Do you know how rental increase are calculated in Ontario? Did you know this only applies to some lessee?

A consumer price index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.

From these stats (CPI) collects the data to figure out the increase. These statistical estimate on home, clothing and food etc... They also do a comparison of the previous year to see a increase or a decrease in the market.


For 2016 rental rate increase in Ontario will be 2.0 per cent.

Landlord will need to give their tenant(s)  a proper 90 day written notice of rental increase before the rental increase begins.

For more information please check out the link below.


FYI: A Professional real estate agent will know to help you get the best lease contract in place to protect the tenant(s) and Landlord(s).

A loophole in rental law, courtesy of former Ontario Premier Mike Harris, says that if a rental unit was built or first occupied after November 1, 1991, rent increase rules simply don’t apply. The buildings and their tenants are unprotected by provincial rent control laws.

EXCEPTION FOR NEWER UNITS The guideline does not apply to some "newer" rental units, for example:

  • if no one lived in the building before November 1, 1991, or
  • if the unit was not occupied for any purpose before June 17, 1998.

In these cases, the 12 month and 90 day rules still apply but there is no limit on how much the landlord can raise the rent.

Ontario’s Minister of Municipal Affairs and Housing Linda Jeffrey was unavailable for comment, but said this in a statement:

The post-1991 rent exemption was originally introduced – and has been maintained over time – as an incentive for private landlords to build new rental accommodation. This incentive not only helps to renew the rental housing stock but also creates jobs in the construction sector. As such, any changes to this incentive could have an adverse effect on the rental housing sector, the economy and job creation.


Here are some articles to check out regarding this issue:

For Tenant(s) no protection:

A tenant can choose to just pay the increase then fight it later with the Landlord and Tenant Board. Or, they can refuse to pay and argue their case after the landlord files an application to evict.

But if your building was built after November 1991? You may just be out of luck and out of your apartment.

Landlords forcing the rent up just to force tenants out of units.




Dyan Cheung

Dyan Cheung

CENTURY 21 Percy Fulton Ltd., Brokerage*
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