Rent increase guideline

The guideline is the maximum a landlord can increase most tenants’ rent during a year without the approval of the Landlord and Tenant Board.

Rent increase guideline for 2020

The rent increase guideline is 2.2% for increases between January 1 and December 31, 2020.

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.

Previous rent increase guidelines

The chart below illustrates yearly rent increases, in Ontario, from 1991 to 2019.

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