How do I dispute a rent increase in Ontario?
If you are a tenant in Ontario, you may have questions about your rights and responsibilities regarding rent increases. In this blog post, we will explain the rules for rent increases, the rent increase guideline, and how to dispute a rent increase if you think it is improper or unlawful.
Rules for rent increase
In most cases, the rent for a residential unit can be increased if at least 12 months have passed since the last rent increase or the date the tenancy began. The landlord must give the tenant written notice of a rent increase in the proper form at least 90 days before it takes effect. The proper forms for this notice are available from the Landlord and Tenant Board (LTB), an independent tribunal that resolves residential tenancy disputes in Ontario.
If the landlord does not provide the proper notice, or the tenant believes that the rent has been raised by an improper amount, they can dispute it at the LTB within 12 months after the amount was first charged.
Rent increase guideline
The rent increase guideline is the maximum amount that a landlord can increase most tenants’ rent during a year without the approval of the LTB. The guideline is calculated using the Ontario Consumer Price Index, a Statistics Canada tool that measures inflation and economic conditions over a year. The guideline is capped at 2.5% to prevent significant rent increases.
The guideline for 2024 is 2.5%. This means that if your monthly rent is $1,000, your landlord can increase it by up to $25 ($1,000 x 0.025 = $25) without applying to the LTB.
The guideline applies to most private residential rental units covered by the Residential Tenancies Act, 2006 (RTA). This includes rented houses, apartments, basement apartments, condos, care homes, mobile homes, and land lease communities.
The guideline does not apply to:
- new buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018
- rental units upon turnover of a tenancy (the landlord and new tenant agree on the rent amount)
- community housing units
- long-term care homes
- commercial properties
Exceptions
In some cases, landlords can apply to the LTB for approval to raise the rent by more than the rent increase guideline. This may be because they have incurred increased costs for taxes, utilities, security services, or capital expenditures (such as major repairs or renovations).
The landlord must file an application with the LTB and serve copies to all affected tenants. The tenants have an opportunity to review the application and submit their comments or objections to the LTB. The LTB will then schedule a hearing to decide whether to grant or deny the application.
In care homes (such as retirement homes), the rent increase guideline only applies to the rent portion of the bill but does not apply to the cost of services like nursing, food or cleaning.
How to dispute a rent increase
If you receive a notice of rent increase that you think is improper or unlawful, you can take the following steps:
- Talk to your landlord and try to resolve the issue informally. You can explain why you think the rent increase is incorrect or unfair and ask them to withdraw or modify it.
- If you cannot reach an agreement with your landlord, you can file an application with the LTB to challenge the rent increase. You must do this within 12 months after the amount was first charged. You can use Form T1: Tenant Application for a Rent Reduction or Form A1: Application about a Rent Increase depending on your situation. You can find these forms on the LTB website or at any LTB office.
- You will have to pay a filing fee of $50 or request a fee waiver if you have a low income. You will also have to serve a copy of your application to your landlord and provide proof of service to the LTB.
- The LTB will process your application and send you a Notice of Hearing that tells you when and where your hearing will take place. The hearing may be oral or written depending on the circumstances of your case.
- At the hearing, you will have a chance to present your evidence and arguments to a Member of the LTB who will make a decision based on the facts and the law. The Member may order your landlord to reduce your rent, refund any excess amount you paid, or dismiss your application.
- If you disagree with the decision of the LTB, you can file an appeal with the Divisional Court within 30 days after receiving the order. You will need legal advice and representation to do this.
Conclusion
Rent increases are regulated by law in Ontario and tenants have rights and options to dispute them if they are improper or unlawful. If you have any questions or concerns about your rent increase, you can contact the LTB or seek legal assistance from a community legal clinic or a lawyer.