Rent increases in Ontario, the rules
Whether you rent a home or rent one out, the rules on rent increases are clearer than they look. There is a yearly limit for most units, a strict notice period, and one big exemption that decides which set of rules applies to you. Here is all of it in plain language, for tenants and landlords alike.
The yearly guideline
Every year the province sets an annual rent increase guideline, the most a landlord can raise the rent on most units without special approval. For 2026 the guideline is 2.1 percent. For 2027 it is 1.9 percent.
The guideline is a percentage cap set by the province each year. If your unit is covered by it, the rent cannot go up by more than that percentage in a single increase, unless the landlord gets special approval.
How often, and by how much
Rent can be increased only once every 12 months. On top of that, a tenant must have lived in the unit at least 12 months before the first increase. So a new tenant cannot face an increase in their first year, and after that there can be no more than one increase in any 12-month stretch.
The 90-day notice
A landlord must give 90 days written notice of an increase, using Form N1. A verbal heads up does not count, and neither does a quick text or a note taped to the door. The 90 days are counted before the new rent is allowed to start.
Form N1 is the official Notice of Rent Increase from the Landlord and Tenant Board. It sets out the current rent, the new rent, and the date the increase takes effect, so both sides have it in writing.
The exemption that changes everything: newer units
Here is the rule that decides which set of rules applies to you. A unit first occupied for residential purposes after November 15, 2018 is exempt from the guideline. Its rent can be raised by any amount, still with 90 days written notice. The once-every-12-months rule and the 90-day notice both still apply, but the percentage cap does not.
A unit covered by the guideline is often called rent controlled. A unit first occupied after November 15, 2018 is not, so the percentage limit simply does not apply to it, even though the notice and timing rules still do.
Say you get a notice for an increase that looks much larger than 2.1 percent. Before disputing it, you check when your building was first occupied. It turns out to be 2020, which is after November 15, 2018, so the unit is exempt from the guideline. The larger increase can be lawful, as long as you were given proper 90 days written notice and it has been at least 12 months since the last one.
Above-guideline increases
On a rent-controlled unit, meaning one that is not exempt, a landlord who wants to raise the rent by more than the guideline needs LTB approval. This is called an above-guideline increase, and it usually involves things like major repairs or large jumps in certain costs. Without that approval, the guideline is the ceiling.
The Landlord and Tenant Board is the provincial tribunal that handles residential rent and tenancy matters in Ontario. It is the body that reviews and approves an above-guideline increase.
For landlords: raising the rent correctly
The rules are just as useful from the other side of the lease. Raising the rent legally is mostly about doing it in the right order, in writing, and on time.
- Confirm at least 12 months have passed since the tenant moved in, or since the last increase, whichever applies.
- Check whether the unit is rent controlled or exempt. If it was first occupied for residential purposes after November 15, 2018, it is exempt from the guideline. If not, the 2026 guideline of 2.1 percent is your limit.
- Give 90 days written notice on Form N1, showing the current rent, the new rent, and the effective date.
- If you want more than the guideline on a rent-controlled unit, apply for an above-guideline increase and wait for LTB approval before charging it.
A landlord with a rent-controlled unit wants to raise the rent for the coming year. The last increase was more than 12 months ago, so the timing is fine. Rather than guessing, the landlord applies the 2026 guideline of 2.1 percent, fills out Form N1 with the current rent, the new rent, and the start date, and delivers it 90 days ahead. The increase is clean, on time, and hard to dispute.
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