2025 Rent Increase Guideline

Multi-Residential Housing Law


The Ministry of Housing has confirmed the rent increase guideline for 2025 will remain at 2.5%, unchanged from 2024, and will be in effect through December 31st, 2025.

The Ministry is required to calculate and publicize the rent control guideline for the coming year prior to August 31st. The prescribed formula in the Residential Tenancies Act would have resulted in a guideline increase of 3.1% based on extraordinary inflation over the last year; however, the legislation caps the annual guideline so that it will not exceed 2.5% in any calendar year.  

This is the third year in a row where the guideline has trailed inflation leaving landlords to absorb the difference.  Many landlords continue to utilize above guideline rent increase (AGI) applications to offset property tax increases and capital repair costs.


The threshold to recover an extraordinary property tax increase will remain at 3.75% in 2024 and 2025 (2.5% guideline + 50%). Landlords that faced increased property taxes between 2023 and 2024 should review their property tax expenses this summer to see if they qualify for a Tax AGI.


The Landlord Tenant Board has added resources to address the backlog of AGI Applications; however, delays persist. The LTB conducts virtual case management and merit hearings for applications that include 4 or more capital expenditures. The Board continues to utilize the written hearing format for tax AGIs and applications with 3 of fewer capital items claimed.


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