Ontario Rent Freeze for 2021

January 6, 2021

Rent Freeze for 2021

The Government of Ontario has passed legislation to freeze rent at 2020 levels. This means that rents will not increase in 2021 for the vast majority of rented units covered under the Residential Tenancies Act.

The rent freeze applies to most tenants living in:

  • rented houses, apartments and condos (including units occupied for the first time for residential purposes after November 15, 2018)
  • basement apartments
  • care homes (including retirement homes)
  • mobile home parks
  • land lease communities
  • rent-geared-to-income units and market rent units in community housing
  • affordable housing units created through various federally and/or provincially funded programs

While the rent freeze will end on December 31, 2021, landlords can give proper 90 days’ notice beforehand for a rent increase that takes effect in 2022.

Exceptions

  • Above guideline increases approved by the Landlord and Tenant Board prior to October 1, 2020 may be applied to 2021 rents. New above guideline increases may still be approved by the Landlord and Tenant Board and may still be applied to 2021 rents 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.
  • Tenants and landlords can still agree on rent increases in exchange for an extra service or facility (for example, air conditioning or parking)

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.

Amount Period Ontario Statute
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.