Ontario Landlords Allowed Rent Increase of Up to 2.5% in 2024

Most landlords in Ontario will have the opportunity to raise rents by a maximum of 2.5% next year, according to Municipal Affairs and Housing Minister Steve Clark. The rent increase guideline for 2024 has been set at the same rate as this year, and Clark emphasizes that it remains below the average inflation rate of 5.9%.

However, it’s important to note that the 2.5% cap does not apply to rental units that were initially occupied after November 15, 2018. Landlords of such units can still seek approval from the Landlord and Tenant Board for rent increases exceeding 2.5%. Additionally, landlords must provide tenants with a written notice of the rent increase at least 90 days in advance, and they are only permitted to raise the rent once per year.

During the pandemic, the Ontario government had set the rent increase guideline at zero for 2021 as a measure to support tenants. It was then raised to 1.2% for 2022, and the 2.5% limit for 2024 represents a continuation of gradual adjustments in subsequent years.