In Guide
Residential Ontario Rent Increase Guidelines
Residential Ontario Rent Increase
Many people need to be aware of Ontario’s Residential rent increase. For this reason, proper guidelines are needed to learn about the rise. Rent increase guidelines in Ontario help landlords earn more over time while protecting tenants from sudden spikes in rent.
However, staying current with these regulations can be challenging due to frequent changes. We’ve created an annual resource detailing the latest residential rent control information to simplify this.
This article discusses several key topics, which is enough for Residential Ontario Rent Increase guidelines.
Residential Tenancies Act (RTA) and Rent Increase Guidelines
Every year, the Ontario government tells us how much landlords can raise the rent without needing special permission. This is called the rent increase guideline. It’s the most a landlord can increase rent for most tenants without asking the Landlord and Tenant Board.
Rent Increase Rules
In most situations, landlords can raise the rent for a place to live if it’s been at least a year since they last raised it or since you moved in. They have to give you a written notice about the increase at least three months before it kicks in. You can get the right forms for this notice from the Landlord and Tenant Board.
If your landlord doesn’t give you the proper notice or you think they raised the rent too much, you can challenge it at the Landlord and Tenant Board within a year of when they first charged the new amount.
But in 2024, landlords can’t raise most tenant’s rent by more than 2.5% without asking the Landlord and Tenant Board first. This rule means most renters shouldn’t increase their rent by more than that amount each year.
The rule affects most types of homes that people rent, like houses, apartments, and condos. It also includes places like care homes, mobile homes, and communities where you rent the land.
On the other hand, these guidelines are not applicable for:
- New buildings, new parts of buildings, and most new basement apartments used for living that people started renting after November 15, 2018.
- When someone new moves in, and the landlord and tenant agree on the rent amount.
- Homes are provided by community housing.
- Care homes for long-term stays.
- Properties used for businesses.
Ontario Rent Increase Guideline in 2024
The Ontario Government has decided that for 2024, landlords can raise rents by up to 2.5%. This is the most they can increase rent for units not exempt from rent control or special applications to the Landlord Tenant Board.
The government notes that this increase is much lower than the average inflation rate of 5.9%. The law limits rent hikes to 2.5% per year. Landlords must give tenants written notice at least 90 days before raising the rent, and they can only increase it once every 12 months.
How To Calculate A Rent Increase
Your rent is $1,000 per month when you sign the lease on June 1, 2023. In 2024, the guideline allows for a 2.5% increase.
Therefore,
- an increase of 5% on $1,000 = $25.00
- $1,000 + $25.00 = $1,025.00
Your landlord would be allowed to legally raise your rent payment to $1,025.00 per month starting June 1, 2024, after 12 months.
Your landlord must give you written notice, using the correct Landlord and Tenant Board form, at least 90 days before June 1, 2024.
Maximum Allowable Rent Increase in Ontario
As it has been discussed, you can raise the rent by a maximum of 2.5% without needing approval from the Landlord and Tenant Board In 2024.
Generally, you can increase the rent if it’s been at least a year since the last increase or since the tenant moved in. You must give written notice at least 90 days before increasing the rent.
However, these rules don’t apply to care homes, new buildings, additions to existing buildings, and most new basement apartments that were first occupied for residential use after November 15, 2018.
Annual Rent Increase in Ontario
Usually, landlords can raise the rent once a year for existing tenants, but only by the guideline amount. They don’t need approval from the Landlord and Tenant Board for this.
The landlord needs to provide the tenant with written notice about any rent increase using the correct form at least 90 days before the increase goes into effect.
Notice of Rent Increase in Ontario
The rent increase guideline doesn’t apply to tenants in partially exempt units. Landlords in these cases can increase rent by any amount. Rent can be increased if 12 months have passed since the last increase or since the tenant moved in, or if the unit was reassigned within 12 months.
You need to give the tenant the Rent Increase Notice at least 90 days before you raise their rent.
There are many ways to give notice.
- You can personally deliver it to the tenant or to any adult residing in the rental unit.
- Leave it in their mailbox or where they normally get mail.
- Slide it under the door or through a mail slot.
- Send it by fax to their business fax machine or one at home.
- Use a courier service.
- Send it through the mail.
Rent Increase Percentage in Ontario
The rent increase guideline, limited to 2.5%, is determined using the Ontario Consumer Price Index, which gauges economic conditions and inflation annually from June to May. This process aims to prevent substantial rent hikes.
Let’s check the last 3 years rent percentage in Ontario Below:
| Year | Percentage(%) |
|---|---|
| 2024 | 2.5 |
| 2023 | 2.5 |
| 2022 | 1.2 |
| 2021 | 0 |
Legal Considerations for Rent Increase
As per landlord and tenant board, they can usually raise rent once a year, giving tenants a 90-day written notice. However, there are exceptions, like tenants in social housing.
Typically, landlords follow the yearly rent increase guideline from the Ministry of Municipal Affairs and Housing. For details, visit their website. Landlords might request a higher increase with LTB approval.
Units occupied after November 15, 2018, can have rent increased without limit.
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Conclusion
Understanding Ontario’s residential rent increase guidelines is crucial for both landlords and tenants. While these guidelines aim to balance the interests of landlords and tenants, staying informed about changes is essential.
FAQs (Frequently Asked Questions) about Rent increase in Ontario
In Ontario, landlords must provide tenants with a written notice of a rent increase at least 90 days before it takes effect.
No, landlords cannot increase rent retroactively in Ontario. Any rent increase must be effective from the date specified in the written notice provided to the tenant.
Generally, landlords can increase rent once every 12 months in Ontario, provided they give the tenant proper notice and follow the guidelines set by the Landlord and Tenant Board.
Yes, a new owner can increase rent in Ontario, but they must follow the same rules and guidelines as the previous owner. They cannot increase rent more than the allowable amount set by the Landlord and Tenant Board.
Ontario has no specific regulations regarding how much rent can be increased between tenants. However, landlords must adhere to the rent increase guidelines set by the Landlord and Tenant Board when increasing rent for existing tenants.
Landlords must apply to the Landlord and Tenant Board for permission to increase rent above the guideline. The Board considers factors such as the landlord's expenses and capital investments when approving above-guideline rent increases.
Landlords in Ontario can increase rent once every 12 months, provided they give tenants proper written notice at least 90 days before the increase takes effect.
The allowable rent increase per year in Ontario is determined by the rent increase guideline set annually by the Ministry of Municipal Affairs and Housing. In 2024, for example, the guideline allows for a maximum increase of 2.5%.
Landlords in Ontario can notify tenants of a rent increase by providing them with a written notice using the proper form from the Landlord and Tenant Board. The notice must be given at least 90 days before the increase takes effect.
