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Residential Rent Increase Guideline – Ontario 2021

Rent Increase Guidelines Ontario

The Landlord and Tenant Board made sure that landlords are following and applying the guidelines before increasing their rent.

Residential Rent Increase Guideline – Ontario 2021

Did you know that you can’t increase your rent automatically?

The Landlord and Tenant Board made sure that they have guidelines for a rent increase and this guideline is the maximum a landlord can increase most tenants’ rent during a year without the permission of the Landlord and Tenant Board.

For most tenants, your rent can’t go up by more than the rent increase guideline consistently.

The rule applies to most private rental units covered by the Residential Tenancies Act. This applies to most tenants, for example, those living in:

  • Rented houses, Lofts/Apartments, Basement Apartments and Condominiums (see special cases for recently involved units)
  • Care homes, Mobile homes, Land rent communities

The rule doesn’t have any significant bearing on specific kinds of units including:

  • Empty residential units, Local area lodging units, Long haul care homes, Business/Commercial properties

Social housing is covered by the Residential Tenancies Act, yet has various guidelines in regards to rent control and rent increase takes note.

What are the exemptions?

Sometimes, property managers can apply to the Landlord and Tenant Board for endorsement to raise your rent by more than the Rent Increase Guideline.

In care homes, (for example, a retirement home), the rent increase guideline just applies to the rent part of your bill however doesn’t have any significant bearing on the expense of administrations like nursing, food or cleaning.

New structures, that are in addition to existing structures and most new basement apartments that are occupied for the first time involved interestingly for residential purposes after November 15, 2018 are exempted from rent control.

How to calculate the guideline?

It is determined utilizing the Ontario Consumer Price Index, a Statistics Canada tool that measures inflation and economic conditions over a year. Information from June to May is utilized to decide the guideline for the next year.

Sample computation of a rent increase

Your month to month rent is $1,000 when you sign a rent on June 1, 2021. The rule for 2022 is 1.2%. Accordingly:

An increase of 1.2% on $1,000 = $12.00

$1,000 + $12.00 = $1,012.00

Your landowner could lawfully increase your rent payment a year after the fact, on June 1, 2022 up to $1,012.00 each month

Your landowner would have to give you notice no less than 90 days before June 1, 2022.

 

About Author

Julie Camacho, a product specialist of Mi Property Portal, an 𝐀𝐥𝐥-𝐢𝐧-𝐎𝐧𝐞 software that will streamline your entire residential property management business. This software is built for small to mid-sized Canadian property management companies, individual landlords, and investors.
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