience more than 70% increase in costs next year due to inflation and HST increases, and those costs will continue to accelerate in coming years.
Ontario’s annual Rent Increase Guideline currently is based on the Ontario Consumer Price Index (CPI), which is a measure of inflation calculated monthly by Statistics Canada. It will apply to rent increases between Jan. 1 and Dec. 31, 2012.
The average yearly increase from 2004 to 2011 was 1.89%, whereas the average yearly increase from 1993 to 2003 was 3.17%.
A landlord can apply for a rent increase above the guideline, but it must be for specific reasons, such as “extraordinary” increases in taxes and/or utilities or significant renovations, repairs, replacements, or additions to their building or individual units.
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