As of January 1, Ontario landlords once again have the option of raising rents.
For 2022, the maximum allowable Ontario rent increase is set at 1.2%.
The change comes after the province froze rent increases in 2020 to help Ontarians meet the challenges of the COVID-19 pandemic. This freeze ended on December 21, 2021 and has not been renewed.
With the potential rent increases to come, here are some of the most frequently asked questions by Ontarians about the maximum rent increases allowed.
Will my rent go up automatically?
No, rent increases are not automatic. A landlord must give tenants written notice using an N1 form in order to legally increase a tenant’s rent.
How much notice does my landlord have to give me?
The N1 form must be served on the tenant with 90 days notice before the increase takes effect.
How much can my landlord increase my rent by?
Without asking for a rent increase above the guideline, a landlord can increase a renter’s rent by up to 1.2% of the current price.
How long after I move in can my landlord increase my rent?
In most cases, a landlord must wait 12 months after a tenant moves in or since the last rent increase to increase the rent.
Are there any exceptions to the maximum rent increases allowed?
A landlord can apply to the Landlord Rental Board (CLB) to increase the rent by more than 1.2%. This must be approved by the CLI before a notice is given to the tenant.
Additionally, the 1.2% guideline does not apply to buildings first occupied after November 15, 2018, social housing, long-term care homes, or commercial buildings.
Can my landlord request a rent increase above the guideline?
According to the Ministry of Municipal Affairs and Housing, in most cases the rent increase cannot be greater than the rent increase guideline.
However, a landlord can request a rent increase above the guideline in certain circumstances to recover expenses that are not factored into the guideline calculation, for example if there has been a large increase. municipal taxes, the landlord has incurred significant capital expenditures (eg renovations, repairs, unit replacements) or the landlord has incurred operating costs related to security services.
For a full list of reasons a landlord may request a rent increase above the guideline, click here.
Do I have to accept a rent increase?
If the landlord has provided 90 days written notice and the rent increase is 1.2% or less, the tenant is not required to accept the increase.
However, if a landlord tries to increase the rent by more than 1.2% and has not requested a rent increase above the guideline, has not provided the correct rent increase form, or if the tenant believes their rent has been inappropriately increased, the tenant can file a complaint with the CLI within 12 months.
How are the maximum authorized annual rent increases calculated?
The Ontario government calculates maximum recommended rent increases using the Ontario Consumer Price Index, a tool that measures inflation and economic conditions over a year.
According to the ministry, data from June to May is used to determine the guideline for the following year.