Ontario Implements New Rent Cap Increase of 2.5% for 2024
1 min read.
In a recent announcement by the Ontario government, Municipal Affairs and Housing Minister Steve Clark revealed that Ontario landlords will be permitted to increase rent by up to 2.5 percent in the coming year. This guideline mirrors the rate set for the current year and notably falls below the average inflation rate of 5.9 percent.
Notably, the rent increase cap of 2.5 percent does not apply to rental units that were first occupied after November 15, 2018. Landlords seeking higher increases can submit applications for consideration to the Landlord and Tenant Board.
To ensure transparency and compliance, landlords must provide tenants with written notice of a rent increase at least 90 days in advance. Moreover, they are prohibited from raising rent more than once yearly, safeguarding tenants against excessive increases.
It is worth noting that the government responded to the pandemic in 2021 by implementing a rent increase guideline of zero. However, for 2022, the guideline was adjusted to 1.2 percent, and now, in 2024, landlords can benefit from the opportunity to increase rent by up to 2.5 percent.
This latest development brings a degree of predictability and stability to Ontario's rental market, enabling landlords to make reasonable adjustments while respecting the needs and rights of tenants.
Reference
Municipal Affairs and Housing. (2023, June 30). Ontario Capping Rent Increases Below the Rate of Inflation. Ontario newsroom. https://news.ontario.ca/en/release/1003223/ontario-capping-rent-increases-below-the-rate-of-inflation
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