June 21st, 2013
2014 Ontario Rent Increase Guideline Second Lowest Since 1975
Every year the government of Ontario announces what is called the “Rent Increase Guideline” for the next calendar year.
The Rent Increase Guideline means how much a landlord can increase the rent without having to go to the Landlord and Tenant Board.
(If the you want to raise the rent higher than the guideline you must get approval by the Board to do so.)
How Much Can An Ontario Landlord Raise the Rent in 2014?
Many small residential landlords are facing financial challenges and need to increase rents to cover their costs.
Today the Ministry of Municipal Affairs and Housing announced the Rent Increase Guideline for next year.
You can raise the rent 0.8% in 2014
The government says this is the second lowest rate since increases were regulated nearly forty years ago.
How Did They Come Up With This Figure?
The Ontario annual Rent Increase Guideline is based on the Ontario Consumer Price Index (CPI). This is a a measure of inflation. It’s calculated monthly by Statistics Canada.
The CPI is regarded as an objective, reliable measure of inflation. The CPI charts the change in the price of all goods and services in the provincial economy.
How Do I Raise the Rent For My Existing Tenants?
In most cases, the rent for a unit can be increased if at least 12 months have passed since the tenant first moved in, or since his or her last rent increase. The tenant must be given proper written notice of the rent increase at least 90 days before the increase takes effect.
For more information see the Landlord and Tenant Board Website
To discuss this and other issues go to the Ontario Landlord Forum