RENT ADJUSTMENTS 2015/2016
These calculations relate to the changes to rents as approved by
1) the City,
2) the Province and
3) the Landlord and Tenant Board (LTB).
The example shown is to illustrate the effect of these changes on your rent payments and whether you owe or are owed amounts up to the end of April 2016. The anniversary/lease renewal date of November was used for illustrative purposes only. Substitute your actual renewal dates and the rent you paid for your own personal situation.
- The City decreased the taxes Shiplake had to pay and a certain percentage was to be passed on to the Tenants in the form of a rent reduction equal to .43% effective the 1st of January 2015. This amount would be your last rent payment in December 2014 less the .43%. See Lines 1-3 below.
- The Province approved an Allowable rent increase for Landlords of 1.6% effective on your anniversary/lease renewal date in 2015 and 2.0% in 2016. See Lines 3-5 and 7-9 below. November used as the lease renewal/anniversary date.
- The Landlord and Tenant Board approved an Above The Guideline Increase (AGI) for the Landlord of 2.6% or 1.3% depending on when you moved in. The Notice from the LTB should show your unit number and the amount of the increase. This increase takes effect on your next anniversary date after July 1st 2015. See Lines 5-7 below. The 2.6% amount was used for this example. Substitute 1.3% if your notice shows that amount.
|1||$1,000.00||Base Rent Jan 1, 2015/Last month’s rent 2014|
|2||0.9957||Rent decrease account lower taxes (0.43%)|
|3||$ 995.70||New Base Rent Jan 1, 2015|
|4||1.016||Allowable increase 2015 (1.6%) See Note B above.|
|5||$1,011.63||New rent effective November 2015 (Step 1)|
|6||1.026||AGI approved (2.6%). See Note C above.|
|7||$1,037.93||New rent effective November 2015 (Step 2)|
|8||1.02||Allowable increase for 2016 (2.0%)|
|9||$1,058.69||New rent effective November 2016|
Note in this example that both the 1.6% allowable increase and the 2.6% AGI increase the rent on the lease renewal date of November 1, 2015.
In this scenario the tenant would owe the Landlord $184.60 up to the end of April 2016. This will increase if the Landlord does not make adjustments until a later month.
|Year||Month||Should Have Paid||Actual Payments|
|2014||Dec||$ 1,000.00||$ 1,000.00|
|2015||Jan||$ 995.70||$ 1,000.00|
|Feb||$ 995.70||$ 1,000.00|
|Mar||$ 995.70||$ 1,000.00|
|Apr||$ 995.70||$ 1,000.00|
|May||$ 995.70||$ 1,000.00|
|Jun||$ 995.70||$ 1,000.00|
|Jul||$ 995.70||$ 1,000.00|
|Aug||$ 995.70||$ 1,000.00|
|Sep||$ 995.70||$ 1,000.00|
|Oct||$ 995.70||$ 1,000.00|
|Nov||$ 1,037.93||$ 1,000.00|
|Dec||$ 1,037.93||$ 1,000.00|
|2016||Jan||$ 1,037.93||$ 1,000.00|
|Feb||$ 1,037.93||$ 1,000.00|
|Mar||$ 1,037.93||$ 1,000.00|
|Apr||$ 1,037.93||$ 1,000.00|
|Jan – Apr total||$ 16,184.60||$ 16,000.00|
|Owed to Landlord = $16,184.60 – $16,000.00 = $184.60|
We met with our paralegal and Shiplake today at the Landlord Tenant Board to challenge the 3% AGI, Above Guideline Increase. We were able to negotiate with Shiplake and lower the AGI to 2.6%.
Within the next two weeks or so anyone effected by the AGI will receive a legal notification letting them know the updated amount for their rent. You will have 60 days to pay the difference should you owe the diffrence and Shiplake will have 60 days to refund you if you have been paying the additional 3%.
I would like to thank the tenants that came with us to show their support. We could not have done this without you.
Wednesday February 24, 2016
9:00 AM Sharp
Landlord Tenant Board
79 St. Clair Avenue East
Join us as we have our voices heard challenging the 3% Above Guideline Increase (AGI).
Rent Tax Reduction Hearing
After discussions with our paralegal we will not be challenging the rent tax reduction. The difference between what the City of Toronto calculated and what Shiplake is asking is 0.012 %. We will be pulling out the “big guns” to fight the 3% AGI in February 2016 and feel that our efforts would go farther with the AGI.
Above Guideline Increase (AGI)
On March 30, 2015 Shiplake applied for an Above the Guideline Increase (AGI) of 3%.
We have hired a paralegal to represent us at the Landlord Tenant Board to help us challenge the AGI. We have a date for our hearing at the Landlord Tenant Board on February 24, 2016. We are in talks with our paralegal to ensure we will be ready to challenge the AGI. Once we have more information about the location and time we will let you know.
Below you can view a small portion of the application. The whole application is 433 pages. It consists of receipts and expenses for the work done at 45 Dunfield Avenue for the 18 month period ending April 1, 2015 as well as a list of the effected units. This is a public file and is available to whoever is interested. The Landlord is required by law to keep a copy on site for tenants to review.
45 Dunfield Docs.1 Application Document
City of Toronto Land Tax Rent Reduction
On January 1, 2015 The City of Toronto lowered the taxes paid by Shiplake for the property of 45 Dunfield Avenue. They calculated that tenants should get a .55% reduction in the rent payed to Shiplake.
Shiplake wants to lower the reduction based on the argument that the Ratio of Taxes to Revenue that the City used 20% is wrong and the correct amount is 15%.
The difference is reducing the .55% to .43%. Our paralegal has suggested that we reduce our rent by .55% but put a few dollars aside incase the application is successful.
We do not have a hearing date yet for this application at the Landlord and Tenant Board. Both applications may be heard at the same time some time in 2016.