Ontario Announces 2020 Rent Increase Guideline

by | Jul 22, 2019 | Rental Property Management Tips

Ontario landlords are allowed to increase rent by 2.2% in 2020.

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

Due to a recent change in the residential tenancy laws, the guideline now applies to most private rentals.

However, it does not apply to rental units first occupied for residential purposes after November 15, 2018, and vacant units. According to the Landlord and Tenant Board, there is no limit to how much a landlord can increase the rent each year for these units.

Generally, rent can be increased once every 12 months. Landlords must provide 90 days’ notice of a rent increase. The notice of increase form is available from the Landlord and Tenant Board.

Landlords are warned to be precise with calculations and to not “round up” to a figure that is beyond the 2.2%.

Requests can be made for higher rent increases. Generally, the grounds for an above-guideline increase include:

Municipal taxes have increased by more than the guideline plus 50 per cent. (For example, if the guideline is 2.2%, the taxes must have increased by more than 3.3%);
The landlord incurred operating costs related to security services;
The landlord incurred eligible capital expenditures; or
The landlord and the tenant agree that the landlord will add a new service or facility such as a parking space, air conditioner or storage locker.

If the tenant paid a rent deposit, the landlord is required to pay interest on that amount. The interest rate and the rent increase guideline are the same figure.

For more information or to obtain forms, contact the Landlord and Tenant Board.

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.

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