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Rent increase guidelines for Ontario 2019

Can my landlord increase my rent?.. Find out your tenant rights in Ontario.


Can my landlord increase my rent?

How often and how much can your landlord legally increase your rent by? Landlords are required to follow the rules and guidelines of the Landlord and Tenant Board when changing your monthly rental price. The rental guidelines below apply to most residential accommodations covered by the Residential Tenancies Act.


This does not apply to

  • Vacant residential units

  • Social housing units

  • Nursing homes

  • Commercial properties

These guidelines also do 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.


How often landlords can raise your rent

In most cases Landlords in Ontario can legally increase the rental 12 months after:

  • The last rent increase

  • A tenant first moves in


What landlords are able to increase rent by

Every year the amount that landlords can increase rent will fluctuate based on a Statistics Canada tool called Ontario Consumer Price Index (CPI). In 2019, landlords are able to increase your monthly rent by 1.8%. This is no different from last year, but increased from 1.5% in 2017. This is the maximum landlords can raise a tenant's rent during the year without the approval of the Landlord and Tenant Board.



Sample increase calculation

If the monthly rent of an apartment is $1000.00 beginning January 1, 2018, with proper written 90 days notice to the tenant can a landlord increase the rent 12 months later on January 1, 2019.


Calculation

  • The 2019 guideline is 1.8%

  • A rent increase of 1.8% on $1000.00 = $18.00

  • Therefore the new rental price on January 1, 2019 could be as much as $1018.00


Things to keep in mind

By law, the rent increase guideline cannot exceed 2.5% from the year before, even if the CPI increase is higher.


Landlords can apply to the Landlord and Tenant Board (LTB) for an increase above the guideline for the following reasons:

  • Their municipal taxes have increase by more than the guideline plus 50%

  • They incurred operating costs related to security services

  • They incurred eligible capital expenditures

Landlords may also increase the monthly rent at any time if both the landlord and tenant agree that the landlord will add a new service or facility such as parking space, storage lockers or air conditioning.


When it comes to the guideline and rent deposits:

Annually, the landlord must pay the tenant interest on the rent deposit. The interest rate is the same as the rent increase guideline.


Florence legal services assists landlords and tenants in legal matters regarding the Landlord and Tenant Act. For additional information about the Landlord and Tenant Board and legal advice in Guelph Ontario, visit our website for a free legal consultation www.florencelegalservices.com or give us a call at

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