Toronto couple shocked when rent increases 25 per cent
There was a rent freeze in Ontario last year due to the pandemic, but it expired on Jan. 1 and now some landlords are raising rent by as much as 25 per cent.
“I was shocked. I thought it was illegal and I started texting my friends and family to ask ‘can they do this?’" said Jake Myhal of Toronto.
Myhal and Holly MacLeod moved into a Toronto condominium unit in May 2021 and signed a one-year lease.
The allowable rent control guideline increase for this year is 1.2 per cent, but that does not apply to newer buildings constructed after November 2018.
The couple’s unit is in a newer building and they were shocked when they were told their rent will go from $2,000 to $2,500 per month, a 25 per cent increase.
"I think we were expecting a five per cent or 10 per cent increase, but a 25 per cent increase is quite jarring," said MacLeod.
To encourage more rental housing and developments in the province, the Ontario government changed rent control guidelines so that new buildings would not have to adhere to rent controls.
The owners of these newer rental units couldn't raise rent last year due to the pandemic, but now they can.
"Rents have jumped dramatically and this has led to 25 per cent increases in a lot of places," said Mark Weisleder, a real estate expert and lawyer with RealEstateLawyers.ca LLP.
Weisleder said the new rules were to encourage development and, according to Ontario’s Ministry of Municipal Affairs and Housing, new buildings and new basement apartments occupied for the first time for residential purposes after November 15, 2018 are exempt from rent control.
Weisleder said anyone moving into a new building should ask when it was built and may want to add a clause to their lease.
“If you do rent in a brand new building, have them put a clause in that the most the landlord can raise your rent is two or three per cent per year to protect yourself from these large increases,” Weisleder said.
Myhal and MacLeod said they will move out of their unit rather than pay a 25 per cent increase.
“If we would have known they could raise the rent this much, we would have definitely considered an older building," Myhal said.
Even in newer buildings, Weisleder explained that the new rent control rules cannot be abused and should still be in line with current market values.
In rent-controlled buildings rents can only go up more than 1.2 per cent if the landlord gets approval from the Landlord and Tenant Board.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6976926.1721883767!/httpImage/image.png_gen/derivatives/landscape_800/image.png)
LIVE SOON Extent of Jasper wildfire damage still unknown; Alberta Wildfire hosting update
Officials are waiting to learn Thursday morning the extent of wildfire damage in the Jasper townsite of Jasper National Park, which flames began to eat away at the night before.
WATCH LIVE Jasper wildfire burns buildings, while poor air quality forces some fire crews out
Prime Minister Justin Trudeau announced on social media that Ottawa has approved Alberta's request for federal assistance after a fast-moving wildfire hit Jasper National Park and its townsite late Wednesday.
Jennifer Aniston criticizes JD Vance for 'childless cat ladies' remarks: 'I pray that your daughter is fortunate enough to bear children'
Jennifer Aniston is criticizing JD Vance for comments he made in his past about women without children.
Prince William made $42 million from his newly inherited estate last year, reports show
Newly released financial reports show that William, the Prince of Wales, drew a salary of $42.1 million last fiscal year, his first since inheriting the vast and lucrative Duchy of Cornwall.
Canadian women's soccer team staffer given suspended prison sentence over drone incident, prosecutor says
A Canada women's soccer team staffer has been given an eight-month suspended prison sentence after flying a drone to film the closed-door training session of the New Zealand team on Monday, the prosecutor's office said in a statement.
Spicy dispute over the origins of Flamin' Hot Cheetos winds up in court
A former PepsiCo executive is suing the company, saying it destroyed his career after questioning his claim that he invented the popular flavor of Cheetos snacks.
NASA says no return date yet for astronauts and Boeing capsule at space station
Already more than a month late getting back, two NASA astronauts will remain at the International Space Station until engineers finish working on problems plaguing their Boeing capsule, officials said Thursday.
WATCH LIVE 'Sick to my stomach': People grieve Jasper National Park by sharing favourite photos
As an out-of-control wildfire roared through Alberta’s famed Jasper National Park and its townsite late Wednesday, many are fearing the worst as officials warned of 'significant loss' within the area.
Melania Trump to tell her story in memoir, 'Melania,' scheduled for this fall
Former first lady Melania Trump has a memoir coming out this fall, 'Melania,' billed by her office as 'a powerful and inspiring story of a woman who has carved her own path, overcome adversity and defined personal excellence.' It's the first memoir by Trump, who has been mostly absent as her husband, former U.S. President Donald Trump, seeks to return to the White House.