Rent increases in Ontario are among the most regulated aspects of the landlord-tenant relationship. The rules around when you can raise rent, by how much, and how to give proper notice are strict — and the consequences of getting them wrong include having to repay the increase to the tenant. Here is what you need to know.
The Annual Rent Increase Guideline
Each year, the Ontario government publishes a rent increase guideline — the maximum percentage by which most landlords can increase rent without LTB approval. The guideline applies to residential units that were first occupied for residential purposes before November 15, 2018. For units occupied after that date, there is no guideline cap.
The 90-Day Written Notice Requirement
To raise a tenant’s rent, you must provide at least 90 days’ written notice using the proper form (N1 — Notice of Rent Increase). The notice must state the new rent amount, the date the increase takes effect, and the increase must comply with the guideline if applicable. A rent increase without proper notice is void.
You Can Only Raise Rent Once Every 12 Months
Even if a rent increase is below the guideline, you can only raise rent once per 12-month period, per tenant. The 12-month clock starts from either the beginning of the tenancy or the date of the last rent increase — whichever is later. A second increase within 12 months is void regardless of the amount.
Above-Guideline Increases
If you have incurred significant capital expenditure costs or experienced extraordinary increases in operating costs, you may be eligible to apply to the LTB for an above-guideline increase. This is an application process — you cannot simply charge more than the guideline unilaterally. Approval is not guaranteed.
What Comes Next
Stonegate advises Ontario landlords on rent increases and guideline compliance. Book a free call at https://calendly.com/stonegatelegalservices/20min.
▶ Watch: Rent Increases in Ontario Explained for Landlords
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