A closer look at the imbalance between provincial rent increases and inflation By David Gargaro
A rental property owner’s ability to increase rents typically depends on whether the province or territory has rent control. If there is rent control, the government sets the rent increase guideline, which is a percentage limit on the rent increase that can be charged absent special circumstances. If there is no rent control, the rental property owner can increase the rent by the amount they deem appropriate. In some cases, they’ll use inflation and increases in operating expenses to guide their decision-making on rent levels. Average income levels and the Consumer Price Index (CPI) have increased over the last few years. However, rent increases in rent-controlled provinces have not kept pace. As a result, rental property owners are not charging market rates and are earning less than they should be.
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