Refusing Rent Hikes: Legal Steps for Landlords
Rental increases are a normal part of a lease agreement and should be expected by tenants. When tenants react badly to annual rent increases, it can put a spanner in the works for landlords. In some cases, these issues can be discussed and overcome before they escalate. Unfortunately, there may be instances where tenants refuse the increase and withhold rental payments as a result.
As experts in property law, you can count on RCS Law to guide you through challenges with tenants with certainty and professionalism. If you have followed all the correct legal steps when your tenant refuses rent hikes, you are fully within your rights to pursue eviction. Understanding tenant rights vs landlord rights during eviction is key to success, and working with a team that cares minimises your stress.
Your Responsibilities as a Landlord
When you rent out your home, you are legally obligated to act in accordance with the Rental Housing Act and the Prevention of Illegal Eviction Act (PIE). These protect your rights and the rights of your tenant, and ensure fair and lawful processes at every stage. It is easy to have an emotional reaction or let your frustration take hold when dealing with defaulting tenants. Remember, this will do you more harm than good.
The Legal Steps You Should Follow
- Go over your lease agreement: Think of your lease as the compass that guides your relationship with your tenant. Your lease agreement should clearly state when rent increases may occur, how much the increase can be, and whether it is a fixed percentage or based on market-related adjustments. It also needs to mention the notice period you are required to follow.
- Ensure the increase is justifiable: More often than not, tenants fight against rent increases they feel are unreasonable. Ensure that the increase you are imposing is aligned with market-related rates and that it is fair based on rising expenses or improvements made to your home/property.
- Provide Written Notice: Landlords are legally required to provide tenants with proper written notice ahead of a rent increase. In most cases, this would be one or two calendar months’ notice. The written notice must also state the new rental amount and the effective date of the change.
- Attempt Amicable Resolution: It is always better to resolve matters amicably before going the legal route. You might be able to come to an agreement that works for both parties. This could include a phased increase, a reduced increase, or delaying the increase for a few months.
- Approach the Rental Housing Tribunal: This action can be taken by you or the tenant if an agreement cannot be reached, and it is free and accessible. The Rental Housing Tribunal seeks to find a resolution by reviewing the rental increase. They check if the proposed increase is fair and consider lease terms and market rates. They may also issue a legally binding rule.
What if the Tenant Still Refuses?
Are you dealing with a non-paying or problem tenant? Evict legally with our help. If the rent increase is lawful and your tenant refuses to pay the newly increased amount, you may cancel the lease. You can contact RCS Law to start eviction proceedings. At no point should you take matters into your own hands – this could have dire consequences and set you back further.
CONTACT US or complete and submit our Eviction Services Client Interest Form.