Ontario Landlords Association

Housing Minister Wynne’s Letter to the Ontario Landlord Association

 To the Ontario Landlord Association Re. Changing the Annual Rent Increase Guideline

The Honourable Kathleen Wynne

Today the Ontario Liberal government introduced proposed legislation to amend how the annual Rent Increase Guideline is calculated under the the Residential Tenancies Act.

To learn more about the proposed legislation, go to the Ministry of Municipal Affairs and Housing website here.

Capping the annual rent increase will have a very strong impact on thousands of  small business landlords across Ontario already struggling to remain in business.  With prices rising, a meager  0.7% increase for 2010, increased costs, higher taxes…small business landlords are noticeably upset.

Minister Wynne is aware of the potential impact on small business landlords around Ontario and has graciously sent the Ontario Landlord Association a letter explaining the reasons behind the proposed legislation as well as the opportunity to make your voice heard once once the bill is referred to Committee.

To discuss the new Increase Cap, go to the forums here.

Minister Wynne’s letter to small business landlords is published in full below and can be found it its entirety here.


Ministry of Municipal Affairs and Housing

Office of the Minister

777 Bay Street, 17th Floor

Toronto ON M5G 2E5

Tel. 416 585 7000

Fax 416 585 6470



December 6, 2011

Ontario Landlord Association


Dear Colleague,

I am writing to you that today our government introduced proposed legislation to amend how the annual Rent Increase Guideline is calculated under  the Residential Tenancies Act (2006) RTA.

The annual rent increase guideline is based on an objective and transparent measure – the Consumer Price Index (CPI) for Ontario – which is compiled by Statistics Canada.  The Rent Increase Guideline is calculated by averaging the percentage change in the CPI during the previous months from June to May.

While this formula worked well in the past, recent economic conditions have caused fluctuations in the CPI.  This has produced guidelines that do not reflect the economic circumstances of those who rent.

Our government is proposing that the current formula be retained, but that the annual Rent Increase Guideline be capped at two and one-half percent.  If passed, the legislation would also ensure that the guideline would never fall below one percent.

The proposed amendments, if passed, would reduce the potential volatile effects of the CPI, while providing stability and predictability for both renters and landlords during these uncertain economic times.

The amendments, if passed, would also help ensure that rents remain affordable and stable for nearly one million tenants across Ontario, while recognizing that modest rent increases are necessary for landlords so they can properly maintain rental properties.

If passed by the legislature during the Spring 2012 legislative session, the revised formula would be used to calculate the Rent Increase Guideline beginning in 2013.

Our proposal would also require that the Ministry review the Rent Increase Guideline formula every four years to determine the effectiveness of the new changes as economic conditions evolve.

The proposed legislative amendments will be available to on the Legislative Assembly website (http://www.ontla.on.ca) in the next few days.  I encourage you to visit the website, as there may be an opportunity to provide comments on the proposed amendments if the Bill if referred to Committee.



Kathleen Wynne, Minister




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