The Government of Ontario has set the 2017 guideline for rent increases to 1.5 per cent.
The guideline, which is set by the Province of Ontario, outlines the maximum percentage by which landlords can increase a tenant’s rent based on the Ontario Consumer Price Index. The guideline is the maximum a landlord can increase most tenants’ rent during a year without the approval of the Landlord and Tenant Board.
The 1.5 per cent rent increase was down 0.5 per cent from 2016 – which had been set at 2.0%.
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
- residential units first occupied on or after November 1, 1991
- social housing units
- nursing homes
- commercial properties
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 2015 to May 2016 was used to determine the 2017 guideline.
A Sample Calculation:
Your monthly rent is $1,000 on August 1, 2016. The guideline for 2017 is 1.5%. Therefore:
- an increase of 1.5% on $1,000 = $15.00
- $1,000 + $15.00 = $1,015.00
Your landlord could lawfully increase your rent payment 12 months later on August 1, 2017 up to $1,015.00 per month.
Your landlord would need to provide you written notice at least 90 days before August 1, 2017.
In March 2016, Canada’s leading online Real Estate Finder, RentSeeker.ca published it’s bi-annual report showing average rents across Ontario.
Previous Rent Increase Amounts from 2000 to 2016:
The chart below illustrates yearly rent increases, in Ontario, from 2000 to 2016.
