As expected, the Ministry of Municipal Affairs and Housing has released the 2024 rent increase guideline and it’s capped at 2.5% for all rent-controlled units in Ontario that are subject to Residential Tenancies Act, 2006 (RTA). Those units first occupied since November 2018 are not subject to rent controls. In its statement, the government says,
“The Ontario government is continuing to strengthen protections for tenants by holding the rent increase guideline for 2024 at 2.5 per cent, well below the average inflation rate of 5.9 per cent. The rent increase guideline is the maximum amount a landlord can increase rent during the year for most tenants without the approval of the Landlord and Tenant Board.”
With inflation for the preceding 12 months averaging at 5.9%, the section 120 (2)(2) of the RTA indicates:
“The guideline for a calendar year shall be not more than 2.5 per cent.”
To increase the rent for the full calendar year of 2024, the landlord must properly fill out an N1 form at least 90 days in advance when the increase will start. This means landlords should send the N1 to their tenants before October 1, 2023 to start 2024 with the increased rent.
Rent increase guidelines for the last three years were 2.5% for 2023, 1.2% for 2022, and 0.0% for 2021. It recommended that landlords increase the rent when they can legally do so to keep pace with inflation.
