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Ontario Rent Increase Guideline 2015

Friday, June 20th, 2014

 Rent Increase Guideline 2015 Ontario

Ontario Landlords Can Raise the Rent 1.6% in 2015

With the cost of running a rental property rising Ontario landlords know raising rents to keep up with increasing expenses is important.

Each year the Ministry of Municipal Affairs and Housing announces what is called the ‘Rent Increase Guideline.’

What Is the Rent Increase Guideline?

This informs residential landlords how much they can raise the rent on tenants.

How Does It Inform Landlords on Raising the Rent?

It’s tells you what the cap is for any increases of rent on your tenants. You can’t raise the rent more than the cap unless you apply and get it approved at the Landlord and Tenant Board.

When Does The 1.6% Rent Increase Cap Start?

This will starting on January 1st, 2015 and end on December 31st, 2015.

How Was The Ontario Rent Increase Guideline for 2015 Calculated?

It’s calculated by measuring inflation.

This measurement comes from data provided by Statistics Canada which creates the Ontario Consumer Price Index.

An Increase of Only 1.6% Is Too Low! My Costs are Much Higher!

Many small residential landlords in Ontario agree with you.

The Ontario Consumer Price Index (CPI) upon which the Guideline is based does not include many inflation factors that small landlords face. The formula needs to change.

For example, BC landlords also have an annual rent increase guideline.

However, the government there understands the financial pressures landlords face and the limits of the basing the rent increase on CIP. This means they will take the CPI and also add another 2% to come up with British Columbia Rent Increase Guideline.

Some provinces encourage investment in residential rental properties by not even having this type of rent control.

Alberta landlords can raise the rent according to the market as long as they provide their tenants with proper notice.

Are All Ontario Residential Rental Properties Covered by Rent Control?

No. Some Ontario properties are exempt and don’t have to follow the cap. These are rental buildings built before November 1991.

But around 85% of rentals in Ontario are covered.

Rent Increase Guideline 2015 – With another low cap for rent increases it’s important Ontario Landlords choose good tenants for your rental properties.

Make sure you screen your tenants carefully and always run a tenant credit check to make sure you know who you are renting to.

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Ontario Housing Ministry on the Rent Increase Guideline for Ontario Landlords

Sunday, July 15th, 2012

 

Answers to Questions about Rent from Ontario Landlords Association Members

Ontario’s annual Rent Increase Guideline is released pursuant to the Residential Tenancies Act, 2006 (RTA) – the legislation that governs rental housing in Ontario.  We believe this legislation balances the rights and responsibilities of both landlords and tenants.

Ontario’s annual Rent Increase Guideline is based on the Consumer Price Index (CPI) for Ontario – an objective and transparent measure that is calculated by Statistics Canada.

The 2012 Rent Increase Guideline is 3.1%.  This guideline applies to a rent increase that begins any time between January 1, 2012 and December 31, 2012 and applies to most residential units in Ontario.  However, other provisions of the RTA allow only one rent increase every 12 months, and require at least 90 days advance notice to tenants of a rent increase. (more…)

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The 2013 Ontario Rent Increase Guideline is 2.5%

Saturday, June 23rd, 2012

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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