Ontario Rent Increase Guidelines - 2018

Ontario’s annual Rent Increase Guideline is based on the Ontario Consumer Price Index (CPI), which is measured by inflation calculated by Statistics Canada.

Document Last Modified: 10/5/2018

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The Ontario Rent Increase Guidelines

The Ontario government annually sets the rent increase guidelines. These guidelines are the government announcing the rent increase rate for the year. This guides landlords with the maximum amount they are allowed to increase their rent rates for their tenants during the year without applying to the Landlord and Tenant Board.

If a landlord is interested in increasing rent by a higher rate then they must apply to the Board and wait for a decision to be made on whether or not this rate is acceptable for the tenants, the value of the property, the area, etc.

Landlords and tenants should remember that these rent increase guidelines are released annually.

What Is Included In The Guidelines?

The rent increase guidelines are based on the Ontario Consumer Price Index (CPI). This is a measure of inflation that is calculated monthly. In the guidelines, it is clearly explained to landlords and tenants how this increase rate is found and also how to apply this increase to current rent rates.

Landlords and tenants need to remember that this increase applies from January 1st to December 31st of the year that it has been set. This does not mean, however, that rent can be raised at anytime. Landlords still need to follow their lease agreements, many of which only allow for an increase upon resigning.

This could mean that an agreement that was signed in August 2014 can only be increased when the lease is resigned or taken up by a different tenant in August of 2015.

Note: It has been set that the rent increase rate cannot exceed 2.5 percent even when it has been calculated to be higher.

More Information is Available

Having the most fruitful and effective relationship between a landlord and tenant starts with having as much information about the laws and everyone’s rights as possible. Both parties involved can always find tips, advice and concrete information from the expert team at EZ Landlord Forms by reading some of their articles at: https://www.ezlandlordforms.com/articles/news/

For more specific details and laws put out by the government of Ontario, landlords can visit: https://www.ontario.ca/laws/statute/06r17

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