Ontario rent increases set at 1.5 per cent for 2017

The Government of Ontario has set the 2017 guideline for rent increases and while the new rate sits below inflation, critics say the rent increase guideline needs to be rethought.

Theguideline, which is set by the Province of Ontario, outlines the maximum percentage by which landlords can increase a tenant's rent based on theOntario Consumer Price Index. Exceptions can be madebut only with approval fromthe Landlord and Tenant Board.

Next year, landlords will only be able to raise rent 1.5 per cent down 0.5 per cent from 2016.

A flawed system

Kenneth Hale, legal director of the Advocacy Centre for Tenants Ontario, said while the year-over-year decrease is good, he believesthe system as a whole is flawed.

"There are some problems with the rent regulation system," said Hale. "This guideline doesn't apply to all private rental housing, as it should."

It applies to most private and residential rental units exceptvacant residential units, social housing, nursing homes,commercial property or residential units first occupied on or after November 1, 1991.

Guideline under review

Hale said the government will soon reconsider ifthe guideline is an appropriate tool, as part of a mandatory five year review.

He said the Advocacy Centre for Tenants Ontario is asking the government to begin considering tenants' ability to pay their rent, when setting the guideline, which has been in place since 2011.

Well-paid renters are often able to absorb rent increase with little difficulty, but he said it's a different story for people at the low end of the income scale.

"We don't really see increases all the time in Ontario works and Ontario disability, for example. So are those tenants falling behind? Are more and more people having to go to food banks in order to make sure they can pay their rent? We don't really know," he said.