How Much Can I Increase The Rent?
In Ontario, rental increase guidelines are based on the Ontario Consumer Price Index, a Statistics Canada tool that measures inflation and economic conditions over a year. Each summer, the Government sets the rate for the following year, and if you want to increase your Tenant’s rent during that period, you must give them a minimum of 90 days’ notice.
If you own a first-occupied property prior to November 15, 2018, you must follow these guidelines and are only permitted to increase the rent by the designated amount. While the percentage increase has varied over the past 20 years (from 0% to 3.9%), the average permissible increase since 2000 has been 2%. For 2022, the rental increase guideline was set at 1.2%.
However, if you own a property that was first occupied after November 15, 2018, you are not required to follow this guideline and are able to increase the rent to whatever you deem to be fair market value.
In both these instances, you are only permitted to increase your Tenant’s rent once every 12 months.