Area of Law: Landlord and Tenant
Answer # 435
Rent increases and maximum rentRegion: Ontario Answer # 435
In 2022, the maximum most landlords can raise a tenant’s rent without the approval of the Landlord and Tenant Board (LTB) 1.2%.
Generally, a tenant’s rent can only be increased once every 12 months, and the landlord must give the tenant written notice of a rent increase at least 90 days before it takes effect.
Who does the rent increase apply to?
The increase applies to most residential rental accommodations covered by the Residential Tenancies Act, including:
- single and semi-detached houses,
- care homes,
- mobile homes,
- land lease communities, and
- basement apartments
Who does the rent increase not apply to?
It does not apply to rental units in:
- buildings occupied for the first time after November 15, 2018
- applies to units that are newly built, additions to existing buildings, and new basement apartments. Current tenants with tenancy agreements or leases entered into on or before November 15, 2018 will continue to be subject to the rent control rules,
- social housing units,
- vacant residential units,
- long-term care homes, or
- commercial property.
How are rent increases determined?
For most tenants, rent cannot be increased by more than the Ontario yearly rental increase guidelines. However, landlords may apply to the province’s Landlord and Tenant Board for an increase above the annual limit. The guidelines are calculated using the Ontario Consumer Price Index, which measures inflation and economic conditions over a year.
When can a landlord raise the rent above the guidelines?
A landlord can make an application to the Board to approve a rent increase above the guideline if:
- a landlord’s costs for municipal taxes or utilities (heat, water and electricity combined) have increased an exceptional amount,
- a landlord’s operating costs related to security services increased, or
- the landlord had eligible capital expenditures, meaning extraordinary or significant renovations, repairs, replacements or new additions to the building or to individual units.
If a landlord charges illegal rent, the tenant may be able to get a rebate by applying to the Landlord and Tenant Board. This includes cases where the landlord charges more than the maximum amount, or raises the rent more than once every 12 months. To apply for a rebate, the tenant will need to fill out forms requesting a hearing and file them with the Board office together with a small application fee. Tenants who need assistance making an application should contact a local legal clinic.
For additional information about maximum rent and rent increases in Ontario, visit ontario.ca.
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For legal advice on rent increases, and assistance with applications to the Landlord and Tenant Board, contact our preferred Landlord and Tenant experts:Caryma Sa'd, Lawyer & Notary Public
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