Ontario Rental Increases On The Way

Ontario Rental Increases On The Way

The rental freeze is coming to an end for Ontario residents and Landlords can now begin sending out notices for as early as January 1, 2022. 

Normally and in the past, you would be subject to a rental increase:

Depending on when you moved in the renewal date of your lease or rental increase was done 12 months after move-in date and then on the yearly anniversary of that date for as long as you lived there.

In the year of 2020, you did not receive an increase due to legislation.  It also means that when your anniversary date rolled around you did not receive a notice or an increase for your rent. 

What does the freeze mean for you?

As of January 1, 2022, your rent could be increased.

·         A new tenant [ie: move in between Jan-Dec 2020] would only be obligated for a rental increase based on the 12-month anniversary of their tenancy. 

·         An existing tenant [ie: moved in between Jan-Dec 2019] will receive a 90-day notice and will have to pay the rental increase as early as January 1.  Again the 12-month rule applies.

·         An existing tenant [ie: moved in prior Jan 2019] will receive a 90-day notice and will have to pay the rental increase as early as January 1.

It is important to note that:

Should your Landlord choose to increase your rent for January 1, 2022 even though your anniversary date may be another month in the year, they are within their right provided you have been a resident for a minimum of 12 months.

·         Make sure that your Landlord uses a legal form N1: Notice of Rent Increase.

·         Rent increase for 2022 is limited to 1.2%

·         Landlords can apply for above guideline increases for certain circumstances.

·         Verify the dates are correct and that you are not paying ahead of when is legally binding.

·         If you find a discrepancy talk to your Landlord and advise them the notice is void as it is incorrect.

·         If your Landlord does not comply talk to the Landlord and Tenant Board immediately.

If you have a great Landlord, they might forego the cash grab at the start of the year and wait to issue the notice till 90 days before your original term lease or renewal date to hit you up with an increase.