Ontario Landlords Association

The 2013 Ontario Rent Increase Guideline is 2.5%

June 23nd, 2012

How Much Will I be Able to Raise the Rent in 2013?

The guideline for 2013 is 2.5 per cent.  For example, if the rent is $1,000 the amount you can increase the rent is $25.

How Was this Increase Calculated?

In Ontario the yearly Rent Increase Guideline is a calculation based on the Ontario Consumer Price Index.  This Index is managed the federal government’s Statistics Canada.

With All the Increases in My Costs, It Feels Too Low

The amount should have been 2.6% except there is a recent new law capping annual increases in Ontario to a maxium of 2.5%

Even 2.6% Is Too Low for Me to Recover My Costs

Agreed.  There is a lot of debate going on amongst landlords regarding changing the rent increase formula to add more weight to costs landlords’ face.  This issue has already been brought up by the OLA to MPPs and candidates in ridings across Ontario.

What Types of Property Does the Guideline Cover?

The Ontario Rent Increase Guideline applies to most of the  private residential rental accommodation covered by the Residential Tenancies Act, 2006 (RTA).

It’s important to note this guideline does not apply to

  • Residential units which are vacant
  • Residential rental units first occupied on or after November 1st, 1991
  • Units which are Social housing units
  • Units which are used as Nursing homes
  • Commercial properties

How Do I Give My Tenants a Rent Increase?

Usually the rent for a unit can be increased if the following situation exists.  At least 12 months must have passed since a tenant first moved in, or, if at least one year has passed since the last rent increase.

Please note, your tenants must be given proper written notice of a rent increase.  Proper notice means at least 90 days before the rent increase takes effect.

Can You Provide Me With a Clear Example?

Let’s say the monthly rent for your house is $1,000 beginning August 1, 2012.

With proper notice (written 90 days notice to the tenant), you could lawfully increase the rent 12 months later on August 1, 2013.

Let’s put that another way:

  • The Ontario guideline for 2013 is 2.5%.
  • The rent increase is 2.5% of $1,000 = $25.
  • This means the new rent on August 1, 2013 could be up to $1025 ($1000 + $25).

You find out more and add your opinions in the Ontario Landlords Advice Forum.


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