Useful Life Cycle of Above Guideline Increases

Useful Life Cycle of Above Guideline Increases

Did you know that you have a right to reduce your rent many years following AGI (above guideline rent increase) orders? Many tenants are unaware of this right that you have opportunity, and landlords almost certainly never tell you about it or and won't automatically reduce your rent.

Every AGI rent order issued by the Landlord and Tenant Board is given indicates something called a Weighted Useful Life, measured in years. At the end of this time period (usually 10-20 years depending on the category of work that was involved), tenants who were issued an order for the AGI can apply to their landlord to have their rent reduced by the amount of the AGI, assuming you are still living in the same unit.

For example, if an AGI of 2.0% was awarded to the landlord for Capital Expenditures with a Weighted Useful Life of 17 years effective March 1, 2020, then, on March 1 2037, that tenant can have its then current rent reduced by 2.0%.

As we mentioned above, unfortunately it is up to you, the tenant, to keep track of these dates and amounts. That is why we always recommend you keep your paper copy of the order you receive in the mail from the landlord and tenant board. We have created a spreadsheet of weighted useful life dates coming up in future years, so that you can see if any apply to you.

If they do, you can opt to present the landlord with a letter in writing at that time letting them know you plan to reduce your rent, and explaining the reasoning why. Quote the file # included in the spreadsheet we have provided. If you do have a copy of the written order as proof, we recommend making a photocopy and including that with your letter at that time.

Appendix:

This is information from the Landlord and Tenant Board website with an explanation. You may also choose to quote this in your letter to the landlord or if they dispute your claim.

Rent decrease

If the tenant who is subject to an AGI order continues to occupy the rental unit when the weighted useful life has ended, the landlord must reduce the rent by the percentage increase that is attributed to the capital expenditure on the date in the LTB order. This is also specified in the order issued by the LTB. The regulation sets the rules for calculating the date the rent decrease can take place.

Schedule of Useful Life AGI Rent Reductions (as of Mar. 16, 2023)

For best results, view on a computer.

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