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 ontario.ca
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.
All information collected from ontario.ca and is not to be taken as an up to date version of Ontario laws. Please refer to ontario.ca for all updated information.
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