Receiving a notice of rent increase can be stressful. If the increase is valid, you will have to pay more rent regardless of your personal situation. If you do receive a notice of rent increase, you should know that there is a chance that the increase may be deemed invalid.

It is extremely important to note that your rent increase must be served correctly, have the information properly filled out, and with the correct amounts to be considered valid.

When can my landlord raise my rent?

After you move in, your landlord must wait at least 12 months before raising your rent. And any increases after that must also be 12 months apart.

How much notice must be given for rent increases?

Your landlord must give you a written notice at least 90 days before your rent goes up. The notice should be on one of the forms from the Landlord and Tenant Board (LTB). If your landlord does not use the LTB form, the notice might still be valid if it includes all the information that is on the LTB form.

How much can my rent go up?

In most cases, your landlord can only raise your rent by a percentage called the guideline. The guideline is set by the provincial government every year. For the year 2024, the guideline is 2.5%. The guideline for the year 2023 was 2.5%.

Does the guideline apply to all tenants?

The guideline amount does not apply to:

• a building or new addition that had no one living in it on or before November 15, 2018

• a self-contained apartment created after November 15, 2018, in a house that contained no more than two units on or before that date, if:

  • the owner lived in the house at the time the apartment was first lived in, or

  • the apartment was created in previously unfinished space

In these units, the landlord can normally increase the rent by any amount they choose. But the 12-month and 90-day rules still apply.

Can my landlord increase my rent above the guideline?

Your landlord can apply to the LTB for permission to raise the rent by more than the guideline. Your landlord still must wait 12 months between increases and give 90 days’ written notice. This kind of rent increase is sometimes called an above guideline increase or AGI.

The LTB even allowed AGIs during the 2021 rent freeze.

What happens if my landlord applies for an AGI?

The LTB will have a hearing to decide. The hearing is usually in writing or by phone or video. The LTB will send you a copy of the landlord’s application with information about how to participate in the hearing.

Check the application to see if other tenants in your building are affected too. You might be able to work together to fight the increases.

How much can the LTB allow?

The LTB can allow an increase of up to 3% above the guideline for up to 3 years in a row for the cost of security services or for capital expenses. Capital expenses are major repairs, renovations, replacements, or additions that will last at least 5 years and are not part of normal ongoing maintenance.

The LTB can also allow any amount of rent increase if there are very large increases in municipal taxes and charges.

What if I think that I paid an illegal rent increase?

You can apply the LTB to get your money back at tribunalsontario.ca/ltb. You must apply within one year of the date that your landlord first charged you the illegal rent. CLEO’s T1 Guided Pathway can help you fill out the forms you need to apply. Visit stepstojustice.ca/FormT1 for more information.

Do the rules about rent increases apply to all renters in Ontario?

This booklet is for tenants who are protected by the Residential Tenancies Act (RTA). The RTA applies to most rental housing in Ontario.

But some rental housing is not protected by the RTA. For example, you might not be protected if you live in seasonal housing, rent from another tenant, or you must share a kitchen or bathroom with the property owner or their close family members.

If you are not protected by the RTA, your landlord can raise your rent as much as they want and whenever they want, unless your
rental agreement says they cannot.

It is a good idea to get legal help if you are not sure if these rent rules apply to you

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