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17th
Jan

Ontario Landlords Can Raise The Rent 1.8% in 2018

Posted by Nicholas Searle ot 03:20 PM

The rent control guideline in Ontario tells residential landlords how much they can raise the rent in a given year. The rent increase is linked to the Consumer Price Index. The Ministry of Housing uses it to find out the level of inflation based on prices of such things as groceries and the cost of buying clothes. Based on the Consumer Price Index for 2018, landlords can raise the rent by a maximum of 1.8%. So for example, if your rent is $2,000 per month the landlord can increase it by $36.00 per month. This maximum cap applies for the period of January 1, 2018 to December 31, 2018.

Ontario landlords cannot apply to raise rents above the 1.8%, even if they expect much higher utility bills this year. This is one of the reasons why landlords are not renting out their condos inclusive of utilities. Landlords have to go through the Landlord and Tenant Board process if they want to raise the rent at more than 1.8% this year. This process is complicated and can be time consuming.

Previously Ontario rent control guidelines only were for rental properties that were built prior to November 1991. However, the Rental Fairness Act (2017) expanded rent control to all private rental units, including condos for rent and new houses or townhomes. For rent increase notices given on or after April 20, 2017, Ontario landlords cannot raise rents more than the rent increase guideline.

Another change in the Ontario Rental Fairness Act relates to if landlords want to re-occupy their condos for personal use. Under the old system, landlords could give a tenant 60 days notice if they were “month-to-month” tenants. Under the new system, the landlord must pay one month's rent to the tenants, or offer another similar unit to tenants.

Keep in mind that the rules do not apply to social housing units, nursing homes or commercial property. In most cases, the landlord can increase the rent 12 months after the last rent increase and/or when a tenant first moves in. At least 90 days written notice of a rent increase must be given to a tenant before it takes effect. A landlord can still ask a tenant to vacate a condo or house after a firm offer of sale has been accepted. 


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