Rent increases for the one million tenant households in Ontario cannot exceed 2.5 percent over the next year, unless a landlord makes a successful application to the Landlord Tenant Board.
The McGuinty government passed legislation on June 13, 2012 to amend the Residential Tenancies Act, 2006 to ensure that the Rent Increase Guideline is capped at 2.5 percent.
Without the cap, the guideline would have been 2.6 percent in 2013.
The annual Rent Increase Guideline continues to be based on Ontario’s Consumer Price Index (CPI), which is a measure of inflation calculated monthly by Statistics Canada.
The 2013 guideline applies to rent increases between Jan. 1 and Dec. 31, 2013.
“The cap on the Rent Increase Guideline helps ensure that more tenants have access to affordable housing and provides stability for renters to improve their quality of life,” said Minister of Municipal Affairs and Housing Kathleen Wynne.
The average yearly increase from 2004-2012 was two percent. The average yearly increase from 1993-2003 was 3.1 percent.
The 2013 Rent Increase Guideline is calculated pursuant to the Residential Tenancies Act, 2006, and is based on the Ontario Consumer Price Index.