Starting March 1, 2017, the LTB will hold case management hearings for applications filed by landlords who want to raise rent above the guideline because they have made capital expenditures (renovations, repairs, replacements or additions). The case management hearing will give both sides an opportunity to discuss, and possibly agree on, a fair rent increase.
During a case management hearing, a dispute resolution officer from the LTB will guide the landlord and tenants through the landlord’s application and explain how increases are calculated. Both sides will have an opportunity to raise issues and ask questions. Then the dispute resolution officer will try to help the two sides reach an agreement. If they reach an agreement, the dispute resolution officer will record the terms of the agreement in an order called a consent order.
If the application is not settled at the case management hearing, it will be scheduled for a full hearing with an adjudicator on another day.
All dispute resolution officers will follow a standard case management hearing structure. Landlords and tenants will receive information on how to prepare for the case management hearing together with their notice of hearing.
About “Above Guideline Rent Increase” Applications
In 2015-16, the LTB received 433 Applications for a Rent Increase Above the Guideline (Form L5) This number accounted for 0.6% of all applications filed by landlords.
In this type of application, a landlord can ask the LTB to allow a rent increase of more than the guideline for any of these reasons:
- The municipal taxes and charges for the residential complex increased by an “extraordinary” amount
- The utility costs for the residential complex increased by an “extraordinary” amount
- Operating costs for security services for the residential complex have been experienced for the first time or have increased
- Capital expenditure work was done in the residential complex.
The rent increase guideline applies to most private residential rental accommodation covered by the Residential Tenancies Act. The guideline is the most a landlord can increase the rent without applying to the LTB. The 2017 rent increase guideline is 1.5%.