Can my landlord raise my rent again if they didn't use the full amount from the last increase they were allowed?

The situation

I live in an apartment in Ontario and I am feeling quite confused about my recent rent notice. Back in January 2023, my landlord went through a formal process to get permission to raise my rent by a specific amount due to some major renovations they completed. At that time, they were authorised to increase my monthly rent from $1,800 to $1,950, but they only actually raised it to $1,875 because they said they wanted to be fair to the tenants during a difficult time. Now, it is October 2024, and my landlord has just sent me a new notice stating that they want to increase my rent again by another $50 per month starting in January 2025. They mentioned that because they never actually collected the full extra amount they were originally granted in that previous order from last year, they are allowed to make this new request now. I have already checked my initial lease and the previous paperwork, but I cannot tell if they are allowed to 'top up' that old increase or if they have to follow the standard annual guidelines instead. Is it legal for them to claim the leftover portion of a previous authorised increase?

Detailed Analysis

Based on the facts you provided, your landlord is claiming they can 'top up' the $75 difference between the $1,875 they currently charge and the $1,950 they were originally authorized to collect in January 2023.

Under the Residential Tenancies Act, this is permitted. Specifically, the law states that "if an order is made... and a landlord has not yet taken all the increases in rent for the rental unit permissible under a previous order... the landlord may increase the rent for the rental unit in accordance with the prescribed rules"^[1]. This means that because your landlord did not collect the full $150 increase authorized by the Board in 2023, they are not necessarily barred from collecting that remaining $75 later.

However, the landlord must still follow strict rules for any new increase. They must provide you with at least 90 days written notice using an approved form^[2]. Furthermore, a landlord can generally only increase rent if at least 12 months have passed since your last rent increase^[3]. Since your last increase was in January 2023 and the new one is proposed for January 2025, the 12-month rule appears to be satisfied.

It is important to note that while the landlord can claim the 'leftover' amount from a previous order, they must still follow the standard procedures for issuing a notice of increase. If they fail to provide the proper 90-day notice, the increase is considered void^[2].

Please note that state, provincial, or local laws may add further rules, and you should check with the Landlord and Tenant Board or a local community legal clinic.

Statutory Citations

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