The 2007 guideline is 2.6 percent. This guideline is in effect from January 1, 2007, to December 31, 2007.
Tenant Protection Act, 1997
On June 17, 2004, the government amended the Tenant Protection Act, 1997 to remove the 2 per cent base from the guideline calculation. As a result, the rent increase guideline reflects only increases in landlords’ operating costs.
The Residential Tenancies Act, 2006
The Residential Tenancies Act, 2006 received Royal Assent on June 22, 2006. The new legislation will give tenants more protection while keeping Ontario’s rental housing market strong.
Pending proclamation, under the Residential Tenancies Act, 2006, a guideline will be announced in August 2007 to take effect for 2008. For more information on the Residential Tenancies Act, 2006, please visit www.mah.gov.on.ca and click on “Residential Tenancies”.
The 2007 guideline will not be changed when the Residential Tenancies Act, 2006 is proclaimed.
Annual Rent Increase Guideline
The annual guideline is the maximum amount that most landlords can increase a tenant’s rent without making an application to the Ontario Rental Housing Tribunal.
The guideline applies to most private residential rental accommodation covered by the Tenant Protection Act, 1997. The guideline does not apply to residential dwellings first occupied on or after
November 1, 1991, nor does it apply to social housing units and nursing homes.
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 since his or her last rent increase. The tenant must be given proper written notice of the rental increase at least 90 days before the rent increase takes effect.
The 2007 guideline of 2.6 per cent is based on eight common costs involved in the operation of rental housing such as maintenance, hydro, heating costs and taxes. Each cost category is weighted according to its proportion of the overall costs of running a multi-residential property. The costs in these categories are averaged over a three-year period.
Landlords can apply to the Ontario Rental Housing Tribunal for an increase above the guideline if their annual costs for heat, hydro or municipal taxes have increased more than the guideline allowed for, or if they have done major capital work.
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Contact:
Sonya Rolfe
Market Housing Branch
(416) 585-7398