A landlord owns a residential property in Ontario where the current monthly rent is $1,800. The provincial guideline for rent increases for the upcoming year is 2.5%. If the landlord wishes to implement the maximum allowable rent increase, what will be the new monthly rent, assuming the unit is not exempt from the guideline?

Question: A landlord owns a residential property in Ontario where the current monthly rent is $1,800. The provincial guideline for rent increases for the upcoming year is 2.5%. If the landlord wishes to implement the maximum allowable rent increase, what will be the new monthly rent, assuming the unit is not exempt from the guideline?

Answer options:

• $1,825.00 ✅ $1,845.00
• $1,850.00
• $1,900.00

Correct answer: $1,845.00

Explanation: Under the Ontario Residential Tenancies Act, the maximum allowable rent increase for a non-exempt unit is the provincial guideline. New rent = Current Rent * (1 + Guideline Rate) = $1,800 * (1 + 0.025) = $1,800 * 1.025 = $1,845.00.