Ontario Landlords Can Raise the Rent 2.5% in 2023
It’s a question small mom and pop landlords all over Ontario are asking.
In Ontario, landlords (in most cases) can only raise rent every year by a certain percentage that the provincial government allows.
In past years, this percentage was purely 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 explanation 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.
In June 2012, the Wynne Liberal government put forward the Resident Tenancies Amendment Act to cap the maximum amount Ontario landlords can increase the rent for tenants occupying our rental properties.
Our members were in contact with their MPPs and then Housing Minister Kathleen Wynne about this. Wynne wrote to the Ontario Landlords Association stating this would create stable rents for tenants while landlords will still get a “fair return” to maintain high quality rentals.
This means that despite inflation, higher taxes, higher costs and higher bills landlords can only raise the rent by 2.5% in 2023.
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.
Tags: Landlord and Tenant Board, legal, rent increase guideline ontario 2023