Rent can now be raised again in Ontario. Here's everything you need to know

The Selby in Toronto. (Tricon Residential)

As of Jan. 1, landlords in Ontario once again have the ability to raise rents.

For 2022, Ontario's maximum allowable rent increase is set at 1.2 per cent.

This change comes after the province froze rental increases in 2020 to help Ontarians with the challenges of the COVID-19 pandemic. That freeze ended on Dec. 21, 2021 and was not renewed.

With potential rental increases coming down the line, here are some of the most frequently asked questions Ontarians have on maximum allowable rent increases.

Will my rent automatically increase?

No, rent increases are not automatic. A landlord must give tenants written notice using an N1 form in order to legally raise a tenant’s rent.

How much notice does my landlord have to give me?

The N1 form must be served to a tenant with 90 days notice before the increase takes effect.

How much can my landlord raise my rent?

Without filing for an above-guideline rental increase, a landlord can raise a tenant’s rent by 1.2 per cent of the current price at the most.

How soon after I move in can my landlord raise my rent?

In most cases, a landlord must wait 12 months after either a tenant has moved in or since the last rental increase to raise rent.

Are there any exceptions to maximum allowable rent increases?

Yes.

A landlord may make an application to the Landlord-Tenant Board (LTB) in order to increase rent by more than 1.2 per cent. This must be approved by the LTB before notice is given to the tenant.

Additionally, the 1.2 per cent guideline does not apply to buildings occupied for the first time after Nov. 15, 2018, social housing units, long-term care homes or commercial property.

Can my landlord apply for an above-guideline rental increase?

According to the Ministry of Municipal Affairs and Housing, in most cases, the rent increase cannot be more than the rent increase guideline.

However, a landlord can apply for an increase in rent above the guideline in certain circumstances to recover expenses that are not taken into account in calculating the guideline, such as if there has been a significant increase in municipal taxes, the landlord has undergone significant capital expenses (e.g. renovations, repairs, replacements to the unit) or the landlord has experienced operating costs related to security services.

For a full rundown of reasons a landlord may apply for an above-guideline rental increase, click here.

Do I have to agree to a rental increase?

If the landlord has provided 90 days written notice and the rental increase is equal to or less than 1.2 per cent, a tenant is not required to agree to the increase.

However, if a landlord tries to raise rent more than 1.2 per cent and has not applied for an above-guideline rental increase, did not provide the correct rental increase form or if the tenant otherwise feels their rent has been improperly raised, the tenant may file a complaint with the LTB within 12 months.

How are yearly maximum allowable rent increases calculated?

The Ontario government calculates maximum rental guideline 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.