Rent Increase in Ontario
The Residential Tenancies Act provides that no charge of rent or increase of rent is
allowed greater than the lawful rent permitted. Lawful rent for a new tenant is the first
rent charged to that new tenant, subject to certain qualifications outlined in the Act; e.g.,
selected provisions relating to rent premiums and discounts.
The topic of lawful rents has understandable complexities. As a general statement, the
landlord can only increase rent in accordance with the Act if 12 months have elapsed
since: (1) the last rent increase; or (2) since the day the rental unit was first rented by the
tenant. Special provisions apply to existing tenants previously falling under the Rent
Control Act, 1992.
Following are selected points regarding rent increases:
- The landlord must give at least 90 days notice on an approved form for any rent increase.
This includes an increase involving higher operating costs or capital expenditures.
- An increase is void if the notice is not provided in accordance with the Act. A new
notice must be issued.
- No landlord may increase the rent by more than the guideline except in accordance
with the Act.
- Note: An added cost relating to the addition of a parking space or a prescribed
service, facility, privilege, accommodation or thing agreed to by the tenant and
landlord is not deemed to be an increase for purposes of rent increases under the
Act. If the parking space or prescribed service is no longer provided, the rent must
be reduced accordingly.
