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Ontario Capping Rent Increase At 2.5% For 2024
https://immigrationnewscanada.ca/wp-content/uploads/2023/06/Toronto.jpg Last Updated On 30 June 2023, 3:09 PM EDT (Toronto Time)
Ontario is keeping the rent increase guideline at 2.5% for 2024 which is significantly lower than the 5.9% average inflation rate.
The maximum annual rent increase that a landlord may impose on the majority of tenants without receiving permission from the Landlord and Tenant Board is set in the rent increase guideline.
The recommended practice is based on Statistics Canada’s calculation of the Consumer Price Index for Ontario, which accounts for inflation and reflects economic circumstances during the previous year.
To assist safeguard renters from increasing interest rates that might result in increased rent, the Residential Tenancies Act caps the guideline at 2.5%.
Without the restriction, the current inflation rate would have caused a rise of 5.9% in 2024. Here Is How International Students Can Find Rentals In Canada
“Our government knows the cost of living continues to be a challenge for many Ontarians, including renters, which is why we are holding the rent increase guideline at 2.5 percent,” said Steve Clark, Minister of Municipal Affairs and Housing.
He further added, “This choice illustrates our dedication to assisting renters throughout the province and builds on the historic tenant safeguards outlined in our recent Helping Homebuyers, Protecting renters strategy.”
The province of Ontario broke construction record on the most purpose-built rentals ever in 2022—nearly 15,000—a 7.5% increase from 2021.
More than 8,500 new rental units have been started in the province so far this year, a 77% increase over January to May of 2022.
The overwhelming majority of rental families covered by the Residential Tenancies Act—roughly 1.4 million—are subject to the rent increase guideline. https://immigrationnewscanada.ca/wp-content/uploads/2023/06/pexels-photo-8963081.jpeg Rental units inhabited for the first time after November 15, 2018, unoccupied residences, communal housing, long-term care facilities, and commercial buildings are not covered by it. Rent increases are not inescapable or required. Only after giving renters the required amount of written notice—at least 90 days—can a landlord increase rent.
The latest rent increase or the beginning day of the tenancy must have occurred at least 12 months ago.
A tenant may petition to the Landlord and Tenant Board to obtain a correction if they feel they have received an improper rent increase.
In most circumstances, 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 may submit an application to the Landlord and Tenant Board for rent increases that are higher than the recommended amount. The maximum penalty for violations of residential tenancy are the highest in Ontario. The maximum penalty for violations of the Residential Tenancies Act (such unfair evictions) are being doubled by the province to $100,000 for people and $500,000 for businesses.
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