Ontario Tenants: Navigate High Rates with Rent-Controlled Units

Renters Should Look for Rent-Controlled Units Amid High Rates

With the Bank of Canada deciding to hold interest rates at 5%, the country’s real estate market is expected to remain steady. However, tenants in non-rent-controlled buildings may face a disadvantage due to possible rent increases. According to Nicki Skinner, a realtor at Bosley Real Estate, tenants need to be aware of their rental agreement details and whether their property is rent-controlled to avoid potential financial pressure.

Rent Control Rules in Ontario

In Ontario, landlords can only raise rents by a maximum of 2.5% each year for rent-controlled properties. However, this limit doesn’t apply to tenants in buildings that began housing tenants after November 15, 2018, or if a new tenant is moving into a unit. Skinner advises tenants looking to move in a high-rate environment to find out if a unit is rent-controlled.

Impact of Extended Interest Rates on Tenants

Skinner believes that an extended period of interest rates at these levels could cause some landlords to hike rents if they feel the financial pressure. As a result, tenants should be vigilant in understanding their rental agreements and determining whether their property is rent-controlled to avoid unexpected rent increases.

Advice for Tenants Amid High Rates

It’s essential for tenants to be informed about their rental agreements and the rent-control status of their property. By understanding these details, tenants can better navigate the high-rate environment and avoid potential financial pressure from rent increases. In addition, tenants should consider discussing their concerns with their landlords and negotiating rent adjustments if necessary.

Conclusion

As the Bank of Canada holds interest rates at 5%, tenants in non-rent-controlled buildings may face potential rent increases. It’s crucial for tenants to be aware of their rental agreements and rent-control status to avoid unexpected financial pressure. By staying informed and proactive, tenants can better navigate the high-rate environment and protect their financial well-being.

Orginal article: Link To Article – provided by Kansas City Realtors