Ontario recently announced rate increase of 2.5% for 2023. This is one of the biggest increases we have seen in decades. The rate increase for 2022 was 1.2%. In the last two years you have the potential to increase your rents by 3.7%.
As interest rates are increasing, it is only going to get expensive to hold rental properties. As a small landlords it is important to increase the rent when you get a chance, here are some reasons why you should consider raising the rent.
- Mortgage rates are increasing which means when you re-new your mortgage your monthly mortgages tend to increase
- I recently viewed a few properties, the price per unit is adjusted to market rate, however the rents were too low to make it worth. You do not want to be in a situation when you sell the property.
Whether you plan to increase the rent or not, you need to understand leases and your rights to increase the rent. Each province has different rules when it comes to notifying your tenant of the rent increase. Make sure to follow the guidelines and provide enough notice to your tenants.
If you are looking for a solution to notify you of such lease renewals and automatically collect rents. Come join hundreds of other Ontario landlords who use Tenantcube. Signup today.