October 2025
The maximum allowable rent increase in Ontario remains unchanged from 2024 at 2.5 percent for 2025. British Columbia has set the annual allowable rent increase for 2025 at 3 percent.
The Ontario increase applies to current tenants in units that came onto the market prior to November 15, 2018, provided no above-guideline increases have been approved by the provincial Landlord and Tenant Board.
Landlords can apply for above guideline increases which tend to be tightly controlled. Increases in monthly condo fees are unlikely to be relevant when seeking an exemption from this limit.
This allowable rent increase is below Ontario’s “official” inflation of 5.4 percent. Actual inflation is considerably higher. The 2.5 percent limit for 2025 virtually assures that condo-landlords will earn less or increase their losses. This increase is below the rent control guideline based on a formula in the Residential Tenancies Act (RTA) which would have been 3.1 percent and based on inflation.
The allowable rent increase is insufficient to cover the rising cost of property taxes and condo fees.
Ontario landlords must provide tenants with written notification 90 days in advance of planned rent increases. Rents can be reset to market rates for new tenants.
The 2025 rent increase limit in Ontario does not apply to rental units first-occupied after November 15, 2018, vacant residential units, community housing, long-term care homes or commercial properties.
Ontario rent controls were first enacted in 1944 and have been in continuous use since 1976.
One approach to reducing the operational cost of rental units is for owner-landlords in condo buildings to work with their condominium corporation. Communities with a significant number of owner-landlords may choose to offer rental management services through the management office for a fee. This releases condo owners from the burden of acting as a property manager. The management office is better able to monitor what is going on in rental suites and provide oversight. Unreported problems can be identified more quickly. Tenant concerns can be addressed in a timely manner while ensuring owner interests are represented. Periodic property inspections can be undertaken as warranted. Rental management services provided by a condo corporation can lead to improved condominium management, lower costs for owner-landlords and additional revenue for the corporation.
Rent control has a history of leading to a reduction in quality of rental properties. It leads to a smaller supply of rental properties and higher rents for future renters.
