Ontario sets 2022 rent increase guideline at 1.2 percent

Wednesday, June 16, 2021

Ontario has released its rent increase guideline for 2022, setting it at 1.2 percent on the heels of the 2021 rent freeze. This number represents the maximum most landlords can raise their tenants’ rent between January 1 and December 31, 2022, without the approval of the Landlord and Tenant Board (LTB).

The rent increase guideline was determined using the Ontario Consumer Price Index (CPI), which measures inflation calculated monthly by Statistics Canada using data that reflects economic conditions over the past year. The guideline applies to most residential rental accommodations covered by the Residential Tenancies Act, and excludes rental units in buildings occupied for the first time after November 15, 2018, social housing units, long-term care homes and commercial properties.

Rent increases are not automatic or mandatory. Landlords may only raise rent if their tenants were given at least 90 days’ written notice using the correct form. In most cases, the rent increase cannot be more than the rent increase guideline. In addition, at least 12 months must have passed since the first day of the tenancy or the last rent increase.

Last year, Ontario passed legislation to freeze rent at the 2020 level for the vast majority of rented units covered under the Residential Tenancies Act as a way to help give Ontarians financial relief from the challenges of the COVID-19 pandemic. The rent increase freeze will end on December 31, 2021, and landlords wishing to raise rents must send a notice to tenants before the freeze is lifted.

Landlords can also apply to the Landlord and Tenant Board for above-guideline rent increases for certain circumstances, including after conducting and paying for major capital work.

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