The guideline is the maximum a landlord can increase most tenants' rent during a year without the approval of the Landlord and Tenant Board.
2023 RENT INCREASE GUIDELINE - 2.5%
The following chart illustrates yearly rent increases, in Ontario, from 1991 to 2022.
WHO RENT CONTROL APPLIES TO
For most tenants, the rent can't go up by more than the rent increase guideline for every year. The guideline applies to most private residential rental units covered by the Residential Tenancies Act.
This applies to most tenants, such as those living in:
- rented houses, apartments, basement apartments, and condos
- care homes
- mobile homes
- land lease communities
The guideline does not apply to certain types of units including:
- vacant residential units
- community housing units
- nursing homes
- commercial properties
Social housing is covered by the Residential Tenancies Act, but has different rules regarding rent control and rent increase notices.
- In some cases, landlords can apply to the Landlord and Tenant Board for approval to raise the rent by more than the rent increase guideline.
- In care homes (such as a retirement home), the rent increase guideline only applies to the rent portion of your bill but does not apply to the cost of services like nursing, food, or cleaning.
- New buildings, additions to existing buildings, and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018 are exempt from rent control.
RULES FOR RENT INCREASE
In most cases, the rent for a residential unit can be increased 12 months after either:
- the last rent increase
- the date the tenancy begins
The landlord must give the tenant written notice of a rent increase at least 90 days before it takes effect.
HOW THE GUIDELINE IS CALCULATED
It is calculated using the Ontario Consumer Price Index, a Statistics Canada tool that measures inflation and economic conditions over a year. Data from June to May is used to determine the guideline for the following year.
A SAMPLE CALCULATION
The monthly rent was last increased to $1,000 on June 1, 2019. The guideline for 2020 is 2.2%. Therefore:
- an increase of 2.2% on $1,000 = $22.00
- $1,000 + $22.00 = $1,022.00
The landlord could lawfully increase the rent payment 12 months later on June 1, 2020 up to $1,022.00 per month, with a written notice provided to the tenant at least 90 days before June 1, 2020.
RENT FREEZE FOR 2021
The Government of Ontario has passed legislation to freeze rent at 2020 levels. This means that rents will not increase in 2021 for the vast majority of rented units covered under the Residential Tenancies Act.
While the rent freeze will end on December 31, 2021, landlords can give proper 90 days' notice beforehand for a rent increase that takes effect in 2022.
- Above guideline increases approved by the Landlord and Tenant Board prior to October 1, 2020 may be applied to 2021 rents. New above guideline increases may still be approved by the Landlord and Tenant Board and may still be applied to 2021 rents if they are for costs related to eligible capital repairs and security services, but not if they are for extraordinary increases in municipal taxes and charges.
- Tenants and landlords can still agree on rent increases in exchange for an extra service or facility (for example, air conditioning or parking).