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Rent Increases

 

rent increases

This document is part of the Tenant Protection Act. It details the provisions allowed for property landlords under Section 135 of the Act in increasing rent from property occupied by a tenant.  Click here to view the pamphlet on the ‘Rules About Rent’.

Maximum Rent

Landlords are allowed to increase the rent they charge tenants to a ceiling of maximum rent for units that have been occupied since June 16, 1998 (The Tenant Protection Act itself had been enacted on June 17, 1998).

The provision of maximum rent is a legal allowance. It is the highest sum that a landlord can charge including all any and all provisions availed during the preceding legislation. No further provisions to increase rent are issued after that date.

Increase in rent

The following illustration seeks to clarify this provision:

Assuming that in January 1995 was paying rent to the landlord in the amount of $500.00 per month. 

The rental guideline for 1996 was set to 2.8%; the maximum rent then that the landlord could charge would have been ($500 + 2.8%) $514 per month.

The rent guideline for 1997 was also set to 2.8%; the maximum rent then that the landlord could charge would have been ($514 + 2.8%) $528.39 per month.

The rent guideline for 1998 was 3.0%; the maximum rent then that the landlord could charge would have been ($528.39 + %3.0) $544.24 per month.

But if the landlord chose not to increase the rental amount during any of these periods. That is, the rental remained the same at $500 per month. By June 1998 the difference between the maximum rent and actual rent paid by the tenant would have been $44.24 per month.

High Rent

The maximum rent applies only if the tenant had been occupying the unit since June 16, 1998 and continues to do so. If the tenant has occupied the unit since and assigns it to another tenant then the maximum rent applies to the new tenant as well.

In the case of maximum rent, in accordance with The Tenant Act, a landlord can choose to increase rent to the maximum amount without first seeking the approval of the Tribunal – even if the amount of increase is greater than the guideline for that year.

In such a case, the landlord needs to inform the tenant of such an increase at least 90 days before doing so.

Rent Increase Guideline

The rent increase guideline is elaborated in ‘The Year 2005 Rent Increase Guideline’. Click here to access the pamphlet on ‘The Year 2005 Rent Increase Guideline.’

The details on the rent increase guideline can be found in the sections mentioned below:

Section 129                    Rent increase guideline

Sections 138 & 139        Landlord application for a rent increase above the guideline

This section can be found within The Law section of our website inside the Tenant Protection Act.

The Table of Operating Cost Categories set out in Ontario Regulation 233/04 is the basis for the 2005 guideline. It can be found in The Law Section of our website.

A new regulation comes out each year with a new table of operating cost categories.

Increase Above the Guideline

rentals

The Tribunal’s pamphlet further elaborates on the ‘Information About Applications for a Rent Increase Above the Guideline’. The document can be accessed within the Forms & Publications section of our website.  

The landlord can apply to the Tribunal in increasing the rent above the guideline the reasons for which can be found within sections 138 and 139 of the Tenant Protection Act. These can be accessed at The Law section of our website by visiting the Tenant Protection Act.

Notices & Applications

The forms which the landlord needs to use to apply for an increase in rent can be accessed at the Forms & Publications section of our website.

 

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