- April 18, 2024
- Posted by: legaleseblogger
- Category: Related News
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# Message from Mom about Rent Increase
Hi all,
I recently got a message from my mom, who I split rent with, about a rent increase from our landlord. The new rent is going up to $2800 per month, as the owners are considering moving their parents in due to mortgage interest rates. Currently, the rent we pay does not cover their mortgage, so each of us would need to pay $1400.
# Concerns and Options
This sudden increase in rent has me worried. I’m not sure if I can afford this new amount, and I’m wondering if there are any options available to us in this situation. According to my mom, if we are unable to pay the increased rent, we have only 60 days to vacate the premises.
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Assume your unit is rent controlled, else they wouldn’t even have to threaten moving parents in. So the legal allowed rent increase would be 2.5% and served via an N1 with 90 days notice.
Divisional courts have ruled that if a landlord demands you pay an illegal increase or they will use unit for personal use, that is **retaliation** and the LTB would be bound to dismiss it under [RTA 83(3)(c).](https://www.ontario.ca/laws/statute/06r17#BK113) This would apply even if the parents would genuinely live there for 1 year in good faith. So it seems the landlord has given you all the evidence you need in writing, to contest any N12 served shortly afterwards. If they do serve an N12 you can even send a follow up like “so to confirm the reason your parents are moving in is because we can’t pay 2800, but if we agreed to we can stay?”
[Here is an LTB case that illustrates this,](https://www.canlii.org/en/on/onltb/doc/2021/2021canlii139827/2021canlii139827.html) with reference to binding divisional cases.
>*12. In Yundt v. Parker,* [*2014 ONSC 1805 (CanLII)*](https://www.canlii.org/en/on/onsc/doc/2014/2014onsc1805/2014onsc1805.html) *the Divisional Court found that para 83(3)(c) was applicable where raising the rent was a landlord’s ‘Plan A’ and terminating the tenancy was ‘Plan B’. In Loc Le v. O’Grady,* [*2018 ONSC 6387 (CanLII)*](https://www.canlii.org/en/on/onscdc/doc/2018/2018onsc6387/2018onsc6387.html)*, the Divisional Court found that the Board properly dismissed an application brought pursuant to section 48 of the Act based on para 83(3)(c) where there was evidence that if the tenant had agreed to an illegal rent increase she would have been allowed to continue to occupy the rental unit.*
>*13. I am satisfied on the balance of the probabilities that the Landlord delivered the N12 and commenced this application because the Tenant attempted to enforce her legal rights in the sense that she refused to agree to an illegal rent increase. In my view, the text exchanges with the property manager leave little doubt that if the Tenant had agreed to pay increased rent of $1,200.00, the N12 would not have been served and this application would not have been filed. It is my finding that whatever the intent was prior to the Landlord purchasing the rental unit, the N12 upon which this application is based was the direct result of the fact that the Tenant would not agree to pay increased rent to allow the Landlord to finance the purchase of the rental; unit from her in-laws. The Landlord admits that the Tenant was approached in an effort to increase the rent ‘to reflect the realities of the housing market’ and the cost of carrying the debt incurred to purchase the rental unit.*
Does the Nov. 15 2018 rule apply for rent control?
https://www.google.com/amp/s/www.cbc.ca/amp/1.6978670
They need to submit the proper N12 form , till then just don’t worry much. Also since he said that he wants to hike rent this will also most probably thrown out by the LTB as bad faith.
Their inability to cover the mortgage costs is not your problem. Check your province’s rent increase guidelines and go from there. There are protections and processes for this, just google it
The approved provincial rent increase for Ontario is 2.5%. Your landlord cannot raise your rent above this. Your landlord is required by law to provide **90 days notice** of a rent increase.
I find it comical that landlords like this say they cannot afford the carrying costs of their mortgage because their tenants rent is too low. But then they threaten to move in family. Are his mom and dad renters? Do they currently pay *so much more in rent* that it is worthwhile to them to move in? Is he going to charge his mom and dad $2800? Most likely not and that’s why if he does tell you and your mom to move out you have to set your boundaries on receiving the proper paperwork moving forward.
You can:
1. Decline and advise you will pay the [legal 2.5%](https://www.ontario.ca/page/residential-rent-increases) when you receive the 90 days notice. Be prepared to ruffle your landlords feathers with this response.
2. Decline and advise you will pay the legal 2.5% but being empathetic to his situation, forego the 90 days and pay the increase in 30 days.
3. If he tells you that you have to move out, wait for the proper paperwork: [n12](https://tribunalsontario.ca/documents/ltb/Notices%20of%20Termination%20&%20Instructions/N12_Instructions_20200728.pdf). An n12 is a request, not an eviction. He will have to file an L2 which triggers a tribunal hearing. This is where you can provide evidence of the landlord blackmailing an unapproved above guideline increase.
or
1. You can negotiate an above guideline increase with the landlord that you and mom are able to afford.
If the landlord continues to harass you and your mom with veiled threats of eviction – you can file a T2 for harassment. If there are outstanding maintenance issues, throw that in the mix as well.
No, they can’t do this, but you do need to document their extortion attempts. Record conversations, but ideally get everything in writing (text/email works).
The LL has to notify you using the approved forms, as other comments have said. Anything else (text, phone call) is not valid.
You are under no obligation to educate your LL about rental law in Ontario. The more you can get them to say in text/email or on recordings the better for you. You can ignore anything that is not a valid form notification, but keep it (plus any replies) as evidence of an illegal rent increase demand, plus threats of retaliation (eviction).
If they eventually wise up, and deliver the correct forms, you will then have evidence for disputing the notice with the LTB.
One other thing. If they do evict you for their parents to move in (say, you have had enough of these bozo’s and accept the free rent compensation to move out) – but then you see the property advertised for a higher rent, you can file a bad faith eviction claim with the LTB, if you can show that the parents never moved in, and the property was simply rented out again for higher rent. Make sure you have evidence, like copies of the ad’s, evidence that the parents never moved. The parent have to move in “within a reasonable period”, and live there for at least 1 year. Leaving the property vacant, renovating, or turning up once a week does not count, they have to live there as a primary residence. So in this case, you are best off waiting a few months or longer, unless another tenant moves in.
The payout for a bad faith eviction, is all your moving costs, the rent differential for 1 year, plus whatever else you can prove (gas, storage, loss of wages for time off etc). They could also face a fine (which you can request), but this is rare.
DO NOT EDUCATE YOUR LANDLORD! Let them dig their own grave.
I get a kick out of landlords threatening to move in family because the rent is not high enough to pay for their investment. Like “I cannot make my mortgage payments so instead of having a reliable tenant I am going to move in family who will for sure not be charged market rate rent”. Yeah, that makes total sense.
If your unit was a rental before 2018 they cannot raise the rent on a month to month lease above what is currently allowed. If they try to evict you for landlord use, contest it right away.
If your unit was a rental after 2018, sadly they can increase it as much as they want. Thank Doug Ford for that.
Did your building or unit exist prior to November 15, 2018? Is it an apartment building, single family home, basement unit?
If your unit is rent controlled, then you do not need to accept the rent increase. You should get proof (in writing or a recorded conversation) that the landlord is threatening to move their parents in if you don’t pay the increase.
If the unit is fairly new and exempt from rent control, you are out of luck.
Document everything !!
I love when I hear of “Pay more or else I’ll give you a reason to take me to the LTB for a bad faith eviction”
Keep all communication to text and email. If they try to call you or want to speak in person refer them to use one of the above
Keep a copy of all digital communication including threats of moving parents into unit
Inform yourself of your rights and the LTB process. Nothing is legal unless the appropriate forms are filled out. You don’t need to tell your landlord which forms they need to provide let them figure that out
Reject any above limit rent proposals with no further explanation or offer
Most of the responses here are correct if you’re in Ontario.
Rental increases are provincially regulated, so if you’re nit in Ontario it might be different.
And yeah, tenants shouldn’t be expected to pay for landlord’s reckless financial choices.
If ur place was built before Nov 2018 he’s not allowed. The legal increase limit this year is 2.5%
Refuse the rental raise, except the eviction, and then turn around in court, and have them for bad faith, because they literally just admitted to you that it was financial purpose for moving in the parents to increase the rent and that’s not actually how it’s gonna go down because they’re gonna use that as an excuse to evict you and move someone else in willing to pay $2800, not their parents I Beto
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Even with no written lease, you inherently default to having the standard Ontario lease. So you’re month to month on that and you are protected by the rta.
Check when your unit was first occupied to see if you’re covered by rent control. If you are, tell them to submit for a legal increase and you’ll pay that when it comes into effect. If you have it in writing that they’ve said that if you don’t agree to a rental increase they’ll evict you then you have it documented that it’s a bad faith eviction.
Know your rights here, and don’t let them get away with this bullshit. It’s not your responsibility to pay your landlords mortgage, they’re still making money year over year on their investment while you pay for the majority of it.
I love the part about covering the mortgage. Like it’s assumed rent should always cover the landlord’s mortgage.
Send them an email, and ask them to clarify what they said. That’s your proof it’s a bad faith eviction
I want an $8k raise too! Send him your boss’s phone number and see if they can work out deal. Only slightly /s
I’m on a month to month lease too. You still have rights. Your landlord cannot raise the rent by more than the specified amount each year. This year it’s 2.5%
If he wants to evict you to move his parents in, he has to serve you an N12 notice, but if he does that, don’t leave. Fight it in court. You have evidence to prove that he’s evicting you in retaliation, which is also illegal. Stay strong, landlords are scumbags. Read the Landlord and Tenant Act and know your rights so you can advocate for yourself.
My Landlord recently told me he wants to raise my rent from $1500 to $2500. For the same reason. His mortgage went up. So I’ve done plenty of research on it and I’m fighting him. Your landlord’s mortgage is not your problem. Don’t let him take advantage of you.
Edit: Also, he is legally required to give you 90 days WRITTEN notice of rental increases. Sounds like he’s giving you a month at most. That can also be used against him in court.
What province are you in?
They are bluffing about parents, but actually fucked themselves by wording it that way as it’s now retaliatory and not required (where will the parents live if you stay there)
Call it, let them go thru the board to boot you while you look for somewhere else.
If they do evict and don’t move in their parents, they will regret it financially since it’s easy to prove. Ontario LTB will roast them and you’ll win up to 12 months rent (difference vs old rent) and moving costs.
The increased mortgage rates shouldn’t affect them, aren’t they generally fixed when you purchase the house (they have variable ones but even those are 5 year fixed) . That’s a lame excuse in my opinion.
Question regarding OP’s initial statement: Being that there’s no active lease or legal binding, does legal or rental laws count in this situation? or do to the fact there is no lease throw a curveball into the play?
Can’t afford the mortgage maybe they should learn to code
Since I haven’t seen it elsewhere, just add on that you do have a lease. In Ontario the lease is essentially automatic (unless you share common areas with the landlord). So you have the standard Ontario lease, which you can find online pretty easily.
Month to month is essentially still a lease, but with no end date.
If you do not share kitchen/bathroom with landlord and the property you are in was built pre 2018, Landlord can only raise rent a maximum once every 12 months to the legally allowed rate, as noted as noted by /u/R-Can444, is currently 2.5%… everything else they say is correct.
Don’t bother responding to landlord. Less you say the better. Let them learn the law the hard way. If you do speak with them, ONLY by text or email. Get yourself some cameras, including pointing at your mailbox if you can. You do not have to move until the LTB says so. Landlord cannot make you leave no matter how much they think they can.
If they send you an N12, you can ask them to clarify, like R-Can444 says. Otherwise no need to do anything until there is a hearing. As R-Can444 says, LL basically will lose. Still hire a paralegal to make sure you do everything correct.
From this point forward document everything. make copies of all emails and text messages and create timelines of communication and so on.
If landlord tries to get you to sign an N11, DO NOT SIGN IT! Speak with a paralegal first and make sure you are handsomely compensated should you chose to sign your rights away for “cash for keys” if you are willing to move. Keep in mind not only is he trying to get you out of your home, there are moving costs, the huge rent increase you will likely be burdened with for several years should you move etc.
Some reading for you:
* [How much can my rent go up? – Steps to Justice](https://stepstojustice.ca/questions/housing-law/how-much-can-my-rent-go/)
* [Can I be evicted if my landlord wants to move in? – Steps to Justice](https://stepstojustice.ca/questions/housing-law/can-i-be-evicted-if-my-landlord-wants-move/)
(had his mortgage been paid off, you think he would let you live there nearly free? Of course not! He is still profiting as he owns the asset. It just isn’t liquid until he sells. And you do NOT have to move out because he is selling; the new owner becomes the landlord. And if the bank owns his house, then the bank becomes your landlord.)
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Assuming it’s rent controlled, and not shared with the landlord…
No you aren’t screwed, you don’t have to do anything besides pay the legal rent. Until (if) they submit the actual proper form like a N12 and LTB orders eviction.
What you should do is try to collect evidence of some sort in writing (e.g. email/text, or record conversation if need be) of this “threat” of moving family if you don’t pay increased rent. I wouldn’t let on how you are (or now are anyway lol) familiar with the rules and how that would now be a bad faith eviction.
If he catches onto his mess up he might try to just evict without bringing up rent (depends on how much of a empty threat it is or if they have actual intentions of it).