Ontario is capping rent increases at 1.8% next year

Jun 23 2017, 10:34 pm

The province announced it will be capping the annual rent increase guideline of 1.8% next year.

A part of Ontario’s rent control rules to help keep affordable accommodation in the province for more than 250,000 people, the rent increase guideline is the maximum landlords can raise a tenant’s rent without the approval of the landlord or the Tenant Board.

The increase is applicable between January 1 and December 31, 2018, and is based on the Ontario Consumer Price Index, a measure of inflation calculated by Statistics Canada that reflects economic conditions over the past year.

“The expansion of rent control across our province has ensured that 250,000 more people are now protected from unfair and unpredictable rent increases,” said Chris Ballard, Minister of Housing and Minister Responsible for the Poverty Reduction Strategy, in a statement. “When I speak to Ontarians, the impact is clear – by making the housing system fairer, we’re ensuring that everyone in Ontario has the peace of mind they need to put down roots in the communities they love.”

The recently passed Rental Fairness Act, 2017 expanded rent control to all private rental units, including those occupied on or after November 1, 1991 – a loophole which was the reason this all came to light. For rent increase notices given on or after April 20, 2017, landlords cannot raise rents more than the rent increase guideline.

In 2017, the increase rate was 1.5%, and previous to that in 2016, it was at 2%.

There are approximately 1.2 million private rental households in Ontario, according to the province. This guideline is not applicable to: vacant residential units, social housing units, nursing homes or commercial property.

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