Starting mid-December 2011, about 40% of Toronto tenant households are receiving automatic rent reduction notices in the mail. 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 needs to start paying a lower rent as early as December 31, 2011.
If you received this notice you qualify to automatically reduce your monthly rent as early as December 31.
Information in your notice can help walk you through the arithmetic to determine the amount by which you may reduce your rent. The rules on how to go about doing this are established by provincial regulation.
Under the Residential Tenancies Act, when a landlord’s property taxes are decreased by more than 2.49% from one year to the next, tenants may qualify for an automatic rent reduction without having to apply to the Landlord and Tenant Board.
The province of Ontario requires municipalities to send written notices to landlords in September and in December to tenants who are renting units in residential properties where the property tax decrease is more than 2.49%.
How will I know if I qualify for an automatic rent reduction?
If you receive a notice from the City, you may automatically lower your rent starting December 31, 2011.
The City of Toronto has an online database that has information related to property tax changes so you can check what has happened in your own buidling. For the most part, those living in residential rental properties where property taxes have declined by more than 2.49% can take the automatic rent reduction. Those living in social housing or in residential buildings built or first occupied for residential purposes after November 1, 1991 are exempt.
Please note: There are other exemptions. See the Residential Tenancies Act or contact the Landlord and Tenant Board for information about the complete list of exemptions.
Questions?
For more information about the Residential Tenancies Act and Automatic Rent Reduction, how to apply for a rent reduction if the property tax reduction is 2.49% or less, contact:
The Landlord and Tenant Board
416-645-8080
www.ltb.gov.on.ca
Frequently asked questions about the Automatic Rent Reduction Program.
For 24/7 assistance with understanding the tenant rent reduction notice call 311. Multilingual assistance is available through this service.
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