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!
The Ontario rent increase guideline for 2023 is 2.5%, 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 $1,025.
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:
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.
LTB Rent Increase forms include:
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 2023, the Ontario Rent Increase Guideline is 2.5%.
The guideline applies to most residential rental units covered by the Residential Tenancies Act, such as:
The rent increase guideline does not apply to:
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.
All new buildings and additions to existing buildings that are residentially occupied for the first time after November 15, 2018, are exempt from the provincial rent control guidelines. It is important to keep documents that will prove the exemption in the case where a dispute occurs or is requested by the tenant.