COST OF AN APARTMENT WINDOW INSTALLATION ON A SITTING TENANT.
NEW WINDOW INSTALLATION
Summary of facts-
Benefit 1 to the Landlord
Cost of windows $265,213.81 divided equally against all apartment sizes (152 Units) from Bachelor, One Bedroom and Two bedrooms. The majority being one bedroom apartments.
$265,213.81 divided evenly by 152 Units = $1744.83 per unit cost.
On average the rent being $900.00 per month in 2004
Landlord and Tenant Board granted the landlord an increase of 2.36% for each sitting tenant forever under the (Link) Tenant Protection Act 1997
$900.00 plus 2.36% = $21.24 for the first year of increase and compounds over the following years based on the annual rental increase guideline.
(Link) List of Ontario Yearly Rental Increase Guideline 1991-2015
Increase to take effect April 1, 2004 till now April 2015 at $21.24 per month compounded over the years = $3404.88 will be received by the landlord re the increase to the sitting tenant versus the actual cost of $1744.83.
The tenant in this case will have paid twice through the increase awarded for the new windows and the landlord's contribution will have been zero to the cost.
Benefit 2 to the Landlord
A second benefit to the Landlord has been the increase in market value of the apartment building by installing the new windows. How much was gained in property value for resale?
Benefit 3 to the Landlord
The third benefit to the landlord will be the reduction in the heating costs of the building by installing the new windows.
Final analysis for this case
Based on the above calculations the tenant would have fully paid for their share of the landlord's window installation by July 2010. At this point the increase granted for the capital expenditure should have been stopped and the above guideline increase reduced from the tenant's rent. The tenant still would have paid for the total cost of the capital expenditure and the landlord would have contributed zero. The question here is what percentage should the landlord be allowed to fairly claim and for what time period for capital expenditures to maintain his/her building in good condition. (half the cost, a third the cost ?) Currently the landlord is allowed to claim 100% of capital expenditures. If the landlord was allowed to claim only half the cost (tenant's cost reduced from $1744.83 to $872.04) the tenant would have paid their share with 2.36% Above Guideline Increase by June 2008. As this is not the case the tenant is still paying and will go on paying until they vacate the apartment.
Summary of facts-
- Case Year 2004
- Hearing Date - March 23, 2004 File Number TSL-57270
- Capital expenditure cost claimed for windows $265,213.81
- Weighted life of windows issued by the Landlord and Tenant board. 15 Years
- Above Guideline Increase asked and received 2.36% increase in monthly rent from each tenant.
- First date for increase to take effect April 1, 2004
- Total Units 152
Benefit 1 to the Landlord
Cost of windows $265,213.81 divided equally against all apartment sizes (152 Units) from Bachelor, One Bedroom and Two bedrooms. The majority being one bedroom apartments.
$265,213.81 divided evenly by 152 Units = $1744.83 per unit cost.
On average the rent being $900.00 per month in 2004
Landlord and Tenant Board granted the landlord an increase of 2.36% for each sitting tenant forever under the (Link) Tenant Protection Act 1997
$900.00 plus 2.36% = $21.24 for the first year of increase and compounds over the following years based on the annual rental increase guideline.
(Link) List of Ontario Yearly Rental Increase Guideline 1991-2015
Increase to take effect April 1, 2004 till now April 2015 at $21.24 per month compounded over the years = $3404.88 will be received by the landlord re the increase to the sitting tenant versus the actual cost of $1744.83.
The tenant in this case will have paid twice through the increase awarded for the new windows and the landlord's contribution will have been zero to the cost.
Benefit 2 to the Landlord
A second benefit to the Landlord has been the increase in market value of the apartment building by installing the new windows. How much was gained in property value for resale?
Benefit 3 to the Landlord
The third benefit to the landlord will be the reduction in the heating costs of the building by installing the new windows.
Final analysis for this case
Based on the above calculations the tenant would have fully paid for their share of the landlord's window installation by July 2010. At this point the increase granted for the capital expenditure should have been stopped and the above guideline increase reduced from the tenant's rent. The tenant still would have paid for the total cost of the capital expenditure and the landlord would have contributed zero. The question here is what percentage should the landlord be allowed to fairly claim and for what time period for capital expenditures to maintain his/her building in good condition. (half the cost, a third the cost ?) Currently the landlord is allowed to claim 100% of capital expenditures. If the landlord was allowed to claim only half the cost (tenant's cost reduced from $1744.83 to $872.04) the tenant would have paid their share with 2.36% Above Guideline Increase by June 2008. As this is not the case the tenant is still paying and will go on paying until they vacate the apartment.
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