Rent Increase Notification Document

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rental inspection document

Rent Increase Notification

Landlords notify tenants of increases in rent by providing them with a document that outlines the date of the increase and the proposed amount. Canada has strict laws in every jurisdiction protecting tenants from unwarranted rental increases.  Even for minor rental increases, the tenant must be notified.  

Canadian law requires landlords to provide a tenant with adequate advance notice of a rent increase or some other material change to the tenancy. This is typically done by written document requiring the signature of both landlord and tenant, but can also be done by delivering a letter for which there is either no response from the recipient or an acknowledgment that they have received it. The purpose of this advance notification is to allow tenants sufficient time for consultation and planning as well as protecting their human rights in general given that they cannot be evicted without being given the opportunity to first negotiate new terms. 

Who Should Be Included On A Rental Increase Notification?

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Names of all the parties who are on the lease

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Details about the current lease or rental amount

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Write the increase in terms of a percentage and dollar amount

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Note the new total for the lease or rental amount per month

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Although not required, each party should sign and date copies of the rental increase documents

How much can I increase my rent?

When deciding how much to increase your rent, take into consideration many factors.

Think about the quality of your tenants before making that decision.  A good tenant that pays on time and maintains a property is valuable to any landlord.  Sure you’re making less per month but the property is rented and requires little management.  Consider the tenure of your tenant and think about how long your property will stay vacant.

Municipal and provincial regulations are most often going to dictate the amount you can legally raise rents.  The amounts are usually 1-3% depending on where your property is located.  Because of the regulations involved, it’s always wise to get professional advice before sending out rental increase notifications.

How much notice should I provide for a rental increase?

Provide as much notice as possible when planning on increasing rents. Always check with local regulations about specifics time frames.  In most places in Canada, the law requires 2-6 months of notice before an increase can be implemented.  

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Rental Inspeciton Documents FAQ

Do rental increase notices need to be signed?

Because of the regulations involved, rental increases are often such small increases, the tenant does not need to agree, but only be notified of the increase. 

Is there a rental increase freeze because of Covid?

Yes, most provinces have implemented a rental freeze.  For example, Ontario is extending it until December 2021.

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