When Rent can be Increased?

Renting an apartment in Ontario brings with it numerous privileges and responsibilities. Tenants should know where they stand when it comes to what they are entitled to under the Residential Tenancies Act because it protects renters’ safety and privacy, and also outlines tenant responsibilities. At the Federation of Rental-housing Providers of Ontario (FRPO), we find that consumers often do not understand the parameters of the landlord-rental relationship, especially when it comes to issues around rent and when it can be increased. The rules governing the amount of rent are stipulated in great detail in the Residential Tenancies Act. Landlords can increase rent only in accordance with this document, and in an amount that is not greater than the lawful rent permitted under the appropriate sections. Property managers and property owners, who are members of the Certified Rental Building Program (CRBP) pay strict adherence to these rental-increase regulations. Tenant’s living in CRBP-approved buildings can expect a consistent and straightforward approach with regard to any increases in their rent – no unlawful surprises. For example, there is the “12-month rule” which states that a landlord who is entitled by law to increase rent to a tenant for a rental unit can do so only after at least one year has elapsed. This time frame begins on the day of the last rent increase for that specific tenant in that exact rental unit if there was a previous increase, or since the day the unit was rented to that tenant. In addition, the guideline for each calendar year is determined by the percentage change from year-to-year in the Consumer Price Index for Ontario for the prices of goods and services, as reported monthly by Statistics Canada. These prices are averaged over the 12-month period that ends at the end of May of the previous calendar year, rounded to the first decimal point. Landlords can apply to the Landlord and Tenant Board for permission to raise rents over the established guideline if they are engaging in costly repairs or renovations. If the landlord makes such an application, tenants must receive access to a copy of this form and notice of the hearing date. As a tenant, you must receive at least 90 days’ notice in writing of a rent increase, with the amount of increase mentioned. If you don’t receive this notice, you do not have to pay the increase, but are still responsible for the rent. This gives you some idea of the level of detail covered in the Residential Tenancies Act, and there are many more points to consider. There are some exceptions to all of these guidelines, so it is important to check the Act if you are in doubt about your landlord’s responsibilities – or your own. The Certified Rental Building Program (CRBP) was created by FRPO to help ensure a high quality of life for tenants in certified buildings. The apartments that qualify under the program comply with the conditions stipulated in the Residential Tenancies Act. This is a useful tool in helping you to locate buildings that are safe and professionally run. To learn more about your rights and responsibilities as a tenant, you can find the Residential Tenancies Act at ontariotenants.ca You will also find information at frpo.org and crbprogram.org