FAQ - Above the Guideline Increase (AGI)
What is an AGI?
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, 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.
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.
Why am I getting this increase in rent?
Skyline 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 has been done. We have applied to the Landlord and Tenant Board for an above guideline rent increase to help off set only some of those costs.
This says you have applied for the increase, what does that mean?
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.
When is the hearing, I wasn’t told about the hearing?
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.
This letter says I can see the application, where do I do that?
Your site office will have a copy of the application that you can view in the office, or you may purchase a copy on a disc for $5.00 to view at your leisure, when they become available.
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 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.
What happens when the Order is issued?
Once the order is issued you will receive a copy of the order and a letter letting you know 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 on 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.
What do I do if the amount awarded is something I can’t afford?
If you have concerns about the affordability of the increase please speak to your Resident Manager, your Property Manager, or you can call the Tenant Advocate at Skyline Living’s head office to discuss your concerns.