Illegal Rent Increases in Ontario: Know Your Rights as a Tenant

Rent increases are one of the most common sources of conflict between landlords and tenants in Ontario. Many tenants do not realize that their landlord cannot simply raise the rent by any amount or at any time. The Residential Tenancies Act, 2006 (RTA) sets clear rules about when and how much rent can be increased — and if your landlord has violated these rules, you may be entitled to a refund.

The Rent Increase Guideline

Each year, the Ontario government publishes a rent increase guideline — the maximum percentage by which a landlord can increase rent without applying to the Landlord and Tenant Board for approval. The guideline is based on the Ontario Consumer Price Index and is capped at 2.5 percent. Your landlord cannot increase your rent by more than this amount without an Above Guideline Increase (AGI) approved by the LTB.

Rules Your Landlord Must Follow

To legally increase rent, your landlord must give you at least 90 days written notice using the proper form (N1 for an increase at or below the guideline, or N2 for an above-guideline increase). The rent can only be increased once every 12 months. And the increase must comply with the guideline unless the LTB has approved an above-guideline increase. If your landlord fails to follow any of these rules, the increase may be void.

Exemptions: Units Not Subject to Rent Control

Not all rental units in Ontario are subject to rent control. Units first occupied for residential purposes on or after November 15, 2018 are currently exempt from the rent increase guideline. For these units, landlords can increase rent by any amount, provided they give 90 days notice. However, even for exempt units, the landlord must still follow the proper notice requirements and can only increase rent once every 12 months.

What to Do If Your Rent Was Illegally Increased

If you believe your rent has been illegally increased, you can file an application with the LTB for a rent reduction and a rebate of any overpayment. The LTB can order your landlord to reduce the rent back to the legal amount and pay you back the difference for up to one year. You should gather all notices, receipts, and records of rent payments to support your application.

Get Legal Help

If you are dealing with an illegal rent increase or a dispute with your landlord about rent, Ken Wise & Associates can help. We represent tenants in LTB hearings and appeals to the Divisional Court. Contact us for a consultation.