The Ontario government has set the 2023 rent increase guideline at 2.5 per cent, a rate much lower than inflation. This represents the maximum amount a landlord can increase rent during the year for most tenants without the approval of the Landlord and Tenant Board.

The guideline is based on Ontario’s Consumer Price Index, a measure of inflation calculated monthly by Statistics Canada using data that reflects economic conditions over the past year. Due to recent inflation, a 2023 guideline of 5.3 per cent might have been expected by many; however the government said it set the guideline lower to protect vulnerable tenants.

“As Ontario families face the rising cost of living, our government is providing stability and predictability to the vast majority of tenants by capping the rent increase guideline below inflation at 2.5 per cent,” said Steve Clark, Minister of Municipal Affairs and Housing. “We continue to look for ways to make homes more attainable for hardworking Ontarians, while making it easier to build more houses and rental units to address the ongoing supply crisis.”

The guideline applies to the vast majority of rental households (approximately 1.4 million) covered by the Residential Tenancies Act. It does not apply to rental units occupied for the first time after November 15, 2018, vacant residential units, community housing, long-term care homes or commercial properties.

Rent increases are not automatic or mandatory. Landlords may only raise rent if they gave tenants at least 90 days’ written notice using the correct form. In addition, at least 12 months must have passed since the first day of the tenancy or the last rent increase.

For more information, click here.