Rent Increase Guideline Inches Up in Ontario

by | Jul 21, 2014 | Rental Property Management Tips

Ontario’s rent increase guideline for 2015 has been set at 1.6 per cent.

This figure represents the maximum a landlord can increase a tenant’s rent without first seeking approval from the Landlord and Tenant Board.

The guideline applies to rent increases throughout the calendar year 2015.

tenant screeningThe figure is based on the Ontario Consumer Price Index, a measure of inflation. However, due to recent legislation, the annual guideline can no longer exceed 2.5 per cent.

The rent increase guideline covers about 85 per cent of private residential units in Ontario.

Generally, the rent for a unit can be increased by the guideline amount 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.

Landlords opting to increase rent first must provide tenants with an approved notice form at least 90 days prior.

The 2015 figure is double the 2014 guideline of 0.8 per cent, which was the second-lowest figure since the regulations came into effect. The 2011 increase of 0.7 per cent was the lowest. The guideline is 2013 was 2.5 per cent, following the 2012 increase of 3.1 per cent. The highest allowed increase was 6 per cent in 1992. The average yearly increase from 1993-2003 was 3.1 per cent, and from 2004-2012 the average increase was 2 per cent.

The guideline does not apply to:

Vacant residential units
Residential units first occupied on or after Nov. 1, 1991
Social housing units
Nursing homes

For more information about rent increases in Ontario, including approved forms, visit a local Landlord and Tenant Branch or

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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