January 1, 2020
whether you are a tenant or a landlord, you need to know that the rent increase guidelines are.
well in 2020, the rent increase guideline is 2.2% for increases between January 1 and December 31, 2020. The guideline is the maximum a landlord can increase most tenants’ rent during a year without the approval of the Landlord and Tenant Board.
Full details on the increase guideline, visit the provinces website here: https://www.ontario.ca/page/rent-increase-guideline
The following is a copy of the information available on the website above
Who it applies to
The guideline applies to most private residential rental units covered by the Residential Tenancies Act.
The guideline does not apply to:
- vacant residential units
- social housing units
- nursing homes
- commercial properties
This guideline also does not apply to new buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018.
When can rent be increased
In most cases, the rent for a unit can be increased 12 months after:
- the last rent increase
- a tenant first moves in
A tenant must be given written notice of a rent increase at least 90 days before it takes effect.
How the guideline is calculated
It is calculated using the Ontario Consumer Price Index, a Statistics Canada tool that measures inflation and economic conditions over a year. Data from June to May is used to determine the guideline for the following year.
A sample calculation
Your monthly rent was increased to $1,000 on June 1, 2019. The guideline for 2020 is 2.2%. Therefore:
- an increase of 2.2% on $1,000 = $22.00
- $1,000 + $22.00 = $1,022.00
Your landlord could lawfully increase your rent payment 12 months later on June 1, 2020 up to $1,022.00 per month
Your landlord would need to provide you written notice at least 90 days before June 1, 2020 (March 1, 2020).
Posted by dtoombs at 6:36 AM
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