Increase in rent by 25%
Unfortunately, it's legal.
In Ontario, there are limits on rent increases: it is allowed to increase by no more than 1.2% per year. And before January 1, 2022, it was illegal to change the terms of the lease at all, because before the pandemic, prices skyrocketed. But now the pandemic freeze is over, and some homeowners have struck out on their greed.
A Toronto couple was so outraged by the demand to pay $2,500 CAD instead of $2,000 CAD for an apartment that they went to lawyers and television. This is not the first time Canadians have tried to force landlords to keep their prices the same, sometimes they even succeed.
But in the Toronto apartment situation, it turns out that houses rented after November 15, 2018, are not subject to rent restriction rules. It's up to the Landlord and Tenant Board to decide. That's how the province of Ontario is trying to incentivize developers.
Lawyers recommend paying attention to this nuance before signing a lease. Many people, if they are satisfied with the apartment, it would seem acceptable to increase the fee by 2-5%, and you can add to the contract a clause on the maximum amount of the surcharge, so that you do not have to urgently look for a new home. Better yet, take out a mortgage and buy your own place, which on average would cost $700 CAD a month less.
