City
Rent Reduction Is an Early Christmas Present for 128,000 Toronto Tenants
There's such a thing as mandated rent reduction in Toronto? Who knew?!
Along with a lovely holiday cheer card from a good friend (hi, Sameer!), my mail arrived today with an early Christmas present from the City of Toronto Shelter, Support and Housing Administration Division.
I received notice that my rent is being reduced, effective December 31st, 2009, by 0.53%.
Being the first time it's happened to me, I'm curious how common this is. How and why and when does this happen? Did many renters get these notices?
According to the accompanying paperwork in the rent reduction notice, when annual property taxes on rental properties goes down more than 2.49%, tenants are entitled to a rent reduction. In my case, (and after a fairly simple calculation) this reduction amounts to 0.53% off my monthly rent, which is not much to dance around naked about. It does amount to the approximate cost of an indoor parking space for one month of the year, and it sure beats a rent increase.
Apparently I'm one of over 128,000 Toronto tenants that are on the mailing list for rent reduction this year. To you all, I raise a glass and say... cheers! To the remaining majority, whose properties taxes increased this year... my sympathies to you. Hopefully your rent doesn't go up as a result.
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Keep in mind that come July, with the implementation of the HST, many landlords will be applying to the Tenant Board for a rent increase above and beyond the annual guideline, and will probably get it. While apartment rent is not taxed, many of the goods and services that make up the costs hidden within your rent are taxed, and will be taxed 8% more come July.
Given the estimates floating around for condo costs, which share many similar costs to rental housing, I think you can expect many landlords to be seeking a 4-5% rent increase, which they may very well get, and is more than most of the rent reductions.
You can thank McGuinty and Harper for that.
http://network.nationalpost.com/np/blogs/toronto/archive/2009/12/16/city-punishing-us-for-tenants-recycling-failures-landlords-say.aspx
When I lived in my last apartment I got those rent reduction notices annually. I never did anything about it. I was in a co-ownership building, renting from the owner of the unit. I did, however, make sure I got the refund for the interest on my deposit (albeit I got it all at once before I moved out, rather than annually). This is another thing that many renters don't know about. See third section here: http://www.ltb.gov.on.ca/en/Key_Information/STEL02_111479.html
According to the list on the City website, my current building's taxes increased this year. No reduction for me.
The rent decrease, that is. Oh, and my card too. :D
See you in a little over a week, buddy.
I'm telling everyone to get out there with that report and negotiate with their landlords.
But i got my rent increase letter last month for feb, 2.1%
How can the rental guideline go up over 2% when we had deflation worries for a good portion of this year. Energy costs are a weak argument since we went from $149 a barrel for oil to as low as about $50 a barrel this year and electricity rates have barely moved.
I wouldn't trust this city if it told me the sky were blue or the Leafs were hopeless....
My name is Michael Dick, I am a reporter with CBC -TV. I am working on a story today about the reductions, and was hoping someone who got one, would be interested in doing a quick tv interview about what they think etc. It would not take very long...
please email me at
Michael.dick@cbc.ca if interested
I got my notice of reduction (as noted above) and today I got a letter saying that this is not going to happen for ANYONE. That the reason for the decrease is that the waste levy tax was moved from property to water bills and thus the property taxes didn't actually go down per se.
In summary, my landlord says dont' bother adjusting your rent because you'll just owe us the money back come January when this is sorted out.
This city is run by a bunch of chimpanzees - no offense to chimpanzees meant.
reduction of 20-50 dollars in rent and increment on other things; TTC fare. funny !