Last Updated On 8 December 2023, 7:44 PM EST (Toronto Time)
Ontario Rent Increase 2024: The Ontarian government on June 30, 2023, announced the new rent guidelines, keeping the annual rent increase at 2.5% in 2024, which is much lower than the 5.9% average inflation rate.
The rent increase guideline specifies the maximum annual rent increase that a landlord may impose on the majority of tenants without seeking permission from the Landlord and Tenant Board.
In most circumstances, a residential unit’s rent can be raised if at least 12 months have passed since the last rent rise or start date of tenancy.
A tenant must be given written notice of a rent increase using the correct forms by the landlord at least 90 days before it takes effect.
Within a year of the charge, a tenant may file a complaint with the Landlord and Tenant Board if they feel that the landlord did not give them the proper notice or that the rent increase was excessive.
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Full Guidelines for Ontario Rent Increase 2024
The 2024 rent increase guideline is set at 2.5%. This guideline is the maximum amount a landlord can raise most tenants’ rents in a year without the landlord and tenant board’s consent.
Most tenants’ rents cannot go up by more than the annual rent increase guideline.
The rule applies to the vast majority of private residential rental units regulated by the Residential Tenancies Act of 2006.
This is true for the vast majority of tenants, including those who live in:
- care homes
- mobile homes
- land-lease communities
- rental houses, apartments, basement apartments, and condos
The policy does 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
- rental units upon turnover of a tenancy (the landlord and new tenant agree on the rent amount)
- community housing units
- long-term care homes
- commercial properties
The Residential Tenancies Act of 2006 applies to social housing, but there are various rules governing rent control and rent increase notices.
Exceptions
Landlords can apply to the Landlord and Tenant Board for permission to raise their rent (PDF) by more than the rent increase guideline in some instances.
The rent increase guideline only applies to the rent element of your bill in care facilities (such as a retirement home) and does not apply to the cost of services such as nursing, meals, or cleaning.
Rent control does not apply to new buildings, extensions to existing buildings, or the majority of new basement flats that are occupied for the first time for residential purposes after November 15, 2018.
How are the guidelines determined?
It is calculated using Statistics Canada’s Ontario Consumer Price Index, which tracks inflation and economic circumstances over a year.
The recommendation for the following year is based on data from June to May.
To avoid substantial rent increases, the rent increase guideline is restricted to 2.5%.
A rent increase calculation example
When you sign a lease on June 1, 2023, your monthly rent will be $1,000. The target for 2024 is 2.5%. Therefore:
a 2.5% increase on $1,000 = $25.00
$1,000 + $25.00 = $1,025.00
Your landlord might legally raise your rent payment to $1,025.00 per month 12 months later, on June 1, 2024.
Your landlord must give you written notice at least 90 days before June 1, 2024, using the Landlord and Tenant Board’s correct form.
Resolving rent issues
You can contact the Landlord and Tenant Board as a tenant or landlord to find out if a unit is exempt from the rent increase guidelines.
Landlords can demonstrate that a unit is free from rent control by doing the following:
Include a clause in Section 15 of the agreement saying that the unit is exempt from the rent increase guideline.
Keep papers that prove the exemption in case the tenant asks or a dispute arises.
New structures and additions
If a dispute arises regarding new structures and additions, the landlord must demonstrate that the building or addition was first inhabited for residential purposes after November 15, 2018.
- Landlords should retain records such as:
- Permits, applications, and plans for construction
- new home warranty documents
- documents from the builder occupancy permits
Existing houses with new units
If a dispute arises regarding new flats in existing residences, the landlord must demonstrate that the new unit was constructed after November 15, 2018.
The landlord must additionally demonstrate that when the new unit was first occupied, the owner was living in another section of the house because the unit was created in a previously unfinished space such as a basement or attic.
Landlords should retain records such as paperwork from the builder or contractor invoices, “before and after” photos of building permits, permit applications, and plans.
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