Are you expecting your tenants to stick around a little longer? Wondering what the rules are for rent increases? We’ve pulled together the information you need to discuss rental increases in Ontario with your tenant!
What’s new for 2022
The Ontario rent increase guideline for 2022 is 1.2%, which means if the landlord provides a tenant at least 90 days proper written notice, they can increase the rent on a residential rental unit from $1,000 to $1,012. Like many jurisdictions, Ontario has implemented a Rent Freeze for 2021, passing legislation to freeze rent at 2020 levels due to the Covid-19 pandemic.
Rules for increasing rent
The landlord must give at least 90 days written notice of a rent increase before it takes effect. In most cases, the rent for a residential unit can be increased 12 months after:
The last rent increase
The start date of tenancy
Landlord Tenant Board Rent Increase Forms
Use the forms available from the Landlord Tenant Board to give proper notice. Don’t forget, if you do not give proper notice, or raise the rent by an improper amount, your tenant can dispute it within 12 months after the amount was first charged.
Due to the Covid-19 Pandemic, the Government of Ontario passed legislation freezing rent at 2020 levels for 2021. Most landlords of rented units covered under the Residential Tenancies Act cannot increase the rent in 2021.
Although the rent freeze ends on December 31, 2021, landlords can give notice 90 days prior to a rent increase taking effect in 2022.
Some exceptions also exist, where above guideline increases approved by the LTB prior to October 1, 2020 may be applied to rents in 2021. New above-guideline rent increases may still be approved by the LTB and may be applied to 2021 rents if they are for costs related to eligible capital repairs and security services, but not for extraordinary increases in municipal taxes and charges
2022 Rent Increase Guideline
The guideline is the maximum a landlord can increase most tenants’ rent during a year without approval of the LTB. This means most residential rents cannot go up by more than the rent increase guideline for every year. For 2022, the Ontario Rent Increase Guideline is 1.2%.
Exceptions can be granted by the LTB for approval to raise rent by more than the rent increase guideline. Guidelines only apply to the rent portion of the bill for care homes, but does not apply to the cost of services like nursing, food, or cleaning. New buildings, additions, and most new basement apartments that are occupied for the first time after November 15, 2018 are exempt from rent control.
Either tenants or landlords can contact the LTB and determine whether a unit is exempt from the rent increase guideline. To show a unit is exempt from rent control, a landlord should include an additional term in the lease stating such, and keep records that prove this is the case.