Government of Ontario allows Highest Rent Increase since 2013

Posted July 24, 2019 07:00

The Government of Ontario has increased the limit for the annual rent increase, allowing a higher increase compared to last year. The owners in Toronto and the rest of the province will be able to increase their incomes by a maximum of 2.2% in 2020. This means that if your income is $ 1,000 per month, you can increase to $ 1,022 per month, from January 1 through December 31, until the next year's limits are published. Last year, the maximum rent increase was 1.8% and has remained below 2% since 2017. This year's increase is the highest since 2013. The rent increase can be applied to most private residential rental units, which include vacant residential units, social housing, nursing homes and commercial properties. The tenant must receive written notice of an increase in rent by the owner at least 90 days before it becomes effective. These guidelines do not apply to new buildings, existing buildings with new additions or to most residential basement apartments that moved since November 15, 2018. This rent increase is based on the Ontario Consumer Price Index, a tool of Statistics Canada that measures inflation and economic conditions. The data collected from June to May determine the price index for the following year. Looking for a property to rent? Or thinking about investing in real estate? Whatever your choice, contact me and I will offer you the best advice!