On the Radar from CLEO
CLEO On The Radar
December 2022
Coming in 2023: New EI rates and rent increase guideline
As 2023 approaches, it's time to look ahead at 2 changes that happen every January:
  • the annual increase to Employment Insurance (EI) rates, and
  • the annual rent increase guideline.
EI rates for 2023
The maximum amount workers can get on EI goes up on January 1, 2023. These amounts are shown in the table below.
EI Benefit Type 2022 Maximum Amount 2023 Maximum Amount
Regular, sickness, caregiving, maternity, and standard parental benefits $638 a week $650 a week
Extended parental benefits $383 a week $390 a week (not yet confirmed)
People can apply for EI online or at a Service Canada office. It usually takes more than 4 weeks for Service Canada to review an application and start paying benefits.
Rent increase guideline for 2023
For most tenants covered by the Residential Tenancies Act (RTA), there's a maximum amount the landlord can increase the rent by each year. This is called the rent increase guideline and it's set each year by the Ontario government. In 2023, it's 2.5%.
For tenants protected by the RTA, a landlord must wait 12 months after the tenant moves in before they can raise the rent. And they can only raise the rent once every 12 months.
Notice in writing
A landlord must give the tenant written notice of the rent increase at least 90 days before the day the rent goes up.
This means that tenants whose rents are going up on January 1, 2023, should have received their written notice no later than October 3, 2022.
Landlords should use one of the Landlord and Tenant Board (LTB) rent increase forms. The most used form is the Form N1.
If landlords don't use an LTB form, their notice must have all of the information that's on that form. For example, it must show the rent increase as a percentage. And it must also say if the increase is within the guideline for the year.
When the rent increase guideline does not apply
For some tenants covered by the RTA, a landlord can increase the rent by any amount, unless the rental agreement says something else.
This affects tenants who live in a building, mobile home park, or new addition that no one lived in on or before November 15, 2018.
It also affects tenants who live in a self-contained apartment created after November 15, 2018, if the following 2 conditions are met.
First, the house that the apartment is in had no more than 2 units before November 15, 2018.
And second, either:
  • the owner lived in another part of the house when the apartment was created, or
  • the new apartment was created in an unfinished space, like a basement or attic.
Tenants not covered by the RTA
Some tenants are not protected by the RTA. For example, tenants who must share a kitchen or bathroom with their landlord, or the landlord's spouse, parent, or child.
Unless their rental agreement includes limits on rent increases, the landlord can increase their rent by any amount.
Special rules
Sometimes, landlords can increase the rent by an amount above the guideline. This can happen if:
A tenant can agree to an increase above the guideline in exchange for something extra from the landlord. This could be an improvement to the rental unit, like adding a dishwasher or replacing carpets with hardwood flooring. Or it could be for something that appears on a government list of approved reasons to increase the rent at any time, like a new parking space or storage locker.
And a landlord can apply to the LTB for permission to increase the rent by more than the guideline if they had certain extra costs. These are:
  • the cost of security services
  • unusually high increases in property taxes
  • certain kinds of capital expenses, like major repairs expected to last at least 5 years.
In both cases, there's still a limit on how much the landlord can increase the rent. For example, for rent increases related to security services, the maximum increase is the guideline amount plus 3% each year for 3 years. In 2023, that means a maximum rent increase of 5.5%.
Getting help
The rules about how much and when a tenant's rent can increase are complicated. It's a good idea for tenants to get legal help.
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Related resources
Rules for rent increase
Government of Ontario
Notice of Rent Increase – N1
Landlord and Tenant Board
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