How often can a landlord increase the rent?
Your landlord can only increase your rent once every 12 months. You must receive 90 days written notice before the increase.
When you rent a unit for the first time, you and the landlord decide the amount of rent you will pay and what services (e.g. hydro, parking) are included. The amount of rent is based on current market prices.
The market price for a unit can be significantly higher than what the tenant before you paid. There is no maximum amount of rent that a landlord can charge a new tenant in a regular market rent apartment. Social, non-profit and student apartments may be different.
Once you have moved into a unit, the landlord must follow a rent control guideline. The Ontario Ministry of Municipal Affairs and Housing sets this guideline every year. The guideline limits how much your landlord can increase your rent that year.
In 2014, your landlord can increase your rent by 0.8% . In 2015, the limit will be 1.6% (effective January 1, 2015).
The Landlord and Tenant Board (LTB) must approve any increases above this percentage. For example, the LTB might approve a higher increase if your landlord has made large repairs or installed a security system. For more information, read the LTB's brochure, Information About Applications for a Rent Increase Above the Guideline.
It is important to note that the rent control guideline does not apply to new rental buildings. A new rental building is a building that was occupied as a residential unit for the first time starting November 1991; like a new apartment or condo building or a converted factory that is now an apartment building.
Many other rules still apply including the requirement of your landlord to serve you with a 90 day written notice before your rent is increased. Your landlord is still only allowed to increase your rent once a year. You can contact the Landlord and Tenant Board for more information.
You can contact a legal clinic or housing help centre for more information. To find help in your area, go to Services Near Me.
For More Information
- Rent Increases - This guide explains how a landlord can increase a tenant's rent according to the Residential Tenancies Act. From Community Legal Education Ontario (CLEO).
- A Guide to the Residential Tenancies Act - Explains the most important sections of the RTA. Available in more than 10 languages. From the Landlord and Tenant Board.
- Landlord and Tenant Board - Provides information about the RTA and to resolve disputes between most residential landlords and tenants.
- What Tenants Need to Know About the Law - Topics covered include rent increases, deposits and other charges, repairs and maintenance, privacy, moving out, and eviction. From Community Legal Education Ontario (CLEO).
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