Renters in Ontario won’t see their monthly rent payments soar as high as inflation. The government has capped rent increases at 2.5 per cent for 2023.
The rent increase guideline is the maximum amount a landlord can increase rent without the approval of the Landlord and Tenant Board.
The guideline is based on the Ontario Consumer Price Index and because inflation has risen so sharply it would mean a possible increase would be 5.3 per cent.
The Ford government says they have capped it much lower to provide stability for Ontario renters as they face rising cost of living expenses. “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 approximately 1.4 million rental households 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.