Rent Increase Guideline 2021

Friday Oct 30th, 2020


Rent Increase Guideline 2021

Rent increase guideline

The guideline is the maximum a landlord can increase most tenants’ rent during a year without the approval of the Landlord and Tenant Board.


Rent increase guideline for 2021

Notice: The government has announced its intention to bring forward legislation to freeze rent at 2020 levels. Updates will be published on


Who it applies to

The guideline applies to most private residential rental units covered by the Residential Tenancies Act.

The guideline does not apply to:


  • vacant residential units
  • social housing units
  • nursing homes
  • commercial properties

This guideline also does not apply to new buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018.


When can rent be increased

In most cases, the rent for a unit can be increased 12 months after:


  • the last rent increase
  • a tenant first moves in

A tenant must be given written notice of a rent increase at least 90 days before it takes effect.


How the guideline is calculated

It is calculated using 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.


A sample calculation


Your monthly rent was increased to $1,000 on June 1, 2019. The guideline for 2020 is 2.2%. Therefore:


  • an increase of 2.2% on $1,000 = $22.00
  • $1,000 + $22.00 = $1,022.00

Your landlord could lawfully increase your rent payment 12 months later on June  1, 2020 up to $1,022.00 per month

Your landlord would need to provide you written notice at least 90 days before June  1, 2020.


The chart below illustrates yearly rent increases, in Ontario, from 2010 to 2020.

Year Guideline (%)
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


All information collected from and is not to be taken as an up to date version of Ontario laws. Please refer to for all updated information. is managed by Aleks Pavlicevic, an experienced Real Estate Sales Representative serving the GTA. With a passion for all facets of real estate, Aleks helps guide her clients to their next Real Estate endeavor with ease, expertise, and a personalized approach. Aleks' clients range from first time home buyers, families upgrading, retirees downsizing, to investors looking to grow their portfolio. 

Post a comment