Ontario Rent Raise 2024, Here is Maximum Allowable Rent Increment

Typically, landlords are permitted to raise the rent for residential property under two conditions: either 12 months have elapsed since the last rent increase or 12 months have passed since the commencement of the tenancy. To implement a rent increase in Ontario, landlords must provide their tenants with a written notification. This notice must be delivered at least 90 days before the proposed date when the rent increase is set to take effect.

Landlords are required to use specific forms for issuing these rent increase notices. These forms can be obtained from the Landlord and Tenant Board. When a landlord fails to provide the appropriate notice, or if a tenant suspects that the rent has been increased by an amount that is not legally permissible, the tenant has the right to challenge this increase.

Such disputes can be brought before the Landlord and Tenant Board. Tenants must know they have up to 12 months from the date the increased rent was first charged to initiate this dispute process. This time frame gives tenants a reasonable period to assess their situation and seek redress if necessary.

Ontario Rent Increase Guidelines 2024

The rent increase cap for 2024 has been set at 2.5%. This cap, known as the Ontario rent increase guideline, represents the maximum amount landlords can legally raise the rent for most tenants over a year without needing additional approval from the Landlord and Tenant Board.

This guideline is crucial to tenant protection, ensuring that rent increases remain within a reasonable limit each year. It applies primarily to a wide range of private residential rental units that fall under the jurisdiction of the Residential Tenancies Act of 2006. The types of housing to which this guideline typically applies include:

  • Houses, apartments, and condominiums available for rent, including basement apartments.
  • Residences in care homes.
  • Mobile homes and properties in land lease communities.

However, it’s important to note that this guideline has certain exceptions. The 2.5% cap does not apply to:

  • Newly constructed buildings, freshly added parts of existing buildings, and most new basement apartments used for residential purposes after November 15, 2018. This exception encourages the development of new housing.
  • Rental units when there is a turnover in tenancy. In such cases, the landlord and the new tenant can agree on the rent amount without being constrained by the guidelines.
  • Units in community housing and long-term care homes, recognizing the different funding and regulatory frameworks for these housing types.
  • Commercial property rentals, as different rules and regulations govern them.

Tenants and landlords should be aware of these guidelines and exceptions to ensure compliance with the law and to maintain fair and equitable housing practices. Understanding these regulations helps tenants to be informed about their rights and limitations regarding rent increases.

Exceptions to the Rent Increase Guideline

In particular situations, landlords might seek permission from the Landlord and Tenant Board to implement a rent increase that exceeds the standard rent increase guideline. This would involve a formal application process.

For residents in care homes, like retirement homes, the rent increase guideline applies only to the rental component of the overall bill. This guideline excludes other service charges, such as nursing, meals, or housekeeping services.

Moreover, certain types of housing are not subject to rent control. This exemption includes new building constructions, expansions of existing buildings, and most newly created basement apartments that were first used for residential purposes after November 15, 2018. These exceptions are designed to encourage the development of new housing options.

A sample calculation of an Ontario rent increase

Assume your monthly rent is $1,200 when your lease begins on January 1, 2025. If the guideline for 2026 is 2.5%, the calculation will look like this:

An increase of 2.5% on $1,200 = $30

$1,200 + $30.00 = $1,230

Therefore, your landlord can raise your rent to $1,230.00 per month starting January 1, 2026. Remember, your landlord must provide you with a written notice of this rent increase at least 90 days before it takes effect.

Previous Years Ontario Rent Increase Guidelines

Year Guideline (%)
2024 2.5
2023 2.5
2022 1.2
2021 0 (Due to Covid-19)
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

ontario rent increment 2024

About David Wilson 246 Articles
David Wilson is a seasoned journalist with a passion for uncovering stories that resonate with readers. With over a decade of experience in the field, David has honed his skills in writing, editing, and managing news content for various platforms.

Be the first to comment

Leave a Reply

Your email address will not be published.