Based on the Ontario Consumer Price Index (CPI), which is a measure of inflation calculated monthly by Statistics Canada using data that reflects economic conditions over the last year, the province has released its guideline on rent increases in Ontario for 2022 which will be 1.2%.

The guideline applies to most residential rental accommodations covered by the Residential Tenancies Act. It does not apply to rental units in buildings occupied for the first time after November 15, 2018, social housing units, long-term care homes or commercial property.

The rent increase guideline is the maximum most landlords can raise a tenant's rent without the approval of the Landlord and Tenant Board (LTB). It is applicable to most rent increases between January 1 and December 31, 2022.

Rent increases are not automatic or mandatory. Landlords may only raise rent if they gave tenants at least 90 days written notice using the correct form. In most cases, the rent increase cannot be more than the rent increase guideline. In addition, at least 12 months must have passed since the first day of the tenancy or the last rent increase. If a tenant believes they have received an improper rent increase, they may dispute it at the LTB within 12 months.

Landlords can apply to the Landlord and Tenant Board for above-guideline rent increases, under certain circumstances, such as after major capital work has been paid for and finished.

The province froze rents in 2021 by passing legislation to freeze rent at the 2020 level for the vast majority of rented units covered under the Residential Tenancies Act to provide financial relief to residents due to the pandemic. The rent increase freeze will end on December 31, 2021. Landlords can send a notice to tenants before the freeze is lifted for a rent increase that takes effect in 2022.