Understanding Above the Guideline Rent Increases

An AGI is an Above Guideline Rent Increase which is applied for by a landlord that has completed eligible capital expenditures. The expenditures must be for the residential complex or one or more of the rental units within it, and include significant renovation, repair, replacement, or new addition and the expected benefit of which, should extend for at least five years. The Residential Tenancies Act has strict provisions and applications on when an AGI can be applied for. 

There are stringent requirements that include proof of expenditure and valid reasoning for a rent increase. The landlord must advocate to the Landlord and Tenant Board to get permission to have an above guideline rent increase in compliance with the evidence submitted. 

Please note that Ontario is the only province with AGI legislation in place to protect tenants from unfair rent increases or for work that is substantially cosmetic in nature. A landlord can only apply for a small portion of the total cost of the work that was completed. 

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Skyline Living has completed a number of capital improvements, replacements, and upgrades in your building or property such as new windows and doors, elevator modifications, new driveway or parking lots, new boilers, or roof. The various projects may differ at your actual property, but these are some examples of the type of work that has been done. We have applied to the Landlord and Tenant Board for an above guideline rent increase to help offset only some of those costs. 

We have filed an Above Guideline Rent Increase application with the Landlord and Tenant Board for a portion of the costs of the capital improvements mentioned above. The Landlord and Tenant Board will hold a hearing to determine if we are eligible for an above guideline rent increase and what amount, if any, we may be awarded. 

It can take 18 months to 2 years to get a hearing date. Once a hearing date is set, the Landlord and Tenant Board will send the Notice of Hearing to all the tenants, they can attend the hearing if they wish. You can attend the hearing to have any further questions answered. 

Your site office will have a copy of the application that you can view in the office, we can provide you with an electronic copy to view in the privacy of your home, or you can request a printed copy for no charge. 

This letter says I don’t have to pay the above guideline amount at this time. How does that work? 

You can send a letter into Skyline Living that you only want to pay the guideline amount of rent until after the hearing and an order is issued by the Landlord and Tenant Board. However, many tenants find it helpful to pay the amount of the increase applied for so that they don’t need to pay the balance owing in the future. 

Once the order is issued, you will receive a copy of the order and a letter informing you what amount, if any, was awarded. If you opted to not pay the above guideline amount at the beginning, you may have a balance owing which you will be informed of in the letter. If the order is granted, then you will have to pay the entire balance owing within 60 days. If you opted to pay the increase, then, depending on the amount awarded, you may have a credit/ refund owing to you. 

If you have concerns about the affordability of the increase please speak to your Resident Manager, your Property Manager, or you can contact the Tenant Support Team to discuss your concerns.