 On June 17th we saw the release of the latest guidance for Ontario’s 2022 Rental Rates. For the full Ontario Government Bulletin click here. The guideline from this Bulletin sets rent increases for 2022 in Ontario to 1.2%. This rate applies to most residential rental accommodations covered by the Residential Tenancies Act. As most of you know, Ontario had frozen rent increases in 2021. This was done as a financial response to tenants dealing with COVID-19 pandemic challenges. The Practice: As we look to 2022, the guideline sets the maximum Landlords can raise a tenant’s rent without seeking the approval of the Landlord and Tenant Board (LTB). Variances are possible to obtain when necessary For instance, Landlords may apply for a larger increase rate after major capital work that has been completed and other specified circumstances. The Process: Although annual increases are allowed, rent increases are not automatic or mandatory. Plus, to make desired increases legally, the Landlord must give the Tenant at least 90 days written notice of any rent increases. In addition, this notice must be done using the correct form, and can only impose increases after 12 months from date of tenancy. Important consideration for Tenants: If you believe you have received an improper increase, you must report the disputed amount with the LTB within 12 months. The Discussion LTB notices are not likely to make the top 10 in your social feeds. As a results, we hope that by providing this and similar information as it is released will result in productive and informed discussions between Tenant and Landlord. Effective communication is an important element as you both look forward to a successful 2022 and continued partnership. |
A sample calculation of a rent increase
| Monthly rent was $1,000 when the lease agreement was signed June 1, 2021. The guideline for 2022 is 1.2%. Therefore: > an increase of 1.2% on $1,000 = $12 > $1,000 + $12 = $1,012 > The landlord could lawfully increase the rent payment 12 months later, on June 1, 2022 up to $1,012 per month. Your landlord would need to provide you written notice at least 90 days before June 1, 2022. |
| As always, when you have any questions in the area of local rental levels, current property valuation or tenant management, please feel free to reach out thru any of our channels below, and we will try to get you the clarification you require. |
