Rent Control Bulletin: Rent Guideline Forecast for 2012: 3.1%!
The Federation of Rental Housing Providers of Ontario (FRPO) has advised its Members that the projected Rent Guideline increase for 2012 will be 3.1%. The guideline is usually announced by the Province near the end of August but is based on numbers which allow for the projection calculated by FRPO. The guideline for 2011 was only 0.7% so the increase for 2012 is substantial by comparison and reflects higher operating costs already incurred by landlords during 2011.
Landlords contemplating taking statutory increases in November and December of this year would be serving their 90 day NORI’s right around this time for November and a month from now for December, but those increases would only be for 0.7%. You may want to consider deferring the increases on those units for a few months to January 2012 and taking a 3.1% increase instead. If you do that, you can realize the higher cash flow for those units sooner, rather than later.