Tenants will enjoy the smallest rent increases in the 35 year history of rent controls in Ontario.

The rent increase guideline for the year 2011 has been set at 0.7 per cent.

Since 1975, the annual rent increase guideline has been an essential part of Ontario’s system of landlord-tenant relations. It is the maximum amount that a landlord can increase the rent of most tenants during a year without obtaining special approval by the Landlord and Tenant Board.

In the past, the rent increase guideline has varied dramatically. It has been as high as eight per cent per year, and for many years it was six per cent per year.

In 2006, the McGuinty government created a new balanced system of rent regulation, which results in fairer rents for tenants, helps landlords to protect their investments, and ensures the rental housing market remains strong.

Our approach included a new method for calculating the rent increase guideline based on the actual cost of living, as reflected in the Consumer Price Index.

The Ontario Consumer Price Index is calculated monthly by Statistics Canada, and is a reliable and objective measure of inflation, charting the change in the price of all goods and services in the province.

By linking the rent increase guideline to the Ontario Consumer Price Index, tenants are protected from receiving a rent increase well above the rate of inflation, while landlords are able to recover increases in their costs.

The rent increase guideline applies to most private residential rental accommodation. The guideline does not apply to social housing units or nursing homes.

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.

To obtain further information on the rent increase guideline or any other aspect of rent regulation in Ontario, contact your local office of the Landlord and Tenant Board.

The board can be reached by calling toll-free 1-888-332-3234. In Toronto, the board can be reached by calling 416-645-8080. Information is also available on the board’s website at www.ltb.gov.on.ca