2024- 1997 Rent Increase Guideline
The annual Rent Increase Guideline is a calculation based on the Ontario Consumer Price Index by Statistics Canada and applies to most private residential rental accommodations covered by the Residential Tenancy Act 2006.
https://www.ontario.ca/laws/statute/06r17/v8
Ontario Capping Rent Increases Below the Rate of Inflation
The guideline does not apply to:
· Vacant residential units
· Residential units first occupied on or after Nov. 1, 1991
· Social housing units
· Nursing homes
· Commercial property
Timing of Rent Increases – In most cases, the rent for a unit can be increased if at least 12 months have passed since a tenant first moved in, or if at least 12 months have passed since the last rent increase. A tenant must be given proper written notice of a rent increase at least 90 days before the rent increase takes effect.
Calculation of the Guideline – The Rent Increase Guideline is calculated under the Residential Tenancies Act, 2006, and is based only on the Ontario Consumer Price Index which is calculated monthly by Statistics Canada. The 2022 Rent Increase Guideline is calculated by averaging the percentage increase in the Ontario Consumer Price Index during the previous 12 months from June 2020 to May 2021.
Sample Rent Increase Calculation – The monthly rent of an apartment is $1,000 beginning August 1, 2021. With proper written 90-day notice to the tenant, the landlord could lawfully increase the rent 12 months later in August. 1, 2022.
Example:
· The guideline for 2014 is 0.8 percent
· The rent increase is 0.8 percent of $1,000 = $8.00
· Therefore, the new rent on Aug.1, 2014, could be up to $1,008.00 ($1,000 + $8.00)
When you are buying a building the agreement of purchase & sale should address the Last Month Interest (LMI). If it is not addressed in the agreement, then you should know what you’re responsible and liable for. When purchasing a small plexus, it isn’t or shouldn’t break a deal. Neither should it break a deal on large transactions; however, it can add up to thousands of dollars.
You want to make sure the interest has been paid on the LMR or have it included in disbursements on the closing of your transaction. If the interest charges on LMR have not been kept up to date when you take over a building you as the new owner become liable for them.
Rent Increase Guideline 1997 – 2022
- 2024…………..2.5%
- 2023…………..2.5%
- 2022…………1.2%
- 2021…………0.0%
- 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%
- 2009…………1.8%
- 2008…………1.4%
- 2007…………2.6%
- 2006…………2.1%
- 2005…………1.5%
- 2004…………2.9%
- 2003…………2.9%
- 2002…………3.9%
- 2001…………2.9%
- 2000…………2.6%
- 1999…………3.0%
- 1998…………3.0%
- 1997…………2.8%
A landlord may increase a current tenant’s rent once per year by an amount not to exceed the guideline. The guideline applies to most private residential rental units covered by the Residential Tenancies Act.
CMHC Residential Rent Increases
https://www.ontario.ca/page/residential-rent-increases
For more information on rent increase, please contact the Landlord and Tenant Board at 416-645-8080 or 1-888-332-3234