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Rent Increase Guidlines
Program
The annual rent increase guideline is the maximum percentage by which a landlord can increase the rent for most sitting residential tenants without approval from the Landlord and Tenant Board.
Details
- The 2010 guideline is 2.1 per cent.
- The new rent increase guideline applies to a rent increase that begins any time between January 1, 2010 and December 31, 2010 and applies to most residential units in Ontario.
- Generally, the rent for a unit can be increased if at least 12 months have passed since the tenant initially moved in or since his or her last rent increase. The tenant must be given written notice of the rental increase at least 90 days prior to the rental increase taking effect.
- The annual rent increase guideline is based on the Ontario Consumer Price Index (CPI). The 2010 rent increase guideline is calculated by averaging the percentage change in the Ontario Consumer Price Index for each of the previous 12 months from June 2008 to May 2009.
- The guideline was designed to take into account increases in landlords’ building maintenance and operating costs in order to protect tenant safety and health.
- Landlords may apply to the Landlord and Tenant Board for an increase above the guideline, if their costs for the municipal taxes or utilities have increased by more than the guideline + 50 per cent.
- Sample Rental Increase Guideline:
- The monthly rent of an apartment is $1,000 beginning September 1, 2009. With proper written 90 days notice to the tenant, the landlord could lawfully increase the rent 12 months later on September 1, 2010.
The guideline for 2010 is 2.1 per cent.
The rental increase is 2.1 per cent of $1,000= $21.00
Therefore, the new rent on September 1, 2010 could be up to $1,021 ($1,000 + $21.00)
- The monthly rent of an apartment is $1,000 beginning September 1, 2009. With proper written 90 days notice to the tenant, the landlord could lawfully increase the rent 12 months later on September 1, 2010.
- A landlord can collect a rent deposit from a new tenant on or before the start of a new tenancy. The rent deposit can only be used as the rent payment for the last month or week before the tenant moves out. The landlord must pay the tenant interest on the rent deposit every year. Under the Residential Tenancies Act, 2006, the interest rate is the same as the rent increase guideline.
For more information contact The Landlord and Tenant Board at 1.888.332.3234 or visit www.ltb.gov.on.ca.
