Rent Reduction notices in the mail for 136,000 Toronto households | People
The City of Toronto is announcing news that can make the Canada Post carrier very popular. Rent reduction notices are in the mail now and this will effect a significant amount of Toronto households.
Almost 30 per cent, or 136,000 households, of Toronto tenant households will receive notices this week that mean they can automatically reduce their rents. All tenants should check their daily mail. If there is a rent reduction notice, tenants should take action. This is because, under provincial legislation the property taxes on their buildings have been lowered by more than 2.49 per cent.
Addressed to the Current Tenant, clearly marked Rent Reduction Notice Enclosed, and in an envelope with the City of Toronto logo, these letters contain all the customized information a tenant requires to start paying a lower rent as early as December 31, 2012.
Ontario's municipalities are required to send notices about the tax decrease and resulting rent reduction to landlords of affected buildings by September 15 and to tenants by December 15. Notices are based on assessment information provided by Municipal Property Assessment Corp. (MPAC), an independent organization established by the provincial government.
The rent reduction provisions in the Residential Tenancies Act apply only to private rental buildings occupied as residences before November 1, 1991. A number of other exemptions apply, including social housing and housing owned by educational institutions.
Property taxes on some rental properties are declining because the City decided a number of years ago to more closely align business and residential property tax rates. This results in a lowering of business rates. Rental properties are considered to be businesses.
The province sets out the rule that determines the amount of a rent reduction and every situation will be different. As an example, a building with seven or more units, based on the average tax decrease, a typical rent reduction for a two-bedroom apartment might be about $9 a month.
Tenants who have questions can contact 311, 24 hours a day, 7 days a week. This is a multilingual service.