Residential Rent Increases
Rules for rent increase
In most cases, the rent for a residential unit can be increased 12 months after either:
the last rent increase
the date the tenancy begins
The landlord must give a tenant written notice of a rent increase at least 90 days before it takes effect.
The proper forms for this notice are available from the Landlord and Tenant Board. If your landlord has not provided the proper notice, or you believe that your rent has been raised by an improper amount, you can dispute it at the Landlord and Tenant Board within 12 months after the amount was first charged.
Rent increase guideline
The rent increase guideline for 2023 is 2.5%.
The guideline is the maximum a landlord can increase most tenants’ rent during a year without the approval of the Landlord and Tenant Board.
For most tenants, your rent can’t go up by more than the rent increase guideline for every year.
The guideline applies to most private residential rental units covered by the Residential Tenancies Act, 2006. This applies to most tenants, such as those living in:
rented houses, apartments, basement apartments and condos (see exceptions for newly occupied units)
care homes
mobile homes
land lease communities
The guideline does not apply to certain types of units including:
vacant residential units
community housing units
long-term care homes
commercial properties
Social housing is covered by the Residential Tenancies Act, but has different rules regarding rent control and rent increase notices.
Exceptions
In some cases, landlords can apply to the Landlord and Tenant Board for approval to raise your rent(PDF) by more than the rent increase guideline.
In care homes (such as a retirement home), the rent increase guideline only applies to the rent portion of your bill but does not apply to the cost of services like nursing, food or cleaning.
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 are exempt from rent control.
How we calculate the guideline
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.
The rent increase guideline is capped at 2.5% to prevent significant rent increases.
A sample calculation of a rent increase
Your monthly rent is $1,000 when you sign a lease on June 1, 2022. The guideline for 2023 is 2.5%. Therefore:
an increase of 2.5% on $1,000 = $25.00
$1,000 + $25.00 = $1,025.00
Your landlord could lawfully increase your rent payment 12 months later, on June 1, 2023 up to $1,025.00 per month.
Your landlord would need to provide you written notice at least 90 days before June 1, 2023.
Previous rent increase guidelines
The chart below illustrates yearly rent increases, in Ontario, from 2017 to 2023.
Year Guideline (%)
2023 2.5
2022 1.2
2021 0
2020 2.2
2019 1.8
2018 1.8
2017 1.5
Rent freeze during 2021
The Government of Ontario passed legislation to freeze rent at 2020 levels for 2021. This meant that rents did not increase in 2021 for most rented units covered under the Residential Tenancies Act, 2006.
The rent freeze applied to most tenants living in:
rented houses, apartments and condos (including units occupied for the first time for residential purposes after November 15, 2018)
basement apartments
care homes (including retirement homes)
mobile home parks
land lease communities
rent-geared-to-income units and market rent units in community housing
affordable housing units created through various federally and/or provincially funded programs
While the rent freeze ended on December 31, 2021, landlords could give proper 90 days’ notice beforehand for a rent increase that takes effect in 2022.
Exceptions
Above guideline increases approved by the Landlord and Tenant Board prior to October 1, 2020 could be applied to 2021 rents. New above guideline increases could still be approved by the Landlord and Tenant Board and could still be applied to 2021 rents if they were for costs related to eligible capital repairs and security services, but not if they were for extraordinary increases in municipal taxes and charges.
Tenants and landlords could still agree on rent increases in exchange for an extra service or facility (for example, air conditioning or parking).
Additional information
For more information on the rent increase guideline, contact the Landlord and Tenant Board:
Toll-free: 1-888-332-3234
Resolving issues about rent control
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.
To show that a unit is exempt from rent control, landlords can:
include an additional term under section 15 of the lease stating that the unit is exempt from the rent increase guideline
keep records that prove the exemption – in case the tenant asks, or there is a dispute
New buildings and additions
If there is a dispute about new buildings and additions, the landlord must prove that the building or addition was first occupied for residential purposes after November 15, 2018.
Landlords might want to keep records, such as:
building permits, permit applications and plans
occupancy permits
new home warranty documents
documents from the builder
New units in existing houses
If there is a dispute about new units in existing houses, the landlord must prove that the new unit was completed after November 15, 2018.
The landlord must also prove either:
the unit was built in a previously unfinished space like a basement or attic
the owner lived in another part of the house when the new unit was first occupied
Landlords might want to keep records, such as:
documents from the builder or invoices from the contractor
“before and after” photographs
building permits, permit applications and plans
Information retrieved from:
https://www.ontario.ca/page/residential-rent-increases
