Ontario Sets 2016 Rent Increase Cap

by | Jun 22, 2015 | Rental Property Management Tips

tenant screeningOntario’s rent increase guideline for 2016 has been set at 2.0 per cent.

The guideline represents the maximum amount a landlord can increase a tenant’s rent without first seeking approval from the Landlord and Tenant Board, and applies to rent increases from January 1, 2016 through December 31, 2016.

While each year’s guideline follows the Ontario Consumer Price Index, a recent amendment to the Ontario Residential Tenancies Act prevents any subsequent guidelines from exceeding 2.5 per cent.

The 2016 figure is an increase over this year’s guideline set at 1.6 per cent. The last 2.5 per cent increase was in 2013, following a 3.1 per cent increase in 2012. In contrast, the guideline for 1992 was 6.0 per cent.

The rent increase guideline applies to most private and residential rentals.

Exceptions include vacant residential units, residential units first occupied on or after November 1, 1991, social housing units, nursing homes and commercial property.

Generally, rent can be increased after 12 months have passed since a tenant either first moved in or since the last rent increase. Tenants must be given proper, written notice of a rent increase at least 90 days before the increase is to take effect.

For questions regarding rent increases in Ontario, 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 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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