Ontario Caps Rent Increases, Announces 2013 Guideline

by | Jul 2, 2012 | Rental Property Management Tips

Ontario’s Rent Increase Guideline for 2013 is set at 2.5 per cent.

While the annual Rent Increase Guideline continues to be based on Ontario’s Consumer Price Index (CPI), which is a measure of inflation calculated monthly by Statistics Canada, due to recently passed legislation, the Rent Increase Guideline is now capped at 2.5 per cent. Without the cap, the guideline would have been 2.6 per cent in 2013.

The guideline represents  the maximum percentage by which a landlord can increase the rent for most sitting residential tenants without approval from the Landlord and Tenant Board.

Last year’s increase was 3.1 per cent. The average yearly increase from 2004-2012 was two per cent. The average yearly increase from 1993-2003 was 3.1 per cent.

The 2013 guideline applies to rent increases between January 1 and December 31, 2013.

An estimated one million tenant households in Ontario are covered by the annual Rent Increase Guideline. The Rent Increase Guideline applies to most private residential rental accommodation covered by the Residential Tenancies Act, 2006 (RTA).

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

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.

According to Housing Minister Kathleen Wynne, tenants will benefit from more predictable and stable rents so they have safe and affordable housing, and for landlords, the cap will ensure a fair return so they can properly maintain and repair rental properties. 

“This amendment will help keep rental housing costs affordable and stable for over one million tenants in Ontario. This will allow people to focus on their personal well-being and health and will contribute to growing our economy,” says Minister Wynne.

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 in 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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