Ontario Announces 2019 Rent Increase Guideline

by Chris on July 16, 2018

The Ontario rent increase guideline for 2019 is 1.8%.

The figure represents the maximum a landlord can increase rent throughout 2019 without applying to the Landlord and Tenant Board for an above-guideline increase.

The 1.8% figure is the same as the 2018 guideline, with one important distinction: this year’s guideline applies to virtually all private rental properties. The previous exemption for properties built after 1991 has been eliminated.

Generally, rent can be increased 12 months after a tenant moves in, or 12 months after the last rent increase.

Tenants must be provided written notice at least 90 days before the rent increase can take effect. The notice must comply with the rules of the Landlord and Tenant Board.

When calculating rent, it is important not to round up if that amount would bring the rent increase over the guideline figure.

Ontario landlords have the right to apply for an above-guideline increase for the following situations:

Municipal taxes have increased by more than the guideline plus 50% — 2.7% or more under the current guideline;
The landlord incurred operating costs related to security services; or,
The landlord incurred eligible capital expenditures.

For more information including forms, visit Landlord and Tenant Board.

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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.

{ 5 comments… read them below or add one }

Andrew July 18, 2018 at 6:09 am

In THEORY Ontario landlords can (pay to) apply for an above the guideline increase for certain limited catogories of expense increases….However….. recently landlords who have do this have been punished with “rent strikes”.

I thought it was a violation of the residential tenancies act for a tenant to not pay rent and continue living in the rental property. But it appears the landlord tenant board is not upholding the landlords’ rights.

Instead, organized groups of tenants withold rent payments in response the legal above the guideline increases, until the landlord, facing financial duress, agrees to cancel the allowed above the guideline increase. This is regarded as a “victory”.

These increases have been as little as 1.6%. Yet the landlord will be punished and fined if the rental property is not keep to standards (when there isnt enough rental income to pay for repairs.)

Yet some people cant grasp why no real affordable housing is being built in Toronto.

Shawn Paltooram December 3, 2018 at 10:47 pm

Its just a matter of time before all Landlords will be out of business and the more people will end up homeless. The Ontario government is forcing Landlord to become slumlords. Can the Ontario government cap all operating expenses for the year at 1.8% in there operating budget? if they cannot do it, they should not be expecting Landlords to comply with a 1.8% rent increase to cover expenses per year. Its just madness. The creation of rent control had basically created the crisis for affordable housing. Build a new building today and in 10 years, you will be lucky to recover your cost and the “new build exempt” clause is gone. Investor are not suckers. Can the Ontario government explain to me what is affordable housing in today’s market or define what the dollar value is for affordable housing?

Nancy January 14, 2019 at 4:12 pm

When the inflation rate is more than 5% to even 35% in areas like food and clothing and even interest rates, how a Landlord who is renting a property because of an extra income to even out would be to manage between the inflation rate forced by the government and the only 1.8% of rent increase. IT is absolutely unfair to those who own a property and even if they want to give the property to a better or tenant who pays more they will be penalized of 25000 fine. Canada is leading to a communism society to hold people by not becoming rich with renting their property. Where as the government should stop selling property to those with visitor visa like chinese people who do money laundry and instead allow the canadians to become richer not poorer.

konstantin tselios March 10, 2019 at 1:35 pm

i know may be 50 or more small land lords who where financially destroyed because of
tenants ,but i have never hear a story about a tenant who was really affected by being relocated to a new neighbourhood.Tenants of today are angels comber to tenants of the
past.I am talking 20-30-40 years ago.It is all about votes now and then.Landlords where
and probably are peoples enemies.

francis chan November 19, 2019 at 12:16 pm

What is the calculation method for Lease renew another year?
Current rent $1729 per month; the rent increase allow: are in 2019 is 1.8% & 2020 is 2.2%.
What is the official percentage and fiinal fixture.

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