What You Need to Know About the Ontario Guideline Rent Increase for 2025

Every year, the Ontario government issues a "rent increase guideline" to cap the amount a Landlord can raise the rent for that year in most private residential rental units. This guideline applies to most rented houses, apartments, basement apartments and condos (click here for more information about special exceptions for things like newly occupied units), and excludes things like vacant residential units, community housing units, long-term care homes and commercial properties. For 2025, that amount is 2.5%. To learn more about guideline rent increases click here.

According to the government of Ontario, "The guideline is based on Ontario’s Consumer Price Index, a measure of inflation calculated by Statistics Canada using data that reflects economic conditions over the past year. Under the Residential Tenancies Act, the guideline is capped at 2.5 per cent to help protect tenants from rising interest rates that would result in higher rent. Without the cap, the recent rate of inflation would have resulted in an increase of 3.1 per cent in 2025."

If you wold like to know more about an above guideline increase, or to get more information to see if you qualify, check out our article "Ontario Rent Increases - Guideline or Above?" here.

As always, remember that this blog should not be taken as legal advice and is no substitute for a consult about your specific facts. If you have questions about the Ontario guideline rent increase for 2025, call Jon today at 519-564-3242 to discuss how this could apply to you. You can also read the original Government of Ontario Bulletin, here.

Jon Sparling - Paralegal