A Complete Guide On Rent Increase in Ontario For 2023

by | Oct 25, 2022

Do you currently rent or own property in Mississauga? If so, you might be curious about the most recent changes in the rent increase in Ontario. You may be aware that the Ontario government has announced higher household rents. Both residents and property owners must know about the rent increases. Because the rent increase guideline is subject to change each year.

The best course of action in a circumstance like this is always to seek counsel from a real estate agent or expert. Yogi & Associates has all the information on the rent increase in Ontario for 2023. 

You must be thinking about the rent that the landlord can charge. As a result, worrying about what the landlord can demand is normal. This article will give you guidance about rent increases. Let’s give it a read! 

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1. What is Rent Increase Guideline?

It represents the highest rent that a landlord may demand from a tenant. Additionally, Mississauga rent costs fluctuate annually; the rate for 2023 is 2.5 percent. Moreover, the landlord cannot charge tenants more than the fixed rent.

2. What are the Rules for Rent Increase in Ontario?

For guidance on rent increases, there are specific rules. The cost of living can rise after a year in one of two ways:

  •  The last rent increase.
  •  The date you hold possession as a tenant.

For instance: If the landlord fails to provide you with the required notice, you have a year to discuss the matter with the Landlord and Tenant Board. 

3. Residential Requirements For Rent Increase in Ontario

Most privately owned residential rental units will see a rent increase in Ontario. Residential Tenancies Act of 2006 applies to people living in the following properties:

  • Apartments
  • Condos
  • Care homes
  • Land lease communities

But the rule does not apply to certain types of rental housing where renters live and to rental units occupied for the first time after November 15, 2018.

Point to Ponder!

“The 2.5 percent is higher than last year, which was 1.2 percent. It is good to see that this initiative will help the landlords. The Ontario government is trying its best to assist the renters… this will keep that balance between landlords and tenants.” (The President of the Sarnia-Lambton Real Estate Board, Rob Longo)

4. How Do We Calculate the Annual Rent Increase?

Using the Ontario Consumer Price Index, you can calculate the rental increase. Also, Statistics Canada uses this price index to track inflation and the state of the economy for a year. Furthermore, we included a calculating example for a rent increase:

Your monthly rent is $1,000 when you sign a lease on June 1, 2022. The guideline for 2023 is 2.5%. Thus:

A rise of 2.5% = $25.00

$1,000 + $25.00 = $1,025.00

As a result, the landlord can raise the monthly rent from June 1, 2023, to $1,025.00. Also, the property owner must deliver the written notice at least 90 days before the deadline.

“We need a premier focused on making housing affordable, not a principle taking more money away from people.” –Jessica Bell

If you want to know about the recent changes in the gas tax cut, please visit our blog by clicking here. A 2022 Quick Guide On The Impacts Of Gas Tax Cut in Ontario.

5. Previous Rates of Rent Increase in Ontario

See the table below to learn more about the rising rates of housing costs over the past few years:

Year Guideline (%)
2023 2.5
2022 1.2
2021 0
2020 2.2
2019 1.8

The Ontario Government passed a rule to freeze rent rates at 2020 levels for 2021. It means that most rental units did not increase rental rates in 2021. And, therefore, secured by the Residential Tenancies Act of 2006.

The Bottom Line!

The landlord and tenant in Mississauga should know the laws governing rent hikes. As well, the renters or tenants should be aware of their rights to prevent paying excessive rent. Additionally, a landlord should keep the rent within the predetermined limit. 

We hope you have some new information about the most recent trends in Ontario’s rent increase. If you are confused, contact Yogi & Associates. Our administrator will provide you with thorough guidance. Moreover, you can get our bookkeeping services in Mississauga for managing your books and data collection.

Get in Touch With Yogi & Associates!