ONTARIO’S 2022 RENT INCREASE GUIDELINE
Based on the Ontario Consumer Price Index (CPI), the guideline on rent increases for 2022 in Ontario is 1.2 per cent. The CPI is a measure of inflation calculated monthly by Statistics Canada using data that reflects economic conditions over the past year.
The guideline applies to most residential rental accommodations covered by the Residential Tenancies Act. It does not apply to rental units in buildings occupied for the first time after November 15, 2018, social housing units, long-term care homes or commercial property.
The rent increase guideline is the maximum most landlords can raise a tenant’s rent without the approval of the Landlord and Tenant Board (LTB). It is applicable to most rent increases between January 1 and December 31, 2022.
Ontario has frozen rent for the vast majority of tenants in 2021. To support renters, the 2021 rent increase guideline was set at 0 per cent.
Rent increases are not automatic or mandatory. Landlords may only raise rent if they gave tenants at least 90 days written notice using the correct form. In most cases, the rent increase cannot be more than the rent increase guideline. In addition, at least 12 months must have passed since the first day of the tenancy or the last rent increase. If a tenant believes they have received an improper rent increase, they may dispute it at the LTB within 12 months.
- Last year, Ontario passed legislation to freeze rent at the 2020 level for the vast majority of rented units covered under the Residential Tenancies Act to help give Ontarians financial relief as they deal with the challenges of the COVID-19 pandemic.
- The rent increase freeze will end on December 31, 2021. Landlords can send a notice to tenants before the freeze is lifted for a rent increase that takes effect in 2022.
- Landlords can apply to the Landlord and Tenant Board for above-guideline rent increases, under certain circumstances, such as after major capital work has been paid for and finished.
- In response to COVID-19, Ontario has invested $765 million through the Social Services Relief Fund to fund rent banks, utility banks and emergency loans for those most in need.
- Tenants who may need help to pay their rent are encouraged to contact their local service manager to see what housing supports are available in their community.