Changes on how the Province sets its annual Guideline Rent Increase

 

On Wednesday June 13, 2012 new legislation was passed by the government of Ontario to modify the Residential Tenancies Act as it pertains to the Province’s Guideline Rent Increase.  Previously the Guideline Rent Increase was tied to the Consumer Price Index (CPI) and could go as high as the index allowed.  The Province’s Guideline Rent Increase is still set by the CPI but cannot go higher than 2.5 %. This means that if the CPI exceeds 2.5%, the Province Guideline Rent Increase cannot be higher than 2.5%.  The Province’s Guideline Rent Increase can only be between 0% and 2.5 %.  For 2012 the Province’s Guideline Rent Increase was 3.1%.   For 2013, it is 2.5%.

To increase rents beyond the Province’s Guideline Rent Increase, landlords must apply for an AGI (Above Guideline Rent Increase).