December 12th, 2018
After one year has elapsed on a tenant’s lease, you’re able to increase their rent based on a predetermined rate.
Every year, the rate at which landlords can increase their rents for existing tenants gets readjusted based on inflation. This year, landlords have to limit their rental increases to 1.8% of the monthly rent, unless they want to apply to the Landlord and Tenant Board for a higher rent increase.
The increase guidelines don’t apply to:
For the above units, there is no limit on rent increases for any year.
By using the 1.8% figure, once your tenant has lived in your unit for 12 months, you’re able to give them notice of the rent increase. You may then increase the rent again, every 12 months, following the new guideline as they become available to the public.
Your tenant must receive notice of the increase 90 days before it is set to go into effect.
For example, someone paying $1,000 per month for 12 months can have their rent readjusted by 1.8%, making their new rent $1,018 at maximum.
If you are holding a rental deposit for the tenant, the landlord has to pay the tenant interest on this holding every year. The interest rate will be the same as the rental increase guideline percentage.