Here’s how much your landlord can increase your rent in 2020 in Brampton

Published January 3, 2020 at 8:56 pm

Tenants are already struggling to pay sky-high (and climbing) rental rates, and it looks like landlords will be able to impose a small but significant increase in 2020. 

Tenants are already struggling to pay sky-high (and climbing) rental rates, and it looks like landlords will be able to impose a small but significant increase in 2020. 

According to the Landlord and Tenant Board (LTB), the 2020 rent increase guideline is 2.2 per cent and applies to most private residential rental accommodation covered by the Residential Tenancies Act. 

The guideline is the most a landlord can increase the rent without applying to the LTB.

In 2018, the government allowed tenants to increase the rent by 1.8 per cent. This increase was the highest since 2013 when the government allowed tenants to increase the rent by 2.5 per cent.

The LTB says the guideline does not apply to rental units first occupied for residential purposes after November 15, 2018, vacant residential units, social housing units, nursing homes or commercial property.

While the increase (which could affect select tenants currently living in accommodations covered by the guideline) isn’t huge, the change is prompting anxiety in tenants–especially those who are currently looking for a rental. 

Due to lack of inventory and high-demand, rental rates are already expected to climb in 2020. 

According to rentals.ca, Brampton finished eighth of 34 cities listed for average monthly rent in November 2019 for one-bedroom units at $1,783 and for a two-bedroom at $1,843. 

As for when tenants can expect an increase, the LTB says that in most cases, the rent can be increased 12 months after a tenant first moved in or 12 months after the tenant’s last rent increase. 

A tenant must be served a notice of a rent increase with a Landlord and Tenant Board approved form at least 90 days before the rent increase takes effect.

The LTB says the rent increase guideline is based on the Ontario Consumer Price Index (CPI), which is calculated monthly by Statistics Canada. The 2020 guideline is calculated by averaging the percentage increase in the Ontario Consumer Price Index during the 12 months from June 2018 to May 2019. 

By law, the rent increase guideline cannot be more than 2.5 per cent, even if the CPI increase is higher.

As for above guideline increases, the LTB says landlords can apply to the LTB for an increase above 2.2 per cent for a number of reasons, including an increase in municipal taxes by more than the guideline plus 50 per cent (so if the guideline is 2.2 per cent, the taxes must have increased by more than 3.3 per cent), incurring operating costs related to security services and incurring eligible capital expenditures.

A landlord may also increase the rent at any time if the landlord and the tenant agree that the landlord will add a new service or facility such as a parking space, air conditioner or storage locker.

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