Your Guide to Increasing Rent in Ontario 

The process of increasing rent in Ontario is governed by rules and regulations outlined in the Residential Tenancies Act (RTA). As a landlord in Ontario, it is important to understand the rules surrounding rent increases and ensure you are complaint with those rules. We will explore the steps that are involved when increasing rent, and things to keep in mind as a landlord or tenant.

The Legal Framework

In the province of Ontario, the RTA governs the relationship between landlords and tenants. It has rules surrounding rent increases. Furthermore, rent increases per year are calculated using the Ontario Consumer Price Index. There is a rent increase guideline, and a cap set per year, it is calculated in relation to current inflation rates and economic conditions.  

Rent Increase Guidelines

A landlord cannot increase a tenants rent more than the rent increase guideline without getting approval from the Landlord Tenant Board (LTB). If you are a landlord in Ontario, it is important to consider all the rules and regulations surrounding rent increases. In most cases, rent can be increased once every 12 months. A written notice of 90-days must be given to the tenant, prior to charging them a rent increase.

Increasing Above the Rent Increase Guideline

There are multiple scenarios where a landlord can apply to the Landlord Tenant Board (LTB) for an above guideline rent increase, these include:

·        Capital Expenditures done by the landlord

·        Landlord’s municipal costs have increased

·        Landlord’s costs for security services increased

The Landlord Tenant Board would make the final decision on whether they approve the rent increase, up to 3 % per year until the costs associated with the landlord’s reasons for rent increase, are paid off.

Conclusion

If you are a landlord in Ontario and are looking to increase your tenants rent, ensure to follow the rules and regulations and understand the legal framework surrounding it.

Obtaining assistance from a landlord tenant paralegal is advised, feel free to contact HSB Legal Services if you are searching for a “landlord tenant paralegal near me.”