The rental market is a significant part of the economy, and its rise in recent years cannot be overlooked. The average rate of annual rent increase for 2022 was 10.9%, following the 1.6% average annual rent declines recorded for both 2021 and 2020. This three-year average rent increase of 2.6% is below the general rate of inflation in the economy over the same time period, according to Rentals.ca.
The higher rent prices may be a burden for renters. However, the slower rate of growth compared to the general rate of inflation may make it easier for them to keep up with the increases.
In all cases, the rental increase in the average rate of annual rent in 2022 shows the ongoing significance of the rental market in the economy.
This impressive growth in rents last year can be attributed to various factors. Including but not limited to a rebound from the pandemic’s impact, a surge in population growth leading to a growth in rental demand, and a decline in home buying due to the rising cost of living, as well as the new 2022 law forbidding non-Canadians to purchase any residential property.
It’s worth mentioning that the strong rent growth in 2022 took place despite a record-high number of apartment completions in the same year.
In Canada, landlords have the legal right to raise the monthly rent once per year. Although they are required to give their tenants notice of the increase at least three months in advance. The amount of the rent increase must be in accordance with the regulations set forth by the province or territorial authority. During the course of a tenancy with a fixed term, landlords are not allowed to increase the rent. Yet, this may happen if the tenancy agreement includes a clause that permits such an increase. Thus, It is important to be aware that certain types of rental properties, such as public housing and rent-controlled apartments, are subject to a specialized set of guidelines as well as certain exemptions. For example, in Ontario, the rent increase limit was 0% in 2021 due to the pandemic. However, in 2022, the limit increased to 1.2%, and for 2023, it is set at 2.5%.
Renters often face the challenge of making rent payments on time and ensuring they don’t affect their credit scores. Dwello offers a solution to this problem by providing a platform for paying rent in a disciplined manner, giving renters control over their finances. The platform integrates with Interac, ensuring that rent payments are always made on time. Furthermore, Dwello reports rent payments to Equifax for free, offering renters the opportunity to improve their credit scores.
In addition, Dwello provides a marketplace of financial products tailored to individual needs. Renters may earn exclusive financial rewards just by paying their rent on time. The platform partners with financial institutions to offer savings and benefits, including credit card and loan offers, insurance quotes, and access to the best mortgage rates from brokers.
Canadians will benefit tremendously from the partnership between Dwello and 8Twelve. It has changed the rental game. Dwello users will be offered financing facilities through 8Twelve, which will help to streamline the process of purchasing a property. Renters who become eligible for a mortgage through 8Twelve will be notified. This will help them improve their credit ratings and guarantee that they make their payments on time. The collaboration has also led to the development of a scheme known as a co-equity down payment, which enables tenants to buy homes with a more manageable initial deposit.
In conclusion, paying the rent with Dwello is a rewarding experience for renters. The platform offers timely payments, the opportunity to improve one’s credit score, and access to exclusive financial benefits and savings. Sign up on Dwello today and take advantage of this revolutionary platform!