Ontario Landlords Association

Ontario Landlord Question – How Much Can I Raise the Rent in 2013?

January 1st, 2013

Ontario Landlords How Much Can I Raise the Rent in 2013


Ontario Landlords Can Raise the Rent 2.5% in 2013

It’s a question landlords all over Ontario are asking.

In Ontario, landlords can raise rent every year by a certain percentage that the provincial government allows.

In past years, this percentage was based on the Computer Price Index (CPI) which is a measure of inflation.For example in 2012 the allowable increase was 3.1%

According to the Rent Increase Guideline published on the Landlord and Tenant Board Website, the CPI is a reliable and objective way to measure inflation, see a broad picture of changes in the price of goods and services in Ontario, and a sound way to set the annual rent increase.

Except for 2013, the Ontario Liberal Government threw out everything they’ve been saying about rent increases for the past nine years.

In June 2012, the government decide to put forward the Resident Tenancies Amendment Act to cap the maximum amount Ontario landlords can increase the rent for tenants occupying our rental properties.

The Liberal government stated this will create stable rents for tenants while landlords will still get a “fair return” to maintain high quality rentals. Therefore it looks like they are admitting setting the rental increase guideline based on the CPI was bad policy on their part…or political catering to tenant voters during an election year is how rental policy is truly handled in Ontario.

This means that despite inflation, higher taxes, higher costs and higher bills landlords can only raise the rent by 2.5% in 2013.

You cannot simply tell your tenants you are going to raise the rent. There are rules and procedures you must follow.

Rules For Raising the Rent

1. The 12 Month Rule

Landlords must wait at least 12 months after tenants move in before increasing the rent.

2. The 12 Month Rule Part II

All future increases must be 12 months apart from the last increase.

3. Proper Notice

Landlords must also provide tenants with written notice 90 days before the rent goes up.

4. Use the Notice of Rent Increase Form

The Landlord and Tenant Board website has a form N1 you can use to give notice about a rent increase.


Despite replying on the CPI Index to set the annual rent guideline in the past, and landlords facing higher costs in 2013 rents are capped at only 2.5%. Another reason to make sure you raise the rent in 2013 and make sure you find great tenants


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