Real estate investors, for 2024 you are allowed to increase rent by 2.5% based on the 2 following criteria:

1. You have to provide 90 days notice from the end of the month via N1 form. For example, if you intend to increase rent on Jan 1, 2024, the latest date to provide the N1 form is Sep 30, 2023 not Oct. 1, 2023.

2. You are only allowed to increase rent once per 12 month period. For example if the landlord has increased rent by 2% in July 2023, they’ll have to wait till July 1, 2024 to increase rent by up to 2.5% with N1 notice no later than the end of March 2024 to account for the 90 day notice requirement.

There are 2 exemptions to rent control:

1. New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018 are exempt from rent control. For these rental units, N2 form is be used

2. The guideline does not apply to certain types of units including:

• community housing units

• long-term care homes

• commercial properties

• vacant residential units. Once the tenant moves out, the landlord can reset the rent to the current market value at that time

As a landlord, you do not have to increase rent by the full 2.5%. Every scenario is unique. If you’ve had your tenant for a long time and your current rent is well below market rent, it makes sense to increase by the full 2.5%. 3 factors to consider when deciding by how much to increase rent by:

1. The quality of the tenant and how well they’ve been taking care of the property

2. Increase in expenses such as mortgage payment, property tax, utilities and insurance

3. Current market rents in the area

Here are links to the N1 form , N2 form and Government of Ontario’s rental increase guidelines.

And until next time…..happy investing!!