Archive for July 11th, 2012

UPDATE – Effective December 31, 2012, rents will be reduced by 0.71%. For more information refer to our post “Automatic Rent Reduction in 2013” https://eastyorktenantsgroup.com/2012/12/13/automatic-rent-reduction-in-2013/

Annual Rent Increase Guideline for 2013 will be 2.5%.  The 2.5% guideline represents  the maximum percentage by which a landlord can increase rent in 2013.

Tenants should note that the Ontario government bases the calculation of the annual rent increase on the Consumer Price Index (CPI) which is compiled annually by Statistics Canada.  The CPI which is currently calculated at 2.6% is higher than 2.5% approved for the 2013 annual rent increase. This decrease was the result of legislation passed by the Ontario Government on June 13, 2012 and which  resulted in an amendment to the Residential Tenancies Act, 2006. This amendment ensured that the Annual Rent Increase Guideline for 2013  will be capped at 2.5 per cent.  Is it possible that the government is acknowledging that the CPI formula is flawed and does not reflect the actual cost of living expenses?  Will leave that question for the economists to ponder.

We tenants are grateful that rent increases have been capped and, compared to the 2012 Rent Increase Guideline, there will be a decrease in the annual rent increase guideline for 2013.  However, we must keep in mind that landlords can apply to the Landlord and Tenant Board for an Above Guideline Increase. Landlords will have to make a successful application to the Landlord and Tenant Board in order to raise rents above the capped increase of 2.5%.

Once again the Federation of Rental-Housing Providers of Ontario (FRPO) have indicated they are not enthused by the level of the annual rent increase. The FRPO argued for a much higher increase in their submission to the Ontario government. Refer to this link: http://www.frpo.org/documents/FRPO%20Bill%2019%20Deputation1.pdf  Fortunately for tenants the legislation passed by the Government of Ontario reflected the current economic realities facing renters and set a cap of 2.5% on the 2013 annual rent increase.

For more detailed information on the 2013 Rent Increase Guideline check these links:



IMPORTANT NOTICE ON LAST MONTH RENT (LMR) – The landlord must pay the tenant interest on the rent deposit every year. Under the Residential  Tenancies Act the interest charged on your last month’s rent will be equal to that year’s Annual Rent Increase Guideline amount. Landlords have the option to add that interest to your last month’s rent deposit or that interest can be applied as a reduction in your annual notice of a rent increase. Check this link: http://www.ltb.gov.on.ca/en/Key_Information/STDPROD_098894.html


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