Increased Rents in the GTA
Attention all renters living in the GTA! Do you know what a rent increase is? It’s the amount your landlord can increase your rent each year without getting approval from the Ontario Landlord and Tenant Board (LTB).
In 2021, all rent increases were frozen due to the COVID-19 pandemic. However, in 2022, the rent increase was set at 1.2%. And for 2023, the Ontario government has announced a rent increase of 2.5%. This means that your landlord can increase your rent by up to 2.5% if they give you at least 90 days’ written notice using the correct landlord form, an N1 Notice of Rent Increase. Also, at least 12 months must have passed since the first day of your tenancy or your last rent increase.
But did you know that there are some major exemptions to rent control that you should be aware of? Here are three important ones:
New Tenants
If you’re a new tenant moving in, your landlord can set the rent price at whatever they like. This means that the rent for a new tenant may be higher than the rent for someone who has been living in the same place for a long time.
New Buildings
If the building you live in was built after 2018, no rent control applies. This means that your landlord can increase your rent by as much as they want, as long as they give you 90 days’ notice and don’t increase your rent more than once per year.
New Units
If your unit is new (but the building is not), no rent control applies. For example, if you live in a house that was built in 1985, but the basement was renovated after 2018 and became a basement apartment, the landlord can increase the rent by as much as they want, as long as they give you 90 days’ notice and don’t increase your rent more than once per year.
To check out the most recent rental rates in Ontario, you can visit RentPanda.ca and compare how much you’re paying with other properties.
If you want to read the full rent increase guideline document, you can visit https://news.ontario.ca/en/release/1002167/ontario-caps-2023-rent-increase-guideline-below-inflation-at-25-per-cent.
Remember, it’s important to know your rights as a renter, and to be aware of any exemptions to rent control.
