On the Radar from CLEO
CLEO On The Radar
October 2023
Rent increases in 2024 and a reminder about the rules
As 2024 approaches, tenants will start getting notices from their landlords for an annual rent increase.
The rules about rent increases are complicated. To learn which rules apply to them, tenants need to know if:
  • they're covered by the Residential Tenancies Act (RTA)
  • they have an agreement with their landlord to add extra services or space
  • their landlord has applied for a rent increase above the annual guideline
They also need to know the age of the building or unit that they live in.
The general rule
For tenants protected by the RTA, a landlord must wait 12 months after the tenant moves in before raising the rent. And they can raise the rent only once every 12 months.
A landlord must also give the tenant written notice of the rent increase at least 90 days before the day the rent goes up.
For example, tenants whose rents are going up on January 1, 2024, should have received their written notice no later than October 3, 2023.
Landlords should use one of the Landlord and Tenant Board (LTB) rent increase forms. The most common form is the Form N1: Notice of Rent Increase. If a landlord uses their own notice, it must have all the information that's on the LTB form.
Rent increase guideline
For most tenants covered by the RTA, there's a limit to how much their rent can increase each year. This is called the rent increase guideline or the guideline.
The guideline is set each year by the Ontario government. In 2024, it's 2.5%.
Age of the building or unit
For some tenants covered by the RTA, a landlord can increase the rent by any amount, unless the rental agreement says something different. But a landlord can still only raise the rent once every 12 months.
This affects the following types of housing if no one lived there on or before November 15, 2018:
And it affects tenants who live in a self-contained apartment in a house that was created after November 15, 2018. But this is true only if the house had no more than 2 units before that date and either:
  • the owner lived in another part of the house when the unit was created, or
  • the new apartment was created in what had been an unfinished space, like a basement or attic.
Special rules
There are 2 situations when a landlord can increase the rent by an amount higher than the guideline:
Read more about these special rules by clicking the links above.
Tenants not covered by the RTA
Some tenants are not protected by the RTA at all. For example, this includes tenants who must share a kitchen or bathroom with their landlord, or the landlord's spouse, parent, or child.
Those tenants should check what their rental agreement says about rent increases. If the agreement does not say anything, their landlord can increase the rent by any amount and at any time.
Getting legal help
It's a good idea for tenants to get legal help if:
  • their landlord wants to raise the rent above the rent increase guideline, or
  • they believe their landlord did not give them enough notice about the increase.
Community legal clinics can help tenants who have low incomes.
CLEO logo
Steps to Justice logo
Related resources
Residential rent increases
Government of Ontario
Form N1: Notice of Rent Increase
Landlord and Tenant Board
Is your rent increase legal?
Advocacy Centre for Tenants Ontario (ACTO)
Forward this email
Please forward this information to others who might be interested. Subscribe here for regular updates from CLEO. And if you are a community worker who supports clients, subscribe for CLEO Connect updates to learn about upcoming webinars.
Copyright © 2023 CLEO (Community Legal Education Ontario / Éducation juridique communautaire Ontario).
Connect with CLEO / Contacter CLEO:
Facebook icon
Twitter icon
Instagram icon
Subscribe icon

CLEO (Community Legal Education Ontario)
180 Dundas Street West, Suite 506
Toronto, ON M5G 1Z8