The rent increase guideline applies to most private residential rental accommodation covered by the Residential Tenancies Act.
The guideline does not apply to:
- Vacant residential units
- Residential units first occupied on or after November 1, 1991
- Social housing units
- Nursing homes
- Commercial property
TIMING OF RENT INCREASES
In most cases, the rent for a unit can be increased if at least 12 months have passed since a tenant first moved in, or if at least 12 months have passed since the last rent increase.
A tenant must be given proper written notice of a rent increase at least 90 days before the rent increase takes effect.
A landlord who wishes to increase the rent by an amount higher than the guideline must apply to the Landlord and Tenant Board.
CALCULATION OF THE GUIDELINE
The rent increase guideline is calculated under the Residential Tenancies Act, and is based on the Ontario Consumer Price Index.
The Ontario Consumer Price Index is calculated monthly by Statistics Canada, and is regarded as a reliable and objective measure of inflation, charting the change in the price of all goods and services in the provincial economy.
The 2011 rent increase guideline was calculated by averaging the percentage increase in the Ontario Consumer Price Index during the previous 12 months from June 2009 to May 2010.
SAMPLE RENT INCREASE CALCULATION
The monthly rent of an apartment is $800 beginning August 1, 2010.
With proper written 90 days notice to the tenant, the landlord could lawfully increase the rent 12 months later on August 1, 2011.
The guideline for 2011 is 0.7 per cent.
The rent increase is 0.7 per cent of $800 = $5.60.
Therefore, the new rent on August 1, 2011 could be up to $805.60 ($800 + $5.60).
PREVIOUS RENT INCREASE GUIDELINES
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