Rent increases are a common concern for tenants in Ontario, especially in a competitive rental market. While landlords have the legal right to increase rent, there are strict rules they must follow under the Residential Tenancies Act (RTA). If your rent is going up, it’s important to understand your rights, verify if the increase is legal, and know how to dispute an unfair rent hike.
This guide covers how rent increases work in Ontario, when you can challenge an increase, and how to dispute unlawful rent hikes.
1. How Rent Increases Work in Ontario
In most cases, landlords can only increase rent once per year and must follow rent control laws.
Key rules for rent increases:
- Landlords must give 90 days’ written notice before increasing rent.
- The increase cannot exceed the guideline set by the Ontario government (unless an exemption applies).
- Rent can only be raised once every 12 months.
If a landlord raises rent illegally, you are NOT required to pay the increase.
For more details, check Ontario’s Rent Increase Guidelines.
2. What Is the Rent Increase Guideline for 2024?
Each year, the Ontario government sets a maximum allowable rent increase for most rental units.
For 2024, the rent increase guideline is 2.5%.
This means landlords can only increase rent by up to 2.5% in most cases.
Exceptions:
- Some buildings are exempt from rent control (e.g., new buildings occupied after Nov 15, 2018).
- A landlord can apply for a higher increase due to major repairs or increased costs (Above Guideline Increase – AGI).
For the latest rent increase guideline, check Ontario’s Rent Control Rules.
3. When Can You Legally Challenge a Rent Increase?
You can dispute a rent increase if the landlord did not follow legal requirements.
Reasons to dispute a rent increase:The increase is higher than the guideline and no AGI approval was granted.You did not receive 90 days’ written notice.The increase was applied less than 12 months after the last one.Your rental unit is covered by rent control laws but the landlord is charging more than allowed.
If any of these apply, you can refuse to pay the increase and file a dispute.
For more, check How to Challenge an Illegal Rent Increase.
4. How to Dispute an Unfair Rent Increase
If you believe your rent increase is illegal or excessive, follow these steps:
Step 1: Talk to Your LandlordPolitely ask for proof that the increase follows the law.Request to see the AGI approval if the increase exceeds the guideline.Document the conversation in writing (email or letter).
Step 2: File a Complaint with the Landlord and Tenant Board (LTB)Complete Form T1 – Tenant Application for a Rebate (available here).Submit your form online, by mail, or in person.The LTB will schedule a hearing, where you can present your case.
Step 3: Attend the HearingBring proof of the illegal increase (rental history, lease agreement, written notices).Provide copies of rent control laws that support your case.The LTB may cancel or reduce the increase if it’s illegal.
If you need legal help, a paralegal can assist with your case.
For more, check How to File a Tenant Complaint.
5. What If Your Landlord Claims the Unit Is Exempt from Rent Control?
Some rental units do not fall under rent control rules, but landlords must still follow proper procedures.
Exempt units include:
- New buildings first occupied after November 15, 2018.
- Commercial or mixed-use properties where the rental unit is not the primary use.
Even if your unit is exempt from rent control, your landlord must:Give 90 days’ notice before an increase.Only increase rent once every 12 months.Follow lease agreement terms regarding rent adjustments.
For details, check Understanding Rent Control Exemptions.
6. Can a Landlord Evict You for Disputing a Rent Increase?
No! It is illegal for a landlord to evict or harass you for challenging a rent increase.
If a landlord tries to retaliate:File a T2 Application – Tenant Rights Violation with the LTB.Gather evidence of threats, illegal eviction attempts, or harassment.Contact local bylaw enforcement or a tenant rights organization.
For more, check How to Fight an Illegal Eviction.
Final Thoughts: Know Your Rights and Stand Your Ground
Key Takeaways:
- Landlords must follow strict rules when increasing rent.
- The 2024 rent increase guideline is 2.5%.
- You can dispute illegal rent hikes through the Landlord and Tenant Board.
- Some units are exempt from rent control, but landlords still have rules to follow.
- Landlords cannot retaliate against tenants for disputing a rent increase.
Need help disputing a rent increase? Contact Carson Frankum for tenant rights assistance.
