Ontario Barrister and Solicitor Practice Exam

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What option does a landlord have if they want to increase rent for the summer due to increased operational costs?

  1. Immediately increase rent without notification

  2. Apply for an AGI for extraordinary operating costs

  3. Reduce operating hours to save costs

  4. None, they cannot increase the rent

The correct answer is: Apply for an AGI for extraordinary operating costs

Applying for an AGI (Annual General Increase) allows a landlord to increase rent to cover extraordinary operating costs, such as a significant increase in property taxes or utilities. Option A is incorrect because landlords are legally required to give their tenants proper notice of any rent increases. Option C is incorrect because reducing operating hours would not directly address the issue of increased operational costs. Option D is incorrect because landlords do have the option to increase rent through the AGI process as outlined in the Residential Tenancy Act.

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