A tenant in a building first occupied in 1998 pays $2,000 a month, and 12 months have passed since her last increase. She agrees in writing to an increase taking effect in December 2026 in exchange for the landlord installing central air conditioning, a capital expenditure. The 2026 guideline is 2.1%. What is the highest rent the agreement may set?
Correct Answer
C) $2,102, the guideline plus 3%
Section 121(3) caps an agreed increase for a capital expenditure or new service at the guideline plus 3% of the previous lawful rent: 2.1% + 3% = 5.1% of $2,000, or $102, for a maximum rent of $2,102. The agreement must be on the Board's form, and the tenant may cancel it within five days of signing (s. 121(2), (4)).
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Previous Question
A status certificate delivered to a buyer omits a $4,000 special assessment that the board levied against the unit after the current budget date to increase the reserve fund. The buyer relied on the certificate and closed. Under the Condominium Act, 1998, what is the result?
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A tenant in a triplex built in 1975 pays $1,850 a month; the last increase took effect on January 1, 2026. The landlord wants the next increase to take effect on January 1, 2027. The guideline is 2.1% for 2026 and 1.9% for 2027. What is the maximum new rent without Board approval?