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A rent increase is the maximum amount a landlord can increase rent during the year for most tenants without the approval of the LTB (Ontario Landlord and Tenant Board).
After a freeze on all rent increases for 2021, and a slight 1.2% increase in 2022, the Ontario government announced a 2023 Rent Increase of 2.5%.
Landlords can raise rent if they give tenants at least 90 days’ written notice using the correct landlord form, an N1, Notice of Rent Increase. In addition, at least 12 months must have passed since the first day of the tenancy or the last rent increase.
There are several major exemptions to rent control you should note:
1. New Tenants
When tenants turnover and a new tenant moves in, the landlord can set the new rent price at whatever they like.
2. New Buildings
If the building was built after 2018, no rent control applies. This means that even if it’s been the same tenant with the same lease for the last few years, if they are living in a building that was recently built then the landlord can increase the rent by as much as they like, as long as they give 90 days’ notice and don’t increase rent more than once per year.
3. New Units
If the unit is new (but the building is not) then no rent control applies. For example, if your house is from 1985 but you renovated the basement after 2018 and it became a basement apartment then the basement apartment is considered a new unit. The landlord can increase the rent by as much as they like as long as they give 90 days’ notice and don’t increase rent more than once per year.
If you have any questions don’t hesitate to reach out. info@minkgroup.ca
