Information About Lease Renewals

For tenants with units under rent control:

There continues to be a backlog going back to 2018 of Above Guideline Increase (AGI) Applications at the Landlord and Tenant Board. This means that any Notice of Rent Increase N1 you receive could be misleading.

If your Notice of Rent Increase indicates that "This rent increase is less than or equal to the rent increase guideline and does not need approval by an order under the Residential Tenancies Act 2006" you should not necessarily accept that you are obliged to pay the amount indicated.

If you paid only the guideline increase of 1.8% when you renewed your lease in 2019 (as the High Park Tenants Association advised) and are waiting until the Landlord and Tenant Board issues its Rent Order to pay a retroactive lump sump adjustment, the landlord may have adjusted your Legal Rent by the amount of the AGI increase previously applied for but not yet approved.

While the landlord is technically complying with the notice regulations of the Residential Tenancies Act, the rent increase request could result in a renewal rent well in excess of the 2.2% 2020 Rent Increase Guideline over your current legal rent.

Hypothetical Example:

Tenant's Obligation

Tenant's 2019 Legal Rent                   $2,000.00

Required 2.2% 2020 Guideline Increase                 44.00

New 2020 Renewal Legal Rent                                                                 $2,044.00 (2.2%)

Landlord's Notice of Rent Increase N1 Request

Tenant's 2019 Legal Rent                   $2,000.00

Landlord's Still Unapproved 2018 3.0% AGI Application                                                      60.00

Unapproved Rent Landlord May Use for N1 Calculation                                                 2,060.00

2.2% 2020 Guideline Increase on Unapproved Rent                                                                45.32

Landlord's Notice of Rent Increase N1 Request                                                                 $2,105.32  (5.3%)

Regardless of the amount indicated in the Notice of Rent Increase N1 you receive from your landlord, you are under no obligation to pay more than the Rent Increase Guideline above your current Legal Rent. For leases renewing in 2020, the Rent Increase Guideline is 2.2%. It was 1.8% for leases renewing in 2018 and 2019.

It is up to you to keep track of your Legal Rent and to ensure that you are aware of the minimum rent increase you are obligated to pay. If you opt to pay only the obligated minimum rent increase, you must remember that a retroactive lump sum rent deficiency payment will likely be required when the Landlord and Tenant Board issues its Above Guideline Increase Rent Order for the outstanding application(s).