Month to month tenancy. Increase rent or end tenancy. (Ontario

[Mark Brazier]

I just purchased a multi unit property in Ontario and the rents are quite low in comparison to what they should be. So I have a couple questions about going about these increases. I have been making some improvements on the property and I have told tenants verbally that I am looking to increase rents for May 1st. I haven't yet received any resistance and one tenant even acknowledged her low rent when I met her on day one of taking the property over and she offered to write me a check for a higher amount. My improvements have now come to an end and I would like to get something in writing from my tenants.

So none of my tenants have a lease they are all month to month by default. Now I don't know if I will get resistance from them but I would like to a) have them sign a lease for my desired rent which is more than the guideline increase set by landlord tenant board, or if I get resistance b) end tenancy and renovate their apartments altogether and rent them for full market rent. 

Can I do this? Should I do this? Has anyone ever done this? 

Thanks!

[Matt Geerts]

So, you bought a multifamily rental, but you've never read the RTA? The answers to all of your questions are written very plainly in the regulations. They aren't even written in "legalese", just plain as day English.

You'll find a dozen threads on this site by people in Ontario asking how to get started and in I always tell people to start by printing off a copy of the RTA, read it three times, then read it again very slowly trying to figure out how every single paragraph can be used to screw you.

You can't force leases on people who are month to month. You can't just jack up rents, the guideline rent increase is defined by the LTB annually. You CAN roll SOME of your capital expenses into a limited increase above the guideline and all of that is spelled out clearly in the RTA (you won't be happy when you see how little you're allowed). If someone is offering to pay rent above the guideline, then I'd get that offer in writing with a signature before accepting it, or they could just cry to the LTB that you're a big bad meanie landlord jacking up the rents and they WILL bend you over.

Good luck, and (despite perhaps a little bit of sarcastic scathing) we are all here to help and want you to succeed :)