Few tenants realize that the new Harmonized Sales Tax (HST) will have profound effects on the rent they pay, the utilities they pay on top of their rent and and the other services that landlords provide.
Those rebate cheques that start coming this summer may not look so good.
Earlier this week, Premier McGuinty announced that Basic Rent will be exempt from the HST. What he did not say was that Tenants who pay for hydro, gas, heating oil etc. not included in their rent will pay the HST for these services . These tenants don't escape the HST. In fact few tenants will avoid it since we all will pay it in cable and telephone bills.
Landlords will also have to cope with many extra expenses not directly covered in rental payments that directly affect payments. The Provincial government sets the yearly increase of up to 3% each each for all Ontario tenants but what will they do if that doesn't cover their landlord's costs. Again. If you are a tenant, you should you read the article by clicking here.
This is a complicated time to be a tenant or a landlord. Many aging buildings are 40 or 50 years old and pressure is on to make repairs while competing for tenants. The HST is a monkey wrench that many landlords and tenants won't see until it hits them in the pocketbook.
