Government Announces Rent Increase Guideline of 2.1%
Today, the Government of Ontario announced the 2010 rent guideline at 2.1%. This is shocking considering the tough economic times that we are in.
The guideline is based on the average inflation for the last 12 month period. Recent reports of lower inflation gave us hope that the guideline would be lowered, not raised.
In fact, it is time for the Government to take real action to protect tenants who are weathering these tough times. A guideline of zero - or in other words - a rent freeze is the least that they can do.
The biggest single operating expense for multi residential buildings is property tax. They went up 1.3% in Toronto in 2009. Multi -res taxes increase at 1/3 the rate of homeowners, as a partial solution to the fact that we pay a much higher rate to begin with.
Smaller rental properties do not pay the higher rate.
Rents have continued to rise and the Government is sanctioning increases to large corporate landlords while individual tenants suffer.
We will be calling on the McGuinty Government to bring in relief measures for tenants. Freezing rents would be a start.