The 2013 Rent Increase Guideline
The annual Rent Increase Guideline is a calculation based on the Ontario Consumer Price Index as compiled by Statistics Canada.
The Rent Increase Guideline applies to most private residential rental accommodation covered by the Residential Tenancies Act, 2006 (RTA).
The guideline does not apply to:
- Vacant residential units
- Residential units first occupied on or after November 1, 1991
- Social housing units
- Nursing homes
- Commercial property
Timing of Rent Increases
In most cases, the rent for a unit can be increased if at least 12 months have passed since a tenant first moved in, or if at least 12 months have passed since the last rent increase.
A tenant must be given proper written notice of a rent increase (at least 90 days before the rent increase takes effect).
Calculation of the Guideline
The rent increase guideline is calculated under the Residential Tenancies Act, 2006 (RTA), and is based on the Ontario Consumer Price Index, which is calculated monthly by Statistics Canada. Ontario passed legislation on June 13, 2012 to amend the Residential Tenancies Act, 2006 to ensure that the Rent Increase Guideline is capped at 2.5 per cent.
The 2013 rent increase guideline was calculated by averaging the percentage increase in the Ontario Consumer Price Index during the previous 12 months, from June 2011 to May 2012. Since the average CPI was 2.6 per cent, the amended legislation capped the guideline at 2.5 per cent.
Sample Rent Increase Calculation
The monthly rent of an apartment is $1,000 beginning August 1, 2012.
With proper written 90 days notice to the tenant, the landlord could lawfully increase the rent 12 months later on August 1, 2013.
- The guideline for 2013 is 2.5 per cent.
- The rent increase is 2.5 per cent of $1,000 = $25.
- Therefore, the new rent on August 1, 2013 could be up to $1025 ($1000 + $25).
Previous Rent Increase Guidelines