following year.
The guideline is the maximum amount that most landlords can increase a tenant’s rent during the year without making an application to the Landlord and Tenant Board. It is based on the Ontario Consumer Price Index (CPI), which is a measure of inflation calculated monthly by Statistics Canada, charting the change in the price ща all goods and services in the provincial economy.
The rate of allowable rent increases for 2012 will be 3.1 per cent and applies to rent increases between January 1 and December 31, 2012. This is up from last year’s guideline of 0.7 per cent. Check this link if you are interested in more details of how it was calculated, as well as historical data
In most cases, the rent for a unit can be increased if at least 12 months have passed since the 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.
Note that the guideline does not apply to residential dwellings first occupied on or after November 1, 1991. So if you have one of these new condos, the RIG does not limit the amount by which a you can increase the rents.
However there is a new proposed amendment to the Residential Tenancies Act if passed, it will set annual Rent Increase Guideline between one and 2.5 per cent beginning in 2013! According to the Ontario government “tenants would benefit from greater certainty that would ensure affordable and stable rents so they have safe and affordable housing.”
For landlord this new rule means that unless someone moves out in the years when inflation rate is over 2.5% (and they happen more often than not), you have no way to bring rent in accordance to prices of everything else on the market. On top of that, no sublets (aka some finds you a tenant and help avoid vacancy) would be considered by landlords.
I suggest we all keep an eye on this proposed amendment
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