While inflation is exploding – 7% so far in 2022 – most Ontario landlords will be able to legally raise rent the maximum allowable rate of 2.5% starting January 2023. Because this requires 3 months, actually 90 days, advance notice some landlords are rushing before Monday October 3rd, 2022 to serve the “Notice of Rent Increase form N1” on their tenants so they can start January 1st , 2023 with the increase.
This will not apply to 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 as they are exempt from rent control guidelines.
According to the rules, 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.
While presented by some activists as a “maximum increase”, 2.5% does not account for the rising costs of home ownership in Ontario. Labor, property taxes, transportation, maintenance costs, interest rates all have skyrocketed putting many small landlords in a very precarious position.
But the biggest challenge is the delay when landlords file at the LTB to get an eviction for non payment. LTB delays are getting longer with a minimum wait of 6 months that can go 8 months or more.
As comparison here are the recent yearly rate increases and the inflation rate:
| Year | Rent increase % | Inflation rate % |
| 2022 | 1.2 | 7.0 (*) |
| 2021 | 0.0 | 3.4 |
| 2020 | 2.2 | 0.7 |
| 2019 | 1.8 | 1.9 |
| 2018 | 1.8 | 2.3 |
(*) in June 2022
Source Statistics Canada and the Ontario Government. Image from Pixabey
Solo landlords are encouraged to consult the LTB website or a legal professional for any advice on how to complete the N1 form.
