Rent Increase

[Engine09]

New owners took over the building I live in, they've informed me that rent is going up by quite a bit. I understand that after the flood last year everything is more expensive and I've been paying reasonable rent for years.

Did some quick research, seems straightforward to me, as a landlord you can increase rent once a year and must give 3 months notice in writing before the increase comes into effect.

The property manager just sent me an email saying, nope that's not the case, we can increase rent once a year and do not need to give 3 months notice.

Is this info on the following website out of date? Do these guidelines just not get recognized or followed by landlords?


http://www.cmhc-schl.gc.ca/en/co/reh...h/fash_001.cfm

Rent Increases: Notice and Timing
There are no controls on the amount of rent increases in Alberta. Rent can only be increased if there has not been a rent increase within the previous 365 days or since the start of the tenancy, whichever is later. Before the rent can be increased the landlord must give written notice in advance. The specific timeframe is dependent on the term of the tenancy:

• weekly: 12 full tenancy weeks
• monthly: 3 full tenancy months
• any other periodic tenancy: 90 days

A notice of increase in rent must indicate the date on which the increase is to be effective and must be dated and signed by the landlord.

[Canehdianman]

I'd look at the Residential Tenancy Act.

[photon]

Are you on a fixed term lease or on a periodic lease?

[gladaki]

Originally Posted by Kryzsky

New owners took over the building I live in, they've informed me that rent is going up by quite a bit. I understand that after the flood last year everything is more expensive and I've been paying reasonable rent for years.

Did some quick research, seems straightforward to me, as a landlord you can increase rent once a year and must give 3 months notice in writing before the increase comes into effect.

The property manager just sent me an email saying, nope that's not the case, we can increase rent once a year and do not need to give 3 months notice.

Is this info on the following website out of date? Do these guidelines just not get recognized or followed by landlords?


http://www.cmhc-schl.gc.ca/en/co/reh...h/fash_001.cfm

Rent Increases: Notice and Timing
There are no controls on the amount of rent increases in Alberta. Rent can only be increased if there has not been a rent increase within the previous 365 days or since the start of the tenancy, whichever is later. Before the rent can be increased the landlord must give written notice in advance. The specific timeframe is dependent on the term of the tenancy:

• weekly: 12 full tenancy weeks
• monthly: 3 full tenancy months
• any other periodic tenancy: 90 days

A notice of increase in rent must indicate the date on which the increase is to be effective and must be dated and signed by the landlord.

How much they are increasing ?

[ken0042]

Just to be clear, is your lease coming to an end, and they are giving you a new lease? Or is this an increase mid-lease?

[photon]

Some common questions/answers on Service Alberta's site:

http://www.servicealberta.gov.ab.ca/618.cfm

If it's a periodic monthly tenancy then it's supposed to be 3 months.

If it's a fixed term tenancy no notice is required, the tenancy is ending at the end of the agreement (unless there's something in the contract that changes it into a periodic at the end of the fixed).

[ignite09]

Originally Posted by photon

Some common questions/answers on Service Alberta's site:

http://www.servicealberta.gov.ab.ca/618.cfm

If it's a periodic monthly tenancy then it's supposed to be 3 months.

If it's a fixed term tenancy no notice is required, the tenancy is ending at the end of the agreement (unless there's something in the contract that changes it into a periodic at the end of the fixed).

So if I'm reading that right. If you just ended a year long lease and are simply renewing it, then no notice is required?

[Engine09]

Originally Posted by photon

Are you on a fixed term lease or on a periodic lease?

They just bought the building in Feb, they gave me a 3 month lease while they got organized, which is now done. June 1st will be the beginning of the new lease.

From $750 to $1390, in Bankview. The building is decent, I've been lucky paying low rent for all this time.

[Baxter Renegade]

Originally Posted by Kryzsky

They just bought the building in Feb, they gave me a 3 month lease while they got organized, which is now done. June 1st will be the beginning of the new lease.

From $750 to $1390, in Bankview. The building is decent, I've been lucky paying low rent for all this time.

Wow, That's a stunning increase my friend...

I live in a nice 2 bed 2 bath apartment right off 130th ave. Rent started @ 1250 and increased to 1350 after a coupe years. The increase occurred once I signed another lease. I did the research and my findings proved that the increase was within their capabilities.

Unfortunately, I think your hands are tied.

Thats a brutal increase... man...

EDIT: sorry for the use of the word "increase" so often.

[BlackArcher101]

Originally Posted by ignite09

So if I'm reading that right. If you just ended a year long lease and are simply renewing it, then no notice is required?

Only if the lease hasn't actually ended yet and it's a fixed term that doesn't switch to a month-month periodic tenancy. However, if it just ended, and you have been allowed to stay for even a single day past the move out date, a new month-month tenancy is inferred and 90 days notice is required.

Originally Posted by Kryzsky

They just bought the building in Feb, they gave me a 3 month lease while they got organized, which is now done. June 1st will be the beginning of the new lease.

You mention the least is now done. I assume it ended April 30th? If so, they are in the wrong here as they allowed you to switch to a month to month tenancy even though you probably should have moved out. If that's the case, they can't raise the rent on you immediately by signing a new lease.

[Locke]

Wow, they basically doubled your rent, thats rough.

[TheyCallMeBruce]

I think they want you out. That kind of rent increase can only mean they don't want tenants anymore.

[Engine09]

I signed a 3 month lease in Feb, it goes from Mar 1st to May 31st. I'm still unclear, dos the 90 day notice only apply in the middle of a lease?

Yeah, brutal increase. I've put a couple thousand into my savings account over the past year for a mortgage down payment but this is really going to slow me down.

[BlackArcher101]

Originally Posted by Kryzsky

I signed a 3 month lease in Feb, it goes from Mar 1st to May 31st. I'm still unclear, dos the 90 day notice only apply in the middle of a lease?

Yeah, brutal increase. I've put a couple thousand into my savings account over the past year for a mortgage down payment but this is really going to slow me down.

Does the lease say it automatically switches to a month to month tenancy after May 31st, or are you preparing to move out in a few weeks?

If it's fixed with a firm move out date of the 31st, then yes, they can have you sign a new lease at a higher rate... or you simply move out as initially planned. They got you by the balls if that's the case.

Sure it's a huge increase percentage wise, but you were getting a smoking deal before hand, now it's just normal. Look at it as a test to what your mortgage would cost anyways.

[WinnipegFan]

I have a few condos that I rent out and if you are at a new lease agreement they do not have to give you notice. My wife and I would not do that to a tenant, but they are new owners and don't really have an obligation to the tenant. It is unfortunate but that is reasonable rent given the current market. 750 was an amazing deal, I am sorry that you are stuck in this and I wouldn't argue that they want you out, they are simply adjusting the rent to the current market. The rental landscape is insane, our places go within days of them opening up. I listed my mission one on here last week and am signing a contract for it tomorrow. If you like the area and the apartment then I would suggest taking it as you will struggle to find anything in that price range that is not an old beat up place. It is a tough market right now. The 3 months is if the increase is during a lease agreement.

Do you want to stay in that area? Or have other options, I know of a few places available this summer but they are not central and not our units, just through friends. Let me know if I can help at all.

[ken0042]

They could also be adjusting the rent to cover the mortgage they are paying. If the previous owner had the place for 6-10 years, $750 might have covered their mortgage. However with the new sale price, $750 likely wouldn't cover it unless they had a huge down payment.

I do agree that it sucks though.

[photon]

As BA says if it's a fixed term agreement with no wording about converting to a periodic on the same terms then you either have to vacate at the end, or you have to negotiate something new which means they can set whatever rate they want.

I use this to my advantage sometimes, if I have doubts about a tenant I'll sign them to a 3 month fixed term agreement that ends and says that it only extends if agreed upon via an amendment or new agreement. So if they turn out to be bad tenants I have the option of not doing something else and they're out. I always expect some objection since it gives me the power but I haven't had one yet (and since I've started doing it I haven't really had the necessity to actually follow through).

[photon]

Originally Posted by ken0042

They could also be adjusting the rent to cover the mortgage they are paying. If the previous owner had the place for 6-10 years, $750 might have covered their mortgage. However with the new sale price, $750 likely wouldn't cover it unless they had a huge down payment.

I do agree that it sucks though.

Yup, I actually did this once when I bought a couple of 4plexes, the rents were waaay below market and covered the guy's mortgage I'm sure, but there was no way I could afford it at those rents. It wasn't double, but it was 50% or so. I felt bad.

All the tenants assumed the rents were going to go way up, they knew they were getting a sweet deal.

Only a few moved out as a result.

[Engine09]

Originally Posted by BlackArcher101

Does the lease say it automatically switches to a month to month tenancy after May 31st, or are you preparing to move out in a few weeks?

If it's fixed with a firm move out date of the 31st, then yes, they can have you sign a new lease at a higher rate... or you simply move out as initially planned. They got you by the balls if that's the case.

Sure it's a huge increase percentage wise, but you were getting a smoking deal before hand, now it's just normal. Look at it as a test to what your mortgage would cost anyways.

No mention of switching to month-to-month, fixed term from Mar 1st to May 31st.

Yep, can't really complain. The money I saved over the years helped me pay off student loans, other debt and start saving a bit.

They have a 1 year lease ready, they're just getting what they can out of the property, everything comparable is right in that range or even higher.

I briefly thought about moving but I've been in the Marda Loop/Bankview area for over 10 years and I like it here. I like my setup, living arrangements and parking, etc. Plan was to stay here until I have that down payment saved up. Need to speed up that plan now.

[Baxter Renegade]

Originally Posted by TheyCallMeBruce

I think they want you out. That kind of rent increase can only mean they don't want tenants anymore.

I don't know about that... 1390 for a rental property in Calgary is still on the low end. I've been looking to rent a slightly larger space, and the rates are ridiculous.

This of course depends on the individual space, but even a dumpy basement sweet for $750 nowadays is pretty hard to come by.