Rent Increase Guideline as of January 1, 2022

January 14th, 2022 by Hunter Stone

The province set the rent increase guideline at 1.2 per cent as of January 1, 2022. The rent increase guideline is determined by the Ontario Consumer Price Index, which measures inflation calculated by Statistics Canada using information reflected on economic conditions during the year. This year’s guideline increase is lower than 2020’s 2.2 per cent increase and comes after a year‑long rent freeze in 2021 in response to the pandemic.

This rental increase affects renters of condominiums, houses, and apartments, governed by the Residential Tenancies Act. A rental increase is not automatic and landlords must give appropriate notice to the tenant before a rental increase will take effect. This 1.2 per cent increase is the maximum an Ontario landlord can increase their tenants’ rent without the approval of the Landlord and Tenant Board.

In Q4 of 2021, reports that the average rent was $2,090, a total year over year growth of 5.3%.This increase comes at a time where many Ontarians are still getting their footing in this new economy. Many of our housing provider clients will be relieved though to have increased revenues to offset the higher costs of doing business in the last year. Regardless, we can all agree that Ontario needs more affordable housing options.

If you’re a landlord or a tenant and need assistance with the formalities of a rent increase, we may be able to assist you. Feel free to contact our office, here.

Filed in: Co-operative Law, Housing, Litigation

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