This Rent Increase Guide is a free tool for rental property owners and renters to clarify Toronto rent increase guidelines.
This is not a legal document. If you require more assistance regarding the rent increase guidelines, schedule a call with our team.
Most residential rental properties in Toronto are eligible to raise rent one year after either the last increase or the date the tenancy began. That is one year after your tenant started renting the property or one year after your last increase.
The rent increase guideline for 2022 is 1.2% and the rent increase guideline for 2023 is 2.5%.
The rent guideline is a percentage, based on the current rent, that calculates the maximum amount a landlord can raise rent. For example, if you are charging your tenant $1,000 per month, the current guideline would allow you to raise rent by $12 ($1,000 x 1.2%), making your new rent $1,012. This guideline applies to most properties.
In the following Rent Increase Calculator, the rent is set to $2,500 and the rate is set to 2.5% but displayed as the integer 0.025. You can update the rent and calculate your custom rent increase. If you are calculating a rent increase for 2022, change the rent increase integer to 0.025.
Rent Increase:
Updated Rent Rate:
A notice of rent increase must be provided to your tenant 90 days before the increase is implemented.
The form can be found at Tribunals Ontario – Landlord & Tenant Board site > Forms > Forms for Landlords > Download – N1: Notice of Rent Increase or by clicking the following shortcut:
Rent can only be increased as early as one year after the start of a lease or one year after the last increase in most cases.
A notice of rent increase must be provided to the tenant 90 days prior to the rent increase taking affect. For example, if your tenant started their lease on Sept 1, 2021, you can increase their rent by 1.2% as of Sept 1, 2022 but you must make them aware of the increase by June 1, 2022.
There are exceptions limits and guidelines defined above.
“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 are exempt from rent control.”
To learn more about rent guidelines and renting out your property in Toronto, contact our team today.
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