Arsh Syed, Real Estate Agent & Founder at Real Estate in Toronto

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How much can a landlord raise the rent in Toronto!

How much can a landlord raise the rent in Toronto!

How much can a landlord raise the rent in Toronto!

Finding out whether or not the rent increase guideline will protect you is essential before signing a lease. Most rental units have protections in place that limit the annual rent increase that a landlord may impose.

If you are renting a subsidised property, also known as Rent Geared to Income (RGI), you are not subject to the rule. Rent increases in RGI housing are subject to extra regulations, such as a longer notice period. In most cases, your monthly rent will be proportional to your family’s annual income.

There are several exceptions for more modern rental properties. In the event that your unit is not one of the following, you are not subject to the standard:

In a building, mobile home park, or land lease community that was first occupied for residential purposes after November 15, 2018.

On or after November 15, 2018, in a residential addition to an existing structure, mobile home park, or land lease community, or
a separate dwelling that was added to an existing single-family home after November 15, 2018 and which met certain additional criteria (such as the fact that the home had never before housed more than two families).

If you have a kitchen or bathroom in the same building as the landlord or their immediate family, you are not protected by the standard. Your landlord has the right to increase your rent at any time, regardless of the terms of your lease.

The government usually makes the announcement around the end of August for the next calendar year. The recommended sum in 2022 is 1.2 percent, while in 2023 it rises to 2.5 percent.

Reduced rents in 2021:
In 2021, the target was 0%, thus that was the rule of thumb. For the duration of the year 2021, from January 1st to the last day of 2021, your landlord was prohibited from increasing your rent.

A rent increase notification from your landlord in 2021 was permissible, but the increase could not take effect until January 1, 2022.

Even though newly constructed dwellings are not typically subject to the rent freeze, they were included in this particular instance. Therefore, if you moved into your building or into your apartment after November 15, 2018, the landlord cannot increase your rent in 2021.

Downtown Toronto rates have been rising, but not all landlords are benefiting.

Maximum legal rent increases in Ontario for 2022 are capped at 1.2%.
The government has frozen rental hikes until 2020 to aid Ontarians in dealing with the difficulties of the COVID-19 epidemic, and this is the result after December 21, 2021, the freeze was no longer in effect and was not extended.

With possible future rent hikes, Ontarians often have concerns about the extent to which their rent may grow.

Does the rent always go up?
Not necessarily, rent hikes are not implemented often. In order to increase a tenant’s rent lawfully, a landlord must provide the renter written notice using a N1 form.

To what extent am I entitled to advance notification from my landlord?
A tenant must be given 90 days’ notice through the N1 form before the rent increase takes effect.

What is the maximum increase my landlord may make to my rent?
Landlords are only allowed to raise rent by 1.2% without receiving tenant approval for an increase that exceeds the standard rise.

When I move in, how long do I have before my landlord may increase the rent?
There is often a 12-month waiting period between the first rent increase and the first anniversary of the tenant’s occupancy.

Can there be any rent hikes over the maximum allowed?
If a landlord wants to raise rent by more than 1.2%, they may go to the Landlord-Tenant Board (LTB) for approval. Before any tenant is notified, the LTB must provide its consent to the move.
Furthermore, social dwelling units, long-term care facilities, and commercial property that were not previously inhabited are exempt from the 1.2% rule.

I was wondering whether my landlord may ask for a rent increase that was more than the norm?
In most circumstances, the rent increase cannot exceed the rent increase guideline established by the Ministry of Municipal Affairs and Housing.

Landlords may request a rent increase beyond the guideline if they have incurred significant capital expenses (e.g., renovations, repairs, replacements of the unit) or if they have experienced operating costs related to security services.

Here you may find a comprehensive list of the scenarios in which a landlord could seek a rent increase that goes above what is allowed by law.

To what extent am I obligated to accept a rent increase?
Tenants are not obligated to accept a rent increase if the landlord gives them 90 days’ written notice and the increase is 1.2% or less.

Tenants have a year from the date of the rent increase to register a complaint with the LTB if the landlord attempts to increase the rent by more than 1.2% without first submitting an above-guideline rental increase application or providing the right rental increase form.

Increases to the maximum allowable under the province of Ontario’s rental guideline are determined annually by the province’s government using the Ontario Consumer Price Index, a technique for measuring inflation and economic circumstances over a 12-month period.

The government claims it uses data collected between June and May to set the standard for the next year.

An intriguing case in point is presented here in which a condo owner decided to sell his property while a renter was still occupying it. There has been interest in purchasing the apartment for personal usage. As part of the sale agreement, the buyer and seller agreed that the seller would provide notice to the tenant and hand over the unit to the buyer once it was unoccupied. Tenant was presented with a N12 notice, which is a notice to vacate the premises when the landlord, buyer, or caretaker needs the property for personal use.

As a result of the sale, the previous tenants left and a new owner moved in. One year later, the seller got an unexpected notification from the landlord and tenants board; the previous tenant had filed a claim against the seller after discovering that the apartment had been leased out to a new tenant and that the buyer had not really moved in. Tenant accused the seller of terminating the lease in bad faith and filed a lawsuit demanding $26,000 in damages to cover his higher rent, relocating costs, and emotional distress.

Buyer said that he had planned for his in-laws to move into the property after the sale, but they didn’t like the place, so he leased it out instead, despite the purchase agreement stating that either buyer or buyer’s immediate family would inhabit the unit following the sale.

The court ruled that the landlord, the seller, had to pay the tenant $26,000 in damages for terminating the lease in bad faith.

Whether you’re selling, buying, or renting, it’s always a good idea to do things the right way. Consult a lawyer for guidance and work with a knowledgeable real estate agent. 

If you have been considering purchasing, selling, or renting your home or have avoided the notion due to a negative experience, let Arsh Syed, Real Estate Agent in Toronto, manage the transaction.

His experience and understanding have been indispensable. He desires for Toronto’s housing crisis to improve. He wants to establish relationships and spread the word about his exceptional service, increasing the likelihood that renters and property owners would place their faith in him.

Arsh wants property owners to know that by hiring him, they are drastically reducing risks, time and saving money.

For further information about his services, please visit or contact (416) 844-2217.

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