For Ontario only – 2016 Rent Increase Guideline

#Orig2015If you reside in Ontario and you are about to enter into a 1 year lease during January 1, 2016 and December 31, 2016 or you intend to remain as a month to month tenant with your landlord during this same period; there is a chance this rate increase is applicable to you.

The 2016 Rent Increase Guideline has been set at 2.0 per cent and it applies to 2 categories of individuals or families.

1. Category 1 – Individuals or Families who intend to rent or enter into a 1 year lease during January 1, 2016 and December 1, 2016.

2. Category 2 – Individuals or Families who have recently completed their first 12 months and wish to remain as month to month tenants in the current abode/rental for anytime during period January 1, 2016 to December 31, 2016.

Regardless of build form ( low rise, high rise, single family detached, multi family).

  • The rent increase guideline applies to most “not all ” private and residential rental accommodations covered by the Residential Tenancies Act, 2006.
  • The guideline is not applicable to: vacant residential units, residential units first occupied on or after November 1, 1991, social housing units, nursing homes or commercial property.

In order to have a rent increase effective January 1, 2016, you must provide your tenants/residents with the required notice, no later than 90 days before your desired effective date.

Keep in mind, both landlords and tenants must remember the 90 days notice is counted based on the first day of the rental period, which often is the 1st day following the last day of each month.

For example : If a tenant’s notice commences on any day between the 2nd or the 30th or 31st day of each month, the 90 days notice clock begins counting only from the 1st day of each month ( weekends and holidays included).  So, you can send your tenant the notice on the 10th, the 17th or any random date but ensure you calculate the 90 days based on a 1st of the month basis.

The 12 month rule according to the RTA Act states :

119. (1) A landlord who is lawfully entitled to increase the rent charged to a tenant for a rental unit may do so only if at least 12 months have elapsed,

(a) since the day of the last rent increase for that tenant in that rental unit, if there has been a previous increase; or

(b) since the day the rental unit was first rented to that tenant, if clause (a) does not apply.  2006, c. 17, s. 119 (1).

As always, the rising costs of construction or maintenance of old, new or existing buildings is not lost on our housing policy makers so feel free to explore the rent increase above guideline provision.

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