Recently, Minister of Municipal Affairs and Housing Kathleen Wynne announced that the passage of the Residential Tenancies Amendment Act will cap the maximum amount most landlords can increase a sitting tenant’s rent during the year at 2.5 per cent.
Right now, one million tenant households in Ontario are covered by the annual Rent Increase
Guideline, which applies to more private residential rental accommodations covered by the Residential Tenancies Act, 2006. The guideline is the maximum amount most landlords can increase a sitting tenant's rent during the year without making an application to the Landlord and Tenant Board.
Tenants will now benefit from more predictable and stable rents so they have safe and affordable housing. For landlords, this will ensure a fair return so they can properly maintain and repair rental properties.
The annual Rent Increase Guideline is a calculation based on the Ontario Consumer Price Index (CPI), which is calculated by Statistics Canada. CPI is a measure of inflation, or the rate of price change for goods and services bought by consumers.
Capping the Rent Increase Guideline is part of the McGuinty government’s plan to provide affordable housing for Ontario families. To learn more about Ontario’s Long-Term Affordable Housing Strategy, please visit www.mah.gov.on.ca or contact me at my Community Office at 613-722-6414.
Together, we are building a better Ontario!