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2013 Rent Increases for Canadian Landlords and Why Credit Checks Are More Important Than Ever

January 10th, 2013 · 1 Comment · Credit Checks, tenant screening

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Why the 2013 Rent Increase Guidelines For Canadian Landlords Means You Need To Do Credit Checks and Great Tenant Screening

It’s already the second week of 2013.  Have you thought about raising your rent yet?  Do you know most provinces have rent control.  This means you can only raise the rent as much as the provincial government says you can.

Allowable Provincial Rent Increases for Canadian landlords

Ontario landlords can raise the rent by only 2.5%

The rent increase should be higher, but the government capped rent increases to this low number.

*  In British Columbia the allowable rent increase for 2013 is 3.8%

*  In Manitoba the allowable rent increase for 2013 is only 1.0%

*  In Saskatchewan the system is different. No increases are allowed during a fixed-term lease unless the landlord and thetenant agree to the amount of the increase and time when an increase is to come into effect at the time they enter into the fixed term tenancy.  Read the details here.

*  In Nova Scotia landlords can raise the rent by 3.0% in 2013.

*  In Quebec some specific rules apply to residential rent increases. For leases longer than 12 months, the landlord and the tenant are free to adjust the rent during the course of the lease. If the duration of the lease is 12 months or less, the rent may not be increased during the course of the lease. There is no cap on rent increases or fixed rates of increase however the tenant must be given proper notice in writing.

*  In Alberta landlords don’t have to have the government tell them how much they can increase their rents. Read more here.

Question:  What’s The Common Theme In All of The Government Allowable Rent Increases?

Answer:    The Percentage You Are Allowed To Raise the Rent is Low!

Costs are rising fast in Canada.

And what if you get tenants who don’t pay on time or do damages? What if you need to do major repairs? What if your other rental properties are empty and you need to rely on getting cash-flow from an other of your rental property?

Low allowable rent increases are a reason who need to avoid renting to bad tenants and that means proper tenant screening including credit checks.

 

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1 response so far ↓

  • 1 Hamilton landlord // Jan 16, 2013 at 5:40 am

    Excellent article.

    My rentals are running smooth after I started using credit checks.