The "New" Rent Control Guideline
Reading Time: 4 minutes
Ontario announced the cap on rent increases for 2025 will be 2.5%. This is the same as 2024, and 2023.
In Ontario, we have rent control laws that limit how much a landlord can increase rent.
Properties built before November 15, 2018, are rent-controlled. This means rent increases are limited by a guideline set by the province.
Properties built after November 15, 2018, are not rent-controlled, so landlords can increase the rent by any amount with proper notice.
Each year, Ontario releases their Rent Increase Guideline. This Guideline tells landlords the maximum amount (in %) that they can increase rent.
Ontario just announced that the 2025 Guideline will be 2.5% - the same as 2024... and 2023. So it's new, but not really - hence the quotation marks.
Now, these rent increases are not automatic or required.
To raise the rent, landlords must give tenants at least 90 days' written notice using the proper form AND a year must have passed since the tenant moved in or since the last rent increase.
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Now that we understand the Rent Increase Guideline, let's compare it to previous years and other jurisdictions.
These are the Rent Increase Guidelines for the past 25 years in Ontario:
![Ontario Rent Control Guidelines from 2000-2025](https://www.socciomarandola.com/content/images/2024/07/WHITE-Chart.png)
Takeaways:
- The Average Guideline for the last 25 years is just over 2%
- The Guideline has only been higher than 3% twice since 2000
- This is the first time ever (including back to 1991) that the Rent Increase Guideline has stayed the same for three (3) consecutive years
Now let's compare Ontario's Rent Increase Guidelines to other Provinces.
There are four (4) provinces in Canada that use a maximum annual rent increase: Ontario, British Columbia, Manitoba, and Prince Edward Island.
Ontario
2024: 2.5%
2023: 2.5%
2022: 1.2%
2021: 0%
2020: 2.2%
British Columbia
2024: 3.5%
2023: 2%
2022: 1.5%
2021: 0%
2020: 2.6%
Manitoba
2024: 3%
2023: 0%
2022: 0%
2021: 1.6%
2020: 2.4%
Prince Edward Island
2024: 3%
2023: 0%
2022: 1%
2021: 1%
2020: 1.3%
Takeaways:
- Ontario has the lowest Rental Increase Guideline in Canada
- Each province has had a rent freeze (0%) at least once since 2020
- Ontario and BC are the most similar in their Rent Increase Guidelines, though BC took a more aggressive response to inflation last year
By having a strong understanding of the Rent Increase Guidelines, along with knowing its history and comparative qualities, you have the ability to educate your landlord clients and enhance your credibility and trustworthiness.
Zachary Soccio-Marandola
Real Estate Lawyer
Direct: (647) 797-6881
Email: zachary@socciomarandola.com
Website: socciomarandola.com
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