Hi Phil,
You are obliged to pay the annual
Guideline rent increase amount (1.2%), but you do not have to pay any of the
"above" the guideline portion of the rent increase until you have the hearing at the Landlord and Tenant Board (LTB), and the final amount of the above guideline rent increase is decided.
Just FYI, this is covred in Quesiton 15 of the
"So You Just Received your first Above Guideline Rent Increase" guide, which you can find a link to here:
https://www.torontorentersforum.com/index.php?action=tportal;sa=download;dl=get5Also, just so you know, on your N1 ("Notice of Rent Increase") form, your landlord is only obliged to inform you of 3% of the increase that they are applying for. Once you go to the hearing you may find that they are actually asking for more than 3%. (Above Guideline Rent Increases are limited to 3% per year, but if your landlord can justify, for example, a 9% above guideline rent increase, and if they win their case at the LTB, then you and your neighbours could be facing 3% for upto three consequtive years (i.e., in 3% in 2022, 3% in 2023, and 3% in 2024). And unfortunately this misrepresentation is legal, so there is nobody to complain to about it.
You and your neighbours should ask your landlord for a copy of the landlord's "application" (also called the "Landlord's Supporting Documentation"), so you can see exactly what expenses (and how much $$) your landlord is actually asking for, and so you can start preparing to defend yoursleves at the LTB.
This website (Toronto Renters Forum) has more information about Above Guideline Rent Increases, here:
https://www.torontorentersforum.com/index.php?page=agis- William