Ontario has capped rent increases for most households at 2.5 per cent for 2023, which is below the rate of inflation.
In a news release issued Wednesday, the province said it applies to “the vast majority” — around 1.4 million — of rental homes covered by the Residential Tenancies Act.
However, the government noted it doesn’t apply to rental units occupied for the first time after Nov. 15, 2018, vacant units, community housing, long-term care and commercial properties.
The statement said the cap is based on Ontario’s Consumer Price Index, which is a measure of inflation calculated monthly.
Because of recent high inflation figures, this would have resulted in a guideline of 5.3 per cent “however the guideline is capped to help protect tenants from significant rent increases,” the release said.
“As Ontario families face the rising cost of living, our government is providing stability and predictability to the vast majority of tenants by capping the rent increase guideline below inflation at 2.5 per cent,” Minister of Municipal Affairs and Housing Steve Clark said.
The province said landlords cannot increase rent more than 2.5 per cent from Jan. 1 to Dec. 31, 2023 without the approval of the Landlord and Tenant Board, such as after eligible capital work has been paid for and completed.
The province also noted that landlords can only increase rent if they give tenants at least 90 days’ notice using the correct form, and after at least 12 months have passed since the first day of tenancy or the last rent increase.
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