Landlord Wins Above Guideline Rent Increase for Capital Expenditures: Kane v Tenants 2021
Landlord granted 6.81% rent increase above guideline to cover capital costs at Orillia complex
Summarized by RentZenLast updated: July 26, 2024
Case Summary
206 Barrie Road, Orillia, ON L3V2R3
Decision in favor of
landlord
Balance Owed
-
Dispute Categories
Agree with the ruling?
Timeline
Application Date
Jan 2019
Hearing Date
Jun 2021
Order Date
Aug 5, 2021
Dispute Summary
Landlord applied for an order to increase the rent above the guideline due to capital expenditures. The application was resolved by written hearing, and the Board received submissions from the Landlord and Tenant Ryan Sypher.
Determinations
- Landlord justified rent increase above guideline due to capital expenditures
- Maximum rent increase above guideline is 6.81% for capital expenditures
- Retaining wall is part of residential complex property that Landlord must maintain
- Weighted useful life for capital expenditures is 25 years
Case Study
The Landlord justified a rent increase above the guideline because of capital expenditures. The Board found that the retaining wall is part of the residential complex property that the Landlord is obligated to maintain, and the Tenant did not provide evidence that the wall was not in disrepair. The weighted useful life for the capital expenditures is 25 years.
Arguments and Actions
Tenant
Actions
Tenant Sypher states that the retaining wall is a non-residential portion of the complex and was replaced due to an order by the City as a condition of sale, and that it is not attached to the dwelling and was not damaged by residents, and therefore should not be granted.
Decision Summary
The Landlord may increase the rents charged by 6.81% for the units set out in Schedule 1, with the increase to be taken in three stages over the period from December 1, 2019 to November 30, 2022. The increase may be taken in addition to the annual guideline. If a tenant remains in the unit after the expiration of the 25-year weighted useful life for the capital expenditures, the rent will be reduced.
Adjudicator Details
LTB Member
Total Orders
333
Landlord Favorable
88.6%
Tenant Favorable
0.3%
Mutual Agreement
11.1%
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