It is a well-known fact that rent increase is more often than not a tricky business. The landlord may be accused of being greedy even when there are rational reasons for doing so. On the other hand tenants never like the idea of rent increase because in most cases they can’t afford it and also this amount of increase can ruin their bottom line. So what is the most appropriate way? First remember that residential and commercial properties have different laws in Ontario. As a landlord or a tenant, knowing these different laws can be essential for you. Consult a paralegal Toronto expert to be more aware of the laws.
The Laws relating to residential and commercial properties
A commercial lease is in fact an agreement between informed and experienced people. Therefore, the act which is governing commercial releases treats both sides equally which means no one will benefit from extra rights. In most cases, both landlords and tenants in commercial properties are experienced people so there is less governmental protection available to them. Some of them even hire lawyers or real estate professionals to observe both sides’ activities and if necessary, file a case in a small claims court in Toronto.
Both sides can discuss the terms and conditions of a lease and talk about rental issues together. Although there are a small number of guidelines in Ontario regarding commercial rent increase, rents are determined by the market rates as well as the negotiations between both sides. When all the details concerning the rent increase are set, its terms can change the guidelines contained in the Act.
Though a landlord can raise the rent beyond the terms and conditions of the lease, s/he should wait till the end of the lease. Moreover, in most cases a tenant can renew the lease for a prearranged amount of rent. Because it can protect tenants from unreasonable rent raise or evictions by landlords, it seems fair enough.
Pay attention if there is no lease and you as a landlord decide to increase the rent, the tenant is not forced to pay the rent increase, and s/he may even want to end the lease. The only thing they should do is to notify you that they are leaving and pay the initial rent for the last month. If it is possible, you can gain help form a paralegal Toronto expert.