Residential Rent Increase for 2022

January 5, 2022

Rules for rent increase

In most cases, the rent for a residential unit can be increased 12 months after either:

  • the last rent increase
  • the date the tenancy begins

The landlord must give a tenant written notice of a rent increase at least 90 days before it takes effect.

The proper forms for this notice are available from the Landlord and Tenant Board. If your landlord has not provided the proper notice, or you believe that your rent has been raised by an improper amount, you can dispute it at the Landlord and Tenant Board within 12 months after the amount was first charged.

Rent increase guideline

The rent increase guideline for 2022 is 1.2%.

The guideline is the maximum a landlord can increase most tenants’ rent during a year without the approval of the Landlord and Tenant Board.

For most tenants, your rent can’t go up by more than the rent increase guideline for every year.

The guideline applies to most private residential rental units covered by the Residential Tenancies Act, 2006. This applies to most tenants, such as those living in:

The guideline does not apply to certain types of units including:

  • vacant residential units
  • community housing units
  • long-term care homes
  • commercial properties

Social housing is covered by the Residential Tenancies Act, but has different rules regarding rent control and rent increase notices.

How they calculate the guideline

It is calculated using the Ontario Consumer Price Index, a Statistics Canada tool that measures inflation and economic conditions over a year. Data from June to May is used to determine the guideline for the following year.

Exceptions

  • In some cases, landlords can apply to the Landlord and Tenant Board for approval to raise your rent (PDF) by more than the rent increase guideline if they are for costs related to eligible capital repairs and security services, but not if they are for extraordinary increases in municipal taxes and charges.
  • In care homes (such as a retirement home), the rent increase guideline only applies to the rent portion of your bill but does not apply to the cost of services like nursing, food or cleaning.
  • New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018 are exempt from rent control.
  • Tenants and landlords can still agree on rent increases in exchange for an extra service or facility (for example, air conditioning or parking)

New buildings and additions

If there is a dispute about new buildings and additions, the landlord must prove that the building or addition was first occupied for residential purposes after November 15, 2018.

Landlords might want to keep records, such as:

  • building permits, permit applications and plans
  • occupancy permits
  • new home warranty documents
  • documents from the builder

New units in existing houses

If there is a dispute about new units in existing houses, the landlord must prove that the new unit was completed after November 15, 2018.

The landlord must also prove either:

  • the unit was built in a previously unfinished space like a basement or attic
  • the owner lived in another part of the house when the new unit was first occupied

Landlords might want to keep records, such as:

  • documents from the builder or invoices from the contractor
  • “before and after” photographs
  • building permits, permit applications and plans

Resolving issues about rent control

As a tenant or a landlord, you can contact the Landlord and Tenant Board to determine whether a unit is exempt from the rent increase guideline.

To show that a unit is exempt from rent control, landlords can:

  • include an additional term under section 15 of the lease stating that the unit is exempt from the rent increase guideline
  • keep records that prove the exemption – in case the tenant asks, or there is a dispute

For those who were looking for rules on rent increases in Ontario please go to the following two links

Ontario Rent Increase Guideline and the present Landlord and Tenant Act, Ontario

Remember these are the Ontario maximum yearly rent increases permitted without the landlord applying for more and having it approved. Actual rent increases where the landlord applied for “above guideline rent increases” were sometimes substantially more for individual buildings.

Previous rent increase guidelines

The chart below illustrates yearly rent increases, in Ontario, from 1975 to 2022.

Amount Period Ontario Statute
1.2 % January 1 – December 31, 2022 Residential Tenancies Act, 2006
0.0 % January 1 – December 31, 2021 Residential Tenancies Act, 2006
2.2 % January 1 – December 31, 2020 Residential Tenancies Act, 2006
1.8 % January 1 – December 31, 2019 Residential Tenancies Act, 2006
1.8 % January 1 – December 31, 2018 Residential Tenancies Act, 2006
1.5 % January 1 – December 31, 2017 Residential Tenancies Act, 2006
2.0 % January 1 – December 31, 2016 Residential Tenancies Act, 2006
1.6 % January 1 – December 31, 2015 Residential Tenancies Act, 2006
0.8 % January 1 – December 31, 2014 Residential Tenancies Act, 2006
2.5% January 1 – December 31, 2013 Residential Tenancies Act, 2006
3.1 % January 1 – December 31, 2012 Residential Tenancies Act, 2006
0.7 % January 1 – December 31, 2011 Residential Tenancies Act, 2006
2.1 % January 1 – December 31, 2010 Residential Tenancies Act, 2006
1.8 % January 1 – December 31, 2009 Residential Tenancies Act, 2006
1.4 % January 1 – December 31, 2008 Residential Tenancies Act, 2006
2.6 % January 1 – December 31, 2007 Tenant Protection Act, 1997 (TPA),
From January 1 to Jan. 30, 2007, and
Residential Tenancies Act, 2006 from January 31, to Dec. 31, 2007
2.1 % January 1 – December 31, 2006 Tenant Protection Act, 1997 (TPA),
as amended June 17, 2004 (to remove the annual 2% management bonus for landlords)
1.5 % January 1 – December 31, 2005 Tenant Protection Act, 1997 (TPA),
as amended June 17, 2004 (to remove the annual 2% management bonus for landlords)
2.9 % January 1 – December 31, 2004 Tenant Protection Act, 1997 (TPA)
2.9 % January 1 – December 31, 2003 Tenant Protection Act, 1997 (TPA)
3.9 % January 1 – December 31, 2002 Tenant Protection Act, 1997 (TPA)
2.9 % January 1 – December 31, 2001 Tenant Protection Act, 1997 (TPA)
2.6 % January 1 – December 31, 2000 Tenant Protection Act, 1997 (TPA)
3.0 % January 1 – December 31, 1999 Tenant Protection Act, 1997 (TPA)
3.0 % January 1 – December 31, 1998 Rent Control Act, and from June 17, 1998 onwards the Tenant Protection Act, 1997 (TPA)
2.8 % January 1 – December 31, 1997 Rent Control Act, 1992 (RCA)
2.8 % January 1 – December 31, 1996 Rent Control Act, 1992 (RCA)
2.9 % January 1 – December 31, 1995 Rent Control Act, 1992 (RCA)
3.2 % January 1 – December 31, 1994 Rent Control Act, 1992 (RCA)
4.9 % January 1 – December 31, 1993 Rent Control Act, 1992 (RCA)
6.0 % January 1 – December 31, 1992 Residential Rent Regulation Act (RRRA)
5.4 % January 1 – December 31, 1991 Residential Rent Regulation Act (RRRA)
4.6 % January 1 – December 31, 1990 Residential Rent Regulation Act (RRRA)
4.6 % January 1 – December 31, 1989 Residential Rent Regulation Act (RRRA)
4.7 % January 1 – December 31, 1988 Residential Rent Regulation Act (RRRA)
5.2 % January 1 – December 31, 1987 Residential Rent Regulation Act (RRRA)
4.0 % August 1, 1985 – December 31, 1986 Residentail Tenancies Amendment Act * and the Residential Rent Regulation Act **
6.0 % December1, 1979 – July 31, 1985 Residential Tenancies Act *
6.0 % October 27, 1997 – November 30, 1979 Residential Premises Rent Review Act, 1975, (2nd Session) *
8.0 % July 29, 1975 – October 26, 1977 Residential Premises Rent Review Act, 1975, (2nd Session) *

 

*   These three statutes applied only to residential rental buildings first occupied prior to January 1, 1976. While these statutes were in effect, there were no limits on rent increases in buildings first occupied on or after that date.

**  The Residential Rent Regulation Act applied to residential rental buildings regardless of the date of first occupancy. It was enacted on December 4, 1986, but established a 4% guideline retroactive to August 1, 1985, on all rental buildings.