Landlords of residential units will be able to raise their tenants’ rent by 2.5% again in 2024.
The Ontario government approved the increase in June. Tenants of ‘rent-controlled’ units are subject to a 2.5% increase this year, too.
While the 2024-approved rent increase is on the high-end, it is well below the current 5.9% average inflation rate.
Two-and-a-half per cent is the most a landlord can raise rent for current tenants next year, without obtaining approval from the Landlord and Tenant Board, unless the residential unit was occupied for the first time after Nov. 15, 2018. In this case, a landlord can raise rent above the guideline.
Should a tenant move out, the landlord can choose to charge the next resident rent above the allowable guideline for 2024. The starting point for all rents, and subsequent rent increases, is reset when a unit turns over to a new tenant.