Your tenant’s first year lease is coming to an end. What happens now?
Should you wish to increase the rent, it’s important to note that there are specific deadlines and forms needed in order to be compliant with the Residential Tenancies Act. This should be done congruent with the lease renewal converting to a periotic lease, issuing interest on the LMR statement and the rental increase.
Remember that interest on the last month’s rent must be issued annually, even if you don’t raise the rent.
Before you consider a rental increase, you need to be aware of what kind of increase can be carried out on the building or unit and which form to use. Is the property capped by guideline protection or exempt from limits? Some buildings, such as those delivered prior to November 15, 2018 are capped. For 2022 the limit for a standard guideline increase is 1.2%. This rate changes annually as calculated by CPI.
Further to that, you need to factor in what forms are used for what kind of increase.
All documents should be completed at once, providing 90 days notice to the tenant, in the 9th month of the lease or since the last calculation being sent.
Sound overwhelming? Let us help you navigate all this correctly.