The Annual Guideline Rent Increase for 2011 is being described as the lowest guideline increase in the 35-year history of rent regulation in Ontario. It has been set at 0.7% and is the maximum a landlord can increase the rent of existing tenants. The landlord will have to seek the approval of the Landlord and Tenant Board to increase rents above the guideline of 0.7%. However, due to ‘vacancy decontrol’, landlords can charge new tenants whatever the market will bear.
This new guideline increase will take effect between January 1 and December 31, 2011.
Tenants should note that the Above Guideline Increase has also been lowered for that period.
Check our link Annual Rent Increase Guideline for more information on: i) how this increase impacts Last Month Rent (LMR) and, ii) The Ministry of Housing’s clarification of how the HST will be applied to Above Guideline Increase.
You can also check this link at the Ministry of Municipal Affairs and Housing for complete details of this announcement: http://www.news.ontario.ca/mah/en/2010/06/2011-rent-increase-guideline.html
East York Tenants Group 
I think this is totally againts the constitution, since when can’t a investor protect his investment when the lanlord Tennant act controls each and every move. I would advise anyone not to invest in apartments or townhouse and a lanlord you have no rights.
Dennis McIntaggart
Good news indeed for us poor, battered tenants.
And can any of us truly predict the future? I think not! I, for one, will simply enjoy the lower increase (especially since my pay isn’t increasing much either next year!) and worry about/deal with 2012, etc. in due course. There are not many obvious positives these days, so let’s celebrate the few that come our way!
That’s good news, at least for 2011. But what about the next year and the year after…? Are we having a provincial election in another year or so? Why do I have the feeling that this is just a pre-election bribe by the McGuinty govt? There is a huge population of tenants compared to landlords and that adds up to lots of votes! I suspect that the rent increase for the following year and after will be hiked up to 4-5% if not more. Thanks for the good news but I won’t be bribed to vote for you Mr. McGuinty.