What London Renters Should Know About Temporary Rent Increases

A recent court ruling in Toronto is making headlines—and it has important implications for renters across Ontario, including right here in London. The case involves above-guideline rent increases, or AGIs, and what happens when landlords don't remove them when they're supposed to.

What Happened in the CAPREIT Case

CAPREIT, one of Canada's largest landlords, lost an appeal against 16 tenants at a Toronto apartment building. Back in 2013, the landlord received approval for an 8.3% above-guideline rent increase to cover building upgrades. These AGIs are designed to be temporary—in this case, approved for 10 years.

When 2023 rolled around, CAPREIT was supposed to remove the full 8.3% increase from tenants' rent. Instead, they only removed 2.5%.

Ontario's Divisional Court ruled definitively: the entire increase should have been removed. CAPREIT was ordered to pay $5,000 in legal costs, and the tenants won their case.

Why This Matters for London Renters

London has a significant rental population. With Western University and Fanshawe College bringing in thousands of students each year, plus young professionals and families who rent by choice or necessity, rental housing is a major part of our market.

Many London apartment buildings—particularly older purpose-built rentals near the downtown core, along Oxford Street, or in areas around Masonville—have been around long enough to have received AGI approvals over the years. If you're renting in one of these buildings, it's worth understanding how these increases work.

Understanding Above-Guideline Rent Increases

In Ontario, landlords can apply for above-guideline rent increases through the Landlord and Tenant Board. These increases are typically approved to cover:

- Major capital improvements (new roof, elevator repairs, etc.) - Significant increases in operating costs - Security services

The key point? Many AGIs are temporary. They're meant to allow landlords to recover the cost of specific improvements over a set period—often 10 to 15 years. After that period ends, the increase should be removed from your rent.

The Problem: Temporary Can Become Permanent

As the CAPREIT case illustrates, temporary rent hikes can quietly become permanent if no one challenges them. Tenant advocates warn that many Ontario renters may still be paying expired AGIs without even realizing they were supposed to end.

This isn't necessarily malicious—sometimes it's administrative oversight. But the effect on tenants is the same: you're paying more than you should be.

What You Can Do

If you're a renter in London, here are some steps to protect yourself:

1. Request your rent history. You have the right to ask your landlord for documentation showing how your current rent was calculated, including any AGIs that have been applied.

2. Check expiry dates. If an AGI was applied, find out when it was approved and for how long. If the period has expired, that increase should no longer be part of your rent.

3. Know your rights. The Landlord and Tenant Board has resources to help tenants understand rent calculations. If you believe you're being overcharged, you can file an application for a rent reduction.

4. Keep records. Save copies of all lease agreements, rent increase notices, and correspondence with your landlord.

The Bottom Line

This ruling reinforces an important principle: tenants have the right to question whether their rent is being calculated correctly. Temporary increases are supposed to be exactly that—temporary.

Whether you're renting near the Thames River, close to Fanshawe College, or in one of London's established neighbourhoods, understanding your rights as a tenant is essential.

Have questions about the London rental market—or thinking about making the transition from renting to owning? I'd love to help. Reach out to me at Calford & Co. Real Estate Team for a no-pressure conversation about your options.