Ontario Rent Increase Guidelines: How Much Can Landlords Raise Rent in 2024?

How Much Are You Allowed to Raise Rent Every Year in Ontario?

As a landlord in Ontario, knowing how much you can legally raise rent each year is crucial for maintaining your property investment while complying with provincial regulations. At LSK Property Management, we provide insights into Ontario’s rent increase guidelines to help you navigate these rules effectively.

The Annual Rent Increase Guideline

In Ontario, the government sets an annual rent increase guideline that landlords must follow. For 2024, the guideline is 2.5%. This means:

1. Maximum Increase: Landlords can increase rent by a maximum of 2.5% without needing approval from the Landlord and Tenant Board (LTB).
2. Frequency of Increases: Rent can only be increased once every 12 months.
3. Notice Requirement: Landlords must provide tenants with at least 90 days’ written notice before implementing a rent increase.

How to Calculate the Rent Increase

To determine how much you can raise the rent, use the following formula:

For example, if your current rent is $1,200:

This means your new rent would be $1,230 per month.

Exceptions to the Guideline

While the 2.5% cap applies to most residential tenancies, there are exceptions:

1. New Buildings: Rental units first occupied after November 15, 2018, are exempt from the rent increase guideline.
2. Above-Guideline Increases: Landlords can apply to the LTB for an above-guideline increase if they have incurred significant increases in operating costs, such as property taxes or utilities.

For more information on above-guideline increases, refer to the Landlord and Tenant Board website.

Important Considerations

• Documentation: Always keep records of previous rental agreements and any notices served to tenants.
• Legal Compliance: Ensure that your notice of rent increase complies with the requirements set out in the Residential Tenancies Act.

Conclusion

Understanding your rights and obligations regarding rent increases is essential for successful property management in Ontario. By adhering to the annual guideline and being aware of exceptions, landlords can maintain compliance while managing their rental properties effectively.At LSK Property Management, we offer comprehensive support for landlords navigating these regulations. For more information on our services or assistance with managing your rental properties, visit our landlord services page or contact us directly.