Ontario Expands Rent Control, Sets 2018 Rent Increase Guideline

by Chris on July 17, 2017

Ontario’s annual rent increase guideline for 2018 is set at 1.8 per cent.

That figure represents the maximum a landlord can raise a tenant’s rent without first seeking approval from the Landlord and Tenant Board. It applies to rent increases for the calendar year 2018.

Ontario recently passed the Rental Fairness Act, 2017, which expanded the number of properties impacted by the rent increase guideline. Previously, rentals occupied on or after November 1, 1991 were exempt. However, the new legislation expands rent control to all private rental units, including those occupied on or after November 1, 1991. Rent increase notices provided on or after April 20, 2017 must comply with the rent increase guideline rules.

The new legislation is expected to cover about 250,000 tenants. The rent increase guideline is not applicable to vacant residential units, social housing, nursing homes, or commercial property. Ontario’s annual rent increase guideline is capped at a maximum of 2.5 per cent.

According to Chris Ballard, Minister of Housing and Minister Responsible for the Poverty Reduction Strategy, the expansion of rent control means that more people are protected from “unfair and unpredictable rent increases.”

Under the new legislation, landlords no longer will be able to apply for above-guideline increases due to increased utility costs.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

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Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

{ 1 comment… read it below or add one }

Andrew July 18, 2017 at 9:16 am

According to a recent media article, over 500 purpose built rental projects have just been cancelled in Ontario. Likely in response to the provincial liberal govts sweeping rent control measures.

Investors wont invest in rental housing if rents cant cover ever increasing annual operating expenses.

Experts say landlords who own condos will likely begin to sell, further reducing toronto’s rental stock, as landlords will not be allowed to apply for above the guideline rental increases due to skyrocketing utility costs and maintenance fees.
It is estimated that as much as one third of torontos rental housing is presently comprised of condos.

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