Provincial Government Sets 2006 Rent Increase Guideline

The Ministry of Municipal Affairs and Housing has released the province's rent increase guideline for 2006. The 2006 guideline will be 2.1 per cent. For previous years' increase guidelines, please see the table below.

The new rent increase guideline becomes effective January 1, 2006 and establishes the maximum amount that a landlord can increase a tenant's rent without making an application to the Ontario Rental Housing Tribunal.

This guideline does not apply when renting a vacant unit. Under the Tenant Protection Act, 1997, when a unit becomes vacant, a landlord is free to charge whatever rent he/she chooses. Once the unit is rented, however, the guideline increase applies for subsequent increases to that tenant.

In the past, the rent increase guideline included a base increase of two per cent, plus an amount for increases to landlord operating costs. In 2005, the provincial government announced that the increase guideline would include only an amount for operating cost increases, while proposals to reform rent control are considered. This has been continued for 2006.

The guideline applies to most private residential rental accomodation covered by the Tenant Protection Act, 1997. The guideline does not apply to residential dwellings first occupied (by any owner or tenant) on or after November 1, 1991.

For more information on rent increases, please contact the Ontario Rental Housing Tribunal at 416-645-8080 or 1-888-332-3234.

Historical Rent Increase Guidelines

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%
1996 2.8%
1995 2.9%
1994 3.2%
1993 4.9%
1992 6.0%
1991 5.4%
1990 4.6%

Additional Information:

Ontario Housing Tribunal 1-888-332-3234.
Ministry of Municipal Affairs and Housing (416) 585-7041.

For more information, call CMHC at (416) 221-2642.

Rent

How is the rent on a rental unit decided?

When a rental unit is vacant, a landlord and the person looking to rent the unit negotiate a rent and decide what services (such as hydro or parking) are included. Once the tenancy begins, the rules about rent and the other rules in the Residential Tenancies Act (the Act) apply. For more information on the rent rules under the Act, see the Board’s brochure on A Guide to the Residential Tenancies Act.

How often can the rent be increased?

The landlord cannot increase the rent for a new tenant until 12 months after the tenancy started. Then, the landlord is allowed to increase the rent once every 12 months.

How much can a landlord legally increase the rent this year?

In most cases, a landlord can only increase a tenant’s rent by the guideline set each year by the Ministry of Municipal Affairs and Housing. Information about this year’s guideline can be found in Brochures by Topic.

Does a landlord have to notify a tenant of a rent increase?

Yes. In order for a landlord to increase the rent, the landlord must give a written notice of rent increase to the tenant at least 90 days before the day the rent increase is to start. The notice must tell the tenant how much the new rent will be and when to begin paying the new rent. If the tenant thinks that the new rent is too high and they do not want to pay it, this allows the tenant enough time to give the landlord proper notice of termination and move out before the rent increase begins.

Does a landlord have to give rent receipts?

Yes, if a tenant asks for them. The Act requires a landlord to provide rent receipts, free of charge, to a tenant when the tenant asks for them. A tenant can ask for a receipt for any payment or deposit the tenant gives to the landlord, including a payment for rent arrears. It is an offence for a landlord to fail to provide a rent receipt when one is requested by a tenant.

This rule also applies to a former tenant – The landlord must provide a former tenant with receipts if they request it, as long as the former tenant makes their request within one year of the date they moved out.

What information must be provided in a receipt?

A rent receipt must include at least the following information:

the address of the rental unit;
the name of the tenant(s) to whom the receipt applies;
the amount and date for each payment received for any rent, rent deposit, arrears of rent, or any other amount paid to the landlord and shall set out what the payment was for;
the name of the landlord; and
the signature of the landlord or the landlord’s agent.

When is the rent considered late?

Rent is considered late if it is not paid by the day that it is due. For example, if the rent is due on the 1st of the month and it is not paid by on that day, it is late.

If a tenant is late with their rent, what can the landlord do?

If a tenant does not pay rent on the date that it is due, the landlord can give the tenant a Notice to End a Tenancy Early for Non-payment of Rent (Form N4). This notice gives a tenant who pays rent monthly 14 days to pay the rent due or to move out. If the rent is not paid, and the tenant does not move, the landlord can make an application to the Board for an order:

requiring the tenant to pay the rent that is owing, and
evicting the tenant if they do not make the entire payment by a specified deadline

See the Board’s brochure on If a Tenant Does Not Pay Rent for more information.

If a tenant is often late with the rent, the landlord may give a Notice to Terminate a Tenancy at the End of Term (Form N8) for persistently paying rent late. Daily or weekly tenants must be given 28 days notice and in all other cases, the tenant must be given 60 days notice. In this case, the landlord can apply to the Board for an order evicting the tenant right after giving the tenant the notice.