Landlords can increase rents in Ontario next year
Published November 23, 2023 at 11:22 am
Renters working on a tight budget should take note — Ontario landlords can increase your rent in January.
Each year the Province of Ontario sets the residential rent increase guidelines and as in 2023, landlords can increase rents by 2.5 per cent in 2024.
Generally, landlords can raise rents every 12 months but they need to give tenants written notice at least 90 days before the bump up. The rate can be increased either 12 months after the last increase or 12 months after you moved in.
The 2.5 per cent increase is based on 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.
Generally, 2.5 per cent is the maximum a landlord can increase most tenants’ rent in 2024 without the approval of the Landlord and Tenant Board. Landlords can apply for what is known as an above-guideline rent increase.
However, if you live in a unit built after 2018, the guideline doesn’t apply and landlords can increase your rent by any amount.
Apartments, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after Nov. 15, 2018 are exempt from rent control.
The guideline also doesn’t apply to community housing units, long-term care homes and commercial properties. Social housing is covered by the Residential Tenancies Act, 2006, and has different rules regarding rent control and rent increase notices, according to the provincial government.
Also, if a rental unit becomes vacant, a landlord can increase the rent by any amount for the next potential tenant. The landlord and new tenant would need to agree on the new rent amount.
As a tenant or a landlord, you can contact the Landlord and Tenant Board to determine whether a unit is exempt from the rent increase guideline.
The Landlord and Tenant Board also deals with issues between renters and property owners. But prepare for a wait, as of May this year, there was a 38,000-case backlog.
For more information on residential rent increases, see the Ontario government website here.insauga's Editorial Standards and Policies advertising