On Wednesday, the county announced that the guideline for Ontario rent increase for 2023 is 2.5 percent.
Previously, landlords were allowed to increase rents by 1.2 percent in 2022, following a rent freeze that began in 2020 to help Ontarians start the COVID-19 pandemic.
The last time the Ontario rent increase guidelines reached 2.5 percent was in 2013.
“As Ontario households face the rising cost of living, our government is providing stability and predictability to the vast majority of tenants by limiting the rent-raising guideline to below 2.5 percent,” said Steve Clark. , Minister of Municipal Affairs and Housing. announcement on Wednesday.
The guideline is based on the Ontario Consumer Price Index, an inflation measure calculated monthly by Statistics Canada and using data that reflects last year’s economic conditions.
This follows an unprecedented move by the Bank of Canada earlier this month, raising its key interest rate by half a percentage point to 1.5 percent for the second time in two months.
If Ontario rent increases were in line with recent inflation, the 2023 guideline would have risen to 5.3%. “However, the guideline is limited to help protect tenants from significant rent increases,” the province said.
The new rental guideline comes after a report found that rental prices in Toronto have risen by 20 percent in the last year. Rents in the city averaged $ 2,474 in May, up from $ 2,035 a year ago. This marked the most substantial monthly increase in rental prices since 2019, before the pandemic began.
The government says rent increases are not automatic or mandatory. It is the maximum amount a landlord can increase tenant rent without the approval of the Landlord and Tenant Board.
Landlords must give tenants written notice at least 90 days before they can increase their rent. At least 12 months must have passed since either the first day of the lease or the last rent increase.
The rent increase for 2023 is valid from January 1 to December 31, 2023.
