rent increase?

[TimG]

Is there a maximum percentage that a landlord can increase your rent by each year?

How much notice does a landlord have to provide a tennant if he intends to increase the rent?

[likwid]

I was given a 3 month notice.. not sure if that is standard or not

[lastskpirate]

Originally posted by likwid
I was given a 3 month notice.. not sure if that is standard or not


yes by law, a landlord must give a minimun of 3 months notice for an increase in rent

[TimG]

is there a maximum % increase that a landlord can increase the rent by? 3% unlimited?

[Thaco]

Originally posted by TimG
is there a maximum % increase that a landlord can increase the rent by? 3% unlimited?

pretty sure it's unlimited. I know my brother lives in a ghetto condo complex in rundle and his landord is jacking the rent like 30% next year.

[tulit]

Originally posted by lastskpirate



yes by law, a landlord must give a minimun of 3 months notice for an increase in rent

Is that an Alberta only thing or Canada wide? Is this true even if you are month-to-month?
I got 2 weeks notice!

[Thaco]

Originally posted by tulit


Is that an Alberta only thing or Canada wide? Is this true even if you are month-to-month?
I got 2 weeks notice!

if you havn't signed a lease it's probably an illigitimate suite anyways so there probably isn't much you can do, unless you think the increase is insane, in which case you move out and rat him out.

[TimG]

no cap on how much rent can be increased???

great. i'm looking forward to a 50% increase in my rent next year :rolleyes:

[Traffic_Cop]

Month 2 month...can raise twice in a year, but however much they want, there are no rent control laws in Alberta.

[Thaco]

Originally posted by TimG
no cap on how much rent can be increased???

great. i'm looking forward to a 50% increase in my rent next year :rolleyes:

they obviously just want you to move out so they can sell the place. or renovate it and rent it for 200%

[lint]

Originally posted by TimG
no cap on how much rent can be increased???

great. i'm looking forward to a 50% increase in my rent next year :rolleyes:

Tough spot to be in, but the economy is driving it. Rents have definately not caught up with house price increases lately. With housing in such short supply, landlords aren't going to stand idly by. Remember it was only a couple of years ago when vacancy was high and landlords were giving 1 month free just to get tenants? They're taking their pound of flesh now.

[TimG]

I don;'t think that would be the reason.

I looked at comparable townhouses for rent in my area and they're all about 50% more than what im paying now.

[lastskpirate]

Originally posted by tulit


Is that an Alberta only thing or Canada wide? Is this true even if you are month-to-month?
I got 2 weeks notice!


in alberta it is

[googe]

Why should landlords have to pay twice as much for a condo now but it not be fair for them to cover their additional costs? Face it, cost of living is going up, rent follows housing prices...

If houses jumped by 50% its ony logical that the rent prices follow.

[woovic]

Check this out, some tips that landlords and tenants should know, keep in mind this is for Alberta:

Information for Landlords and Tenants (tipsheet)
http://governmentservices.gov.ab.ca/pdf/tipsheets/RTATipsheet.pdf

From the PDF, Rent Increases (Page 5):

Under a fixed-term residential tenancy agreement, the
landlord and tenant agree to the amount of rent a
tenant will pay for the entire term of the tenancy.

Under a periodic tenancy agreement, the landlord may
raise the rent during the tenancy.

There are no controls over the amount by which the
landlord may raise the rent. The RTA does limit the
frequency of increases to two per year and the
Residential Tenancies Ministerial Regulation specifies
the amount of time that must pass between rent
increases.

[slick2404]

*Bumping old thread for advice since I know we have quite a few knowledgeable people on here*

Our rental property's lease is coming due in 60 days. Fortunately we are able to retain a very good tenant, but he wants to sign a year to year lease which is fine.

The rent we collect does not cover our mortgage payment +fee's but that is fine, since something is better than nothing...however since the 1st year is now up I am wondering what an 'acceptable' rent increase would be.

I was going to propose a 5% increase for the year, but am worried as other surrounding units are a little cheaper. I could keep it the same and continue to taking a loss or should I take this opportunity to increase the rent regardless? Also is 5% to high?

*Updated with details*
Current rent is $1150 incld utilities for reference (2bdrm, SW Chaparral Condo) Larger units (about 150sqft bigger) in the same complex are going for $1200-1250. This makes me think I should stick to the current rate to avoid issues.

Thanks.

[masoncgy]

$1150 for... 2 bedroom, 3 bedroom? House/Duplex/Condo? Where in the city is it?

Lots of factors to determine how much rent you can charge without going overboard.

[urban.one]

5% is probably reasonable. Keep in mind that if you have a tenant that pays his rent on time and doesnt cause trouble for you then thats worth a lot.
5% would be about $60. If you say other units are cheaper, that $60 might be enough for your tenant to take a look elsewhere. If your tenant leaves and you cant find a new tenant immediately then you could be out $1150 for that months rent. Having the unit sit empty for one month could take you 20 months to make back with a $60 monthly increase.
edit: and dont forget any expenses you may incur such as painting and the time and money spent finding a new tenant

Keep in mind that a renter will look at rental rates for comparable units and wont care about what his landlords expenses are.

[Wrinkly]

You can increase as much as you like - I don't think there's any limit in Alberta as yet. BUT you can only do it once in any given year, and as stated above you have to give him notice (3 months seems to be the consensus).

Of course, if you charge too much, your tenant has every right to leave and you may be left with an empty property. 5% is very small and if your current rent is reasonable then it shouldn't be a problem. You can also write losses on property off against your taxes, so that could help.

[norbel]

What you living in now? I have numerous properties for rent if anyone ever intrested.

[tenth]

Originally posted by slick2404
*Bumping old thread for advice since I know we have quite a few knowledgeable people on here*

Our rental property's lease is coming due in 60 days. Fortunately we are able to retain a very good tenant, but he wants to sign a year to year lease which is fine.

The rent we collect does not cover our mortgage payment +fee's but that is fine, since something is better than nothing...however since the 1st year is now up I am wondering what an 'acceptable' rent increase would be.

I was going to propose a 5% increase for the year, but am worried as other surrounding units are a little cheaper. I could keep it the same and continue to taking a loss or should I take this opportunity to increase the rent regardless? Also is 5% to high?

*Updated with details*
Current rent is $1150 incld utilities for reference (2bdrm, SW Chaparral Condo) Larger units (about 150sqft bigger) in the same complex are going for $1200-1250. This makes me think I should stick to the current rate to avoid issues.

Thanks.
The principal portion of your mortgage payment builds equity in the house, so it's not really a "loss" it's a net cash outflow. If you can afford to pay the difference and are on the high side of price as it is, I wouldn't increase it at all. Lots to risk in this market for marginal gain. If he balks, you may have to decrease the rent from what it already is to rent it out, and even then the new renter could be a disaster.

[dirtsniffer]

its obviously easier to keep and existing tennant than to find a new one. with the ammount of rental properties on the market i would suggest leaving the rent where it is. Because, if my landlord raised my rent i would take it as a sign that he wanted me to leave, atleast in this market. My girlfriend is even considering giving her tenants a decrease just to save the hassle of looking for new tennants

[Cos]

Honestly keep his rent the same and he will treat your place a lot better. We treated my place like gold until the land lord started screwing with me (financially and timelines).


Now I couldnt give a shit, if she isnt going to be reasonable or helpful with me then I have less of an interest in taking care of my place. Only 42 days till I get my house anyways so fuck it.

[cmyden]

I follow the rental market pretty closely, and I can tell you that a lot of places are offering reductions and incentives, not asking for increases.

The rental market softened a lot this year throughout summer and fall. Inventory dropped suddenly in January/February though as a lot of landlords seem to be putting their units up for sale. That's seemed to stabilize prices, and the median rental price has stayed the same for quite a while.

So if anything, I would keep it where it is, not increase it and hope that your tenant is happy where they are. It's a far different climate from when this thread started.

[slick2404]

Thanks for the positive and insightful comments everyone, I'm gonna keep the rent the same to keep the tenant around for as long as possible!