Ontario Caps 2023 Residential Rent Increase Guideline at 2.5 Percent
2 min read
To continue providing affordable housing for Ontarians, the provincial government has recently announced the 2023 rent increase guideline of 2.5 percent, below current inflation rates. The guideline is the maximum amount a landlord can increase rent for that given year without the approval of the Landlord and Tenant Board.
Based on Ontario’s Consumer Price Index—the measure of inflation calculated using data that reflects economic conditions over the past year— the guideline has been significantly reduced from an expected 5.3 percent. This was done to protect tenants from significant rent increases.
Following the announcement, Steve Clark, Minister of Municipal Affairs and Housing, stated, “As Ontario families face the rising cost of living, our government is providing stability and predictability to the vast majority of tenants by capping the rent increase guideline below inflation at 2.5 percent. We continue to look for ways to make homes more attainable for hardworking Ontarians while making it easier to build more houses and rental units to address the ongoing supply crisis.”
The guideline applies to most rental households that are covered under the Residential Tenancies Act and does not apply to the following;
rental units occupied for the first time after November 15, 2018
vacant residential units
community housing
long-term care homes or commercial properties
It is essential to keep in mind that rent increases are not automatically applied or mandatory. Landlords must notify tenants of a rent increase 90 days before it goes into effect.
Reference
Ontario Caps 2023 Rent Increase Guideline Below Inflation at 2.5 Per Cent. Ontario newsroom. (n.d.). Retrieved July 5, 2022, from https://news.ontario.ca/en/release/1002167/ontario-caps-2023-rent-increase-guideline-below-inflation-at-25-per-cent
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