The Ontario government is officially capping the 2024 rent increase policy at 2.5 percent — the same policy as last year and below the average inflation rate of 5.9 percent.
The policy is the maximum amount a landlord can increase the rent by during the year for most tenants without landlord and tenant committee approval.
Buildings can continue to demand rent increases above benchmarks when upgrades or renovations are undertaken. This is a commonly abused rule that needs to be checked.
— Uro (@coldrobotheart) June 30, 2023
The province says the policy is based on Ontario’s consumer price index, a measure of inflation calculated by Statistics Canada using data reflecting past economic conditions.
The rent increase directive applies to the vast majority, i.e. around 1.4 million rented households, who fall under the Housing Rent Act.
The Ontario government must freeze any rent increases at zero for the foreseeable future. They also need to fund more affordable and income-focused rental housing.
— Bill Bott (@BillPetes1987) June 30, 2023
It does not apply to rental units, vacant residential units, community, residential, nursing homes or commercial properties that were occupied for the first time after November 15, 2018.
Rent increases are not automatic or mandatory, and landlords can only increase rent if they give tenants 90 days written notice. In addition, at least 12 months must have passed since the first day of rental or the last rent increase.