July 3, 2007
The 2008 rent increase guideline is 1.4 per cent.
It applies to rent increases that occur in Ontario between January 1 and December 31, 2008.
The guideline is the maximum amount that a landlord can increase the rent of a tenant without obtaining the approval of the Landlord and Tenant Board.
The guideline applies to most private residential rental accommodation covered by the Residential Tenancies Act.
The rent increase guideline does not apply to:
- Vacant residential units
- Residential units first occupied on or after November 1, 1991
- Social housing units
- Nursing homes
- Commercial property.
Timing of Rent Increases
In most cases, the rent for a unit can be increased if at least 12 months have passed since a tenant first moved in, or if at least 12 months have passed since the last rent increase.
A tenant must be given proper written notice of a rent increase at least 90 days before the rent increase takes effect.
A landlord who wishes to increase the rent by an amount higher than the guideline must apply to the Landlord and Tenant Board.
Calculation of the Rent Increase Guideline
The 2008 guideline is the first guideline to be calculated under the new Residential Tenancies Act, which took effect on January 31, 2007.
Under the new act, the guideline is calculated based upon the Ontario Consumer Price Index.
The Ontario Consumer Price Index is calculated monthly by Statistics Canada, and is regarded as a reliable and objective measure of inflation, charting the change in the price of all goods and services in the provincial economy.
The 2008 rent increase guideline was calculated by averaging the percentage increase in the Ontario Consumer Price Index for each of the previous 12 months from June 2006 to May 2007.
|
June |
July |
Aug |
Sep |
Oct |
Nov |
Dec |
Jan |
Feb |
Mar |
Apr |
May |
Average |
CPI for
2005-06
|
106.8 |
106.9 |
107.5 |
108.2 |
107.7 |
107.5 |
107.6 |
108.2 |
107.9 |
108.8 |
109.1 |
109.5 |
108.0
|
| CPI for 2006-07 |
109.3 |
109.0 |
109.1 |
108.5 |
108.4 |
108.6 |
108.8 |
108.6 |
109.7 |
110.8 |
111.1 |
111.6 |
109.5
|
Percentage Increase
|
2.3 |
2.0 |
1.5 |
0.3 |
0.6 |
1.0 |
1.1 |
0.4 |
1.7 |
1.8 |
1.8 |
1.9 |
1.4 |
Past Rent Increase Guidelines
| Year |
Guideline |
| 2007 |
2.6% |
| 2006 |
2.1% |
| 2005 |
1.5% |
| 2004 |
2.9% |
| 2003 |
2.9% |
| 2002 |
3.9% |
| 2001 |
2.9% |
| 2000 |
2.6% |
| 1999 |
3.0% |
| 1998 |
3.0% |
| 1997 |
2.8% |
| Year |
Guideline |
| 1996 |
2.8% |
| 1995 |
2.9% |
| 1994 |
3.2% |
| 1993 |
4.9% |
| 1992 |
6.0% |
| 1991 |
5.4% |
| 1990 |
4.6% |
| 1989 |
4.6% |
| 1988 |
4.7% |
| 1987 |
5.2% |
| 1986 |
4.0% |
| Year |
Guideline |
| 1985 |
6.0% |
| 1984 |
6.0% |
| 1983 |
6.0% |
| 1982 |
6.0% |
| 1981 |
6.0% |
| 1980 |
6.0% |
| 1979 |
6.0% |
| 1978 |
6.0% |
| 1977 |
8.0% |
| 1976 |
8.0% |
| 1975 |
8.0% |
- 30 -
Contact:
Kevin Sullivan
Housing Policy Branch
416 585-6541