What's covered, what's not, and how the annual cap actually works.
Ontario's Residential Tenancies Act caps how much a landlord can raise the rent on an existing tenant from one year to the next. The cap is called the annual rent increase guideline, and it's set by the provincial government every year.
Rent control applies to most residential units in Ontario that were first occupied as a residence before November 15, 2018.
Units that were first occupied for residential use on or after November 15, 2018 are exempt. The landlord of an exempt unit can raise the rent by any amount at the end of a fixed-term lease.
A landlord can apply to the Landlord and Tenant Board (LTB) for a rent increase above the annual guideline. AGIs are usually granted for:
AGIs require LTB approval and tenants have the right to dispute the application.
This guide is informational, not legal advice. For your specific situation, talk to a paralegal, a community legal clinic, or the LTB directly. I'm a registered real estate sales representative, not a lawyer.
If your landlord just raised your rent and you're not sure if it's legal, send me the notice. I'll tell you in 10 minutes whether it's valid or worth disputing.