2024- 1997 Rent Increase Guideline
The annual Rent Increase Guideline is a calculation based on the Ontario Consumer Price Index by Statistics Canada and applies to most private residential rental accommodations covered by the Residential Tenancy Act 2006.
https://www.ontario.ca/laws/statute/06r17/v8
Ontario Capping Rent Increases Below the Rate of Inflation
The guideline does not apply to:
· Vacant residential units
· Residential units first occupied on or after Nov. 1, 1991
· Social housing units
· Nursing homes
· Commercial property
Timing of Rent Increases: Typically, rent for a unit can be increased if either 12 months have elapsed since the tenant first moved in or 12 months have passed since the last rent increase. Landlords must provide tenants with written notice of the rent increase at least 90 days before it takes effect.
Calculation of the Guideline – The Rent Increase Guideline is calculated under the Residential Tenancies Act, 2006, and is based only on the Ontario Consumer Price Index which is calculated monthly by Statistics Canada. The 2022 Rent Increase Guideline is calculated by averaging the percentage increase in the Ontario Consumer Price Index during the previous 12 months from June 2020 to May 2021.
Sample Rent Increase Calculation – The monthly rent of an apartment is $1,000 beginning August 1, 2021. With proper written 90-day notice to the tenant, the landlord could lawfully increase the rent 12 months later in August. 1, 2022.
Example:
· The guideline for 2014 is 0.8 percent
· The rent increase is 0.8 percent of $1,000 = $8.00
· Therefore, the new rent on Aug.1, 2014, could be up to $1,008.00 ($1,000 + $8.00)
When entering into an Agreement of Purchase & Sale for a building, it’s imperative to ensure that the contract explicitly addresses the Last Month Interest (LMI). While the absence of LMI clauses may not directly endanger the deal, whether it pertains to a small or large transaction, it can result in substantial costs, potentially running into thousands of dollars. To safeguard against such complications, it is crucial to verify that LMI payments are either current or accounted for in the disbursements during the closing of the transaction. Failure to ensure the timely payment of LMI charges upon acquiring the building means assuming liability for them as the new owner. Therefore, diligence in addressing LMI concerns is essential to mitigate risks and ensure a smooth transition of ownership. This diligence may be as simple as knowing the LMI will not be paid. Ensuring diligence in this matter can be as straightforward as confirming that Last Month Interest (LMI) payments will not be covered. It’s essential to acknowledge this fact explicitly within the Agreement of Purchase & Sale (APS). By addressing this aspect in the APS, potential complications related to LMI can be effectively managed and mitigated.
Rent Increase Guideline 1997 – 2024
- 2024………….2.5%
- 2023………….2.5%
- 2022…………1.2%
- 2021…………0.0%
- 2020…………2.2%
- 2019…………1.8%
- 2018…………1.8%
- 2017…………1.5%
- 2016…………2.0%
- 2015…………1.6%
- 2014…………0.8%
- 2013…………2.5%
- 2012…………3.1%
- 2011…………0.7%
- 2010…………2.1%
- 2009…………1.8%
- 2008…………1.4%
- 2007…………2.6%
- 2006…………2.1%
- 2005…………1.5%
- 2004…………2.9%
- 2003…………2.9%
- 2002…………3.9%
- 2001…………2.9%
- 2000…………2.6%
- 1999…………3.0%
- 1998…………3.0%
- 1997…………2.8%
According to the regulations outlined in the Residential Tenancies Act, landlords have the prerogative to adjust the rent for existing tenants annually, with certain limitations. This adjustment is typically restricted to once per year and must adhere to specific guidelines established by the legislation. The guideline serves as a pivotal framework governing rental increases, ensuring fairness and stability within the rental market.
Applicable to the majority of private residential rental units falling under the purview of the Residential Tenancies Act, the guideline sets forth parameters within which landlords must operate when proposing rent increases. It serves to protect tenants from exorbitant or arbitrary hikes in rental rates, fostering a balance between the interests of both landlords and tenants.
By limiting the scope of permissible rent increases, the guideline promotes predictability and affordability for tenants, thereby contributing to the overall stability of the housing market. Landlords are obligated to adhere to these guidelines, fostering a transparent and equitable relationship between landlords and tenants.
Moreover, the guideline represents a crucial safeguard against exploitative practices, ensuring that tenants are not duly burdened by excessive rental escalations. This regulatory measure plays a vital role in safeguarding tenants’ rights and promoting housing affordability, thereby contributing to the broader social welfare.
In summary, the guideline delineates the permissible parameters within which landlords may adjust rents for existing tenants, underscoring the importance of fairness, transparency, and stability in the residential rental sector. It embodies the legislative intent to strike a delicate balance between the interests of landlords and tenants while upholding principles of equity and social responsibility in housing provision
CMHC Residential Rent Increases
https://www.ontario.ca/page/residential-rent-increases
For more information on rent increase, please contact the Landlord and Tenant Board at 416-645-8080 or 1-888-332-3234