Ontario Capping rent increase by 2.5% for 2024

Last updated June 30, 2023, 3:09 PM EDT (Toronto time)

Ontario maintains its rent increase guideline at 2.5% for 2024, which is significantly below the average inflation rate of 5.9%.

The rent increase guideline states the maximum annual rent increase that a landlord may impose on the majority of tenants without the consent of the landlord and the tenant board.

The recommended practice is based on Statistics Canada’s calculation of the consumer price index for Ontario, which takes into account inflation and economic conditions from the previous year.

To help protect tenants against rising interest rates that could lead to higher rents, the Housing Rent Act sets the guideline at 2.5%.

Without the restriction, current inflation would have increased by 5.9% in 2024.

“Our government knows that the cost of living remains a challenge for many Ontario residents, including renters, which is why we are keeping the rent increase guideline at 2.5 percent,” said Steve Clark, Secretary of Municipal Affairs and Housing.

He further added, “This choice illustrates our commitment to helping tenants across the county and builds on the historic tenant safeguards outlined in our recent Helping Homebuyers, Protecting Renters strategy.”

The province of Ontario broke the construction record in 2022 with the most purpose-built rental homes ever – nearly 15,000 – a 7.5% increase from 2021.

More than 8,500 new rental units have started in the province so far this year, a 77% increase from January to May 2022.

The vast majority of rental families that fall under the Housing Rent Act, about 1.4 million, fall under the rent increase directive.

Rental units that are occupied for the first time after November 15, 2018, vacant homes, communal homes, long-term care institutions and commercial buildings are not included.

Rent increases are not inevitable or required. Only after tenants receive the required amount of written notice — at least 90 days — can a landlord increase the rent.

The last rent increase or the start date of the rent must have been at least 12 months ago.

A tenant can submit a petition to the landlord and the tenants’ council for correction if he believes he has received an unjustified rent increase.

In most cases, the rent increase cannot exceed the guideline for rent increases.

Under certain conditions, such as after qualified capital work has been paid for and completed, landlords can apply to the Landlord and Tenant Council for rent increases in excess of the recommended amount.

The maximum fine for tenancy violations is the highest in Ontario.

The maximum fine for violations of the Residential Tenancy Act (such as unfair evictions) is doubled by the county to $100,000 for individuals and $500,000 for businesses.

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