Your market will likely bear a rent increase, but don't rush to make that hike just yet. In this Investor Insight, CREW lays out what exactly is expected of investors during that process and what they can do to keep angry tenants from raising the roof.
Video transcript below:
Jemima Codrington: General maintenance and inflation can cause the need for a rent increase. But how can landlords go about increasing rent without driving away good tenants. Hi, I am Jemima Codrington and welcome to this week’s episode of Crew TV.
So you want to raise the rent on your property, how do you go about doing it and when?
Cindy Wennerstrom, President, Oro Properties
Cindy Wennerstrom: A landlord can raise the rent of their property and rental unit only once in a calendar year with that particular tenant. So if you’ve been living in a space for 12 months, expect to get a letter about 3 months prior to the end of your lease from your landlord stating that it’s time for him to increase your rent. You could also increase rent if you did renovation, but that’s a whole another process that you have to apply to the Landlord and Tenant Board direct.
What are the formal procedures for increasing rent?
Cindy Wennerstrom: The formal procedure to be followed when raising rent for tenants is to actually give them a letter in writing at least 90 days prior to the end of their lease that you intend to increase their rent by what the government allows it to increase for that year. Along with that letter should be a signed form by you, that you can provide to the tenant, I think it’s Form N1 and that tells the tenant exactly what their rental increase will be. They have 30 days to let you know if they are going to accept the increase or move out.