Really good analysis. At what level of increase might Marty’s LTB concern actually kick in? For all the munis doing 5-10% tax increases, are landlords using that to jack up rents? And if so, how much are they really getting away with, that can be linked to property tax increases?
I believe it would kick in over 3.75%. When Toronto raised taxes 9.5%, I believe the residential multi unit was capped at 3.75%, so as not to cause a potential rent increase.
I don't know enough about taxes to say how much it would increase rents, but based on reading online it sounds like in many cases for smaller landlords it wouldn't be worth the time or application fee to the LTB.
Really good analysis. At what level of increase might Marty’s LTB concern actually kick in? For all the munis doing 5-10% tax increases, are landlords using that to jack up rents? And if so, how much are they really getting away with, that can be linked to property tax increases?
I believe it would kick in over 3.75%. When Toronto raised taxes 9.5%, I believe the residential multi unit was capped at 3.75%, so as not to cause a potential rent increase.
Ottawa could certainly consider the same, especially as older multi unit buildings already pay 1.4x the current property tax rate (https://unpublished.ca/opinion/alex-cullen-council-must-end-property-tax-unfairness-for-multi-res-tenants). Add in lower average servicing costs and high development charges and I think it's worth considering.
I don't know enough about taxes to say how much it would increase rents, but based on reading online it sounds like in many cases for smaller landlords it wouldn't be worth the time or application fee to the LTB.