Province Sets 2009 Rent Increase Guideline



    McGuinty Government Balances Rights Of Tenants, Needs Of Landlords

    TORONTO, June 19 /CNW/ -

    NEWS

    The 2009 rent increase guideline is 1.8 per cent, the third lowest
guideline in provincial history.
    The rent increase guideline is the maximum amount by which a landlord can
increase the rent of an existing tenant without seeking the approval of the
Landlord and Tenant Board.
    The 2009 guideline applies to rent increases that occur between January 1
and December 31, 2009.
    The calculation is based on the Ontario Consumer Price Index, a reliable
and objective measure of inflation that is calculated by Statistics Canada.

    QUOTES

    "We're protecting tenants by keeping rent increases within the rate of
inflation, while ensuring that landlords can recover increases in their
operating costs," said Minister of Municipal Affairs and Housing Jim Watson.

    QUICK FACTS

    
    -   The first rent increase guideline was calculated in 1975 at 8 per
        cent.
    -   The 2009 guideline is calculated under the Residential Tenancies Act,
        which took effect on January 31, 2007, creating a new system of rent
        regulation that includes linking the rent increase guideline to the
        Ontario Consumer Price Index.
    

    LEARN MORE

    See what information the Landlord and Tenant Board can provide.
    View Frequently Asked Questions about the rent increase guideline.

    
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                                                     ontario.ca/housing-news
                                                      Disponible en français


    BACKGROUNDER
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                       THE 2009 RENT INCREASE GUIDELINE
    

    The 2009 rent increase guideline is 1.8 per cent.
    It applies to rent increases that occur in Ontario between January 1 and
December 31, 2009.
    The guideline is the maximum amount that a landlord can increase the rent
of a tenant without obtaining the approval of the Landlord and Tenant Board.
    The guideline applies to most private residential rental accommodation
covered by the Residential Tenancies Act.

    
    The rent increase guideline does not apply to:
    -   Vacant residential units
    -   Residential units first occupied on or after November 1, 1991
    -   Social housing units
    -   Nursing homes
    -   Commercial property
    

    TIMING OF RENT INCREASES

    In most cases, the rent for a unit can be increased if at least 12 months
have passed since a tenant first moved in, or if at least 12 months have
passed since the last rent increase.
    A tenant must be given proper written notice of a rent increase at least
90 days before the rent increase takes effect.
    A landlord who wishes to increase the rent by an amount higher than the
guideline must apply to the Landlord and Tenant Board.

    CALCULATION OF THE GUIDELINE

    The rent increase guideline is calculated under the Residential Tenancies
Act, and is based on the Ontario Consumer Price Index.
    The Ontario Consumer Price Index is calculated monthly by Statistics
Canada, and is regarded as a reliable and objective measure of inflation,
charting the change in the price of all goods and services in the provincial
economy.
    The 2009 rent increase guideline was calculated by averaging the
percentage increase in the Ontario Consumer Price Index for each of the
previous 12 months from June 2007 to May 2008.

    PAST RENT INCREASE GUIDELINES

    
    -----------------   -----------------   -----------------
    Year   Guideline    Year   Guideline    Year   Guideline
    -----------------   -----------------   -----------------
    2008     1.4%       1996      2.8%      1984       6%
    -----------------   -----------------   -----------------
    2007     2.6%       1995      2.9%      1983       6%
    -----------------   -----------------   -----------------
    2006     2.1%       1994      3.2%      1982       6%
    -----------------   -----------------   -----------------
    2005     1.5%       1993      4.9%      1981       6%
    -----------------   -----------------   -----------------
    2004     2.9%       1992      6.0%      1980       6%
    -----------------   -----------------   -----------------
    2003     2.9%       1991      5.4%      1979       6%
    -----------------   -----------------   -----------------
    2002     3.9%       1990      4.6%      1978       6%
    -----------------   -----------------   -----------------
    2001     2.9%       1989      4.6%      1977       8%
    -----------------   -----------------   -----------------
    2000     2.6%       1988      4.7%      1976       8%
    -----------------   -----------------   -----------------
    1999     3.0%       1987      5.2%      1975       8%
    -----------------   -----------------   -----------------
    1998     3.0%       1986      4.0%
    -----------------   -----------------
    1997     2.8%       1985       6%
    -----------------   -----------------
    

    SAMPLE RENT INCREASE GUIDELINE

    The monthly rent of an apartment is $800 beginning August 1, 2008. With
proper written 90 days notice to the tenant, the landlord could lawfully
increase the rent 12 months later on August 1, 2009.

    The guideline for 2009 is 1.8%.
    The rental increase is 1.8% of $800 (equals) $14.40
    Therefore, the new rent on August 1, 2009 could be up to $814.40 ($800 +
$14.40)

    
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                                                     ontario.ca/housing-news
                                                      Disponible en français
    





For further information:

For further information: Adam Grachnik, Minister's Office, (416)
585-6492; Eric Adams, Housing Division, (416) 585-6743

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