The housing market remains hot, but renters might be relieved to know where the annual rent increase guideline caps off next year.
The province is expanding rent control to all private market rental housing units, wherein 250,000 more tenants will have their rent capped at the annual rent increase guideline of 1.8 percent in 2018.
The annual rent increase guideline currently stands at 2.5 percent.
This decreased cap-off aims to protect tenants from unfair rent increases and help cool down the housing market.
The 1.8 percent guideline is the maximum a landlord can raise a tenant’s rent without the approval of the Landlord and Tenant Board, and applies to rent increases starting January 1, 2018.
According to the province, the guideline is based on the Ontario Consumer Price Index, which is a measure of inflation calculated by Statistics Canada that reflects economic conditions over the past year.
The guideline doesn’t apply to vacant residential units, social housing units, nursing homes or commercial property.
For the 1.2 million private rental households in Ontario, however, tenants can hope to feel some relief with the new cap-off guideline.