Rent Increase Guideline for 2023

July 18th, 2022 by Hunter Stone

Earlier this year we wrote about the rent increase guidelines for 2022, which lists the current allowable amount a landlord can increase their tenants’ rent by 1.2 per cent.

On June 29, 2022, the Government of Ontario stated the rent increase guideline for 2023 will be 2.5 per cent, noting this rate is below that of inflation. The last time a rent increase guideline was 2.5 per cent was in 2013.

The rent increase guideline is determined by the Ontario Consumer Price Index (the OCPI), which measures inflation calculated by Statistics Canada using information reflected on economic conditions during the year. Based on the OCPI, inflation would result in a guideline of 5.3 per cent, according to the Government of Ontario. However, the Government of Ontario has capped that amount “to help protect tenants from significant rent increases.”

This rental increase will affect renters of condominiums, houses, and apartments which are governed by the Residential Tenancies Act. Rental increases are not automatic or mandatory and landlord must give a tenant appropriate notice, using a form provided by the Landlord and Tenant Board (the LTB). Two‑and‑a‑half per cent will be the maximum amount that an Ontario landlord can increase their tenants’ rent without the approval of the LTB. Additionally, 12 months must have passed since the first day of the tenancy or the last rent increase.  Landlords who want to give a greater increase in rent must apply to the LTB for an “above guideline increase,” but current wait‑times at the LTB are so lengthy, a landlord would wait a year+ for a hearing.

Housing co‑ops are not governed by the provincial guideline. They democratically decide their annual budget, including the amount each household pays each month.

Our housing provider clients will find relief to have higher revenues, compensating for increased costs of running their business in years past.

If you’re a landlord or a tenant and require assistance with LTB formalities, we may be able to assist you. Feel free to contact our office, here.

Filed in: Firm News, Housing, IC Education Resources, Litigation

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