Raising Rent in Ontario

For most Ontario rentals, rent can go up only under the rules in the Residential Tenancies Act, 2006 and the yearly guideline published by the province. Three things must line up: the amount, the timing and the notice.

• Amount. The guideline is 2.1% for 2026 and 1.9% for 2027, as published on the Ontario rent increase guideline page. The guideline is capped at 2.5%. For example, on rent of $1,500 a 2.1% increase is up to $31.50, which makes $1,531.50.
• Timing. At least 12 months must have passed since the last rent increase for that tenant in that unit, or since the tenancy began if there has been no increase. In most cases the rent cannot go up until at least 12 months after the tenant moved in.
• Notice. At least 90 days' written notice in the proper form must be given before the increase takes effect. The 90 days applies to any increase.

The tenant-side version of these rules is in Ontario rent increase rules, and a short answer is on how much can a landlord increase rent.

Not every unit is covered. The guideline does not apply to:

• new buildings, additions to existing buildings and most new basement apartments occupied for the first time for residential purposes after November 15, 2018;
• a unit on turnover, where the landlord and the new tenant agree on the rent;
• community housing, long-term care and commercial premises.

The post-2018 exemption is not automatic for every unit. If it is disputed, you should be able to prove the unit was first occupied for residential purposes after that date. A new unit in an existing house, such as a basement apartment, has extra conditions: it was built in previously unfinished space, or the owner lived in another part of the house.

If a unit is only partly exempt you use an N2. For a tenancy that includes care services and meals you use an N3. In all other cases the form is the N1. The names are on the LTB forms page: N1 Notice of Rent Increase, N2 Notice of Rent Increase (Unit Partially Exempt), and N3 Notice to Increase the Rent and/or Charges for Care Services and Meals.

A seasonal air conditioner increase is a new, separate case from July 1, 2026. It is exempt from the 90-day and 12-month rules, and where the landlord pays the electricity a seasonal increase capped at actual cost is allowed.

1. Count the months. Confirm 12 months have passed since the last increase or the day the tenant first moved in.
2. Check the cap. Check the guideline for the year the increase takes effect, and whether the unit is exempt.
3. Fill in the form. Use the N1, N2 or N3 from the LTB.
4. Give the notice. The increase can take effect no sooner than 90 days after the notice. Keep a copy and a record of when you gave it.
5. Update the rent deposit. If the lawful rent goes up after a tenant paid a rent deposit, you may ask them to top it up, as long as it stays at or below the lesser of one rent period and one month's rent. See the Ontario rent deposit guide.
6. Pay deposit interest. Interest on the rent deposit is owed every year at the guideline rate, which is 2.1% for payments falling due in 2026 and 1.9% for 2027. You may use some or all of the interest to top the deposit up to the new limit.

Giving a rent increase notice does not waive a notice of termination you have already served, unless you and the tenant agree otherwise. You can read about notices that end a tenancy in the landlord notice guide for Ontario.

Fixed term. The sources for this guide do not give a separate rule for increases inside a fixed term. The same guideline, 12-month and 90-day rules apply to tenancies in general.

Renewal. When a fixed term ends and nothing new is signed, the tenancy continues month to month on the same terms, subject to any rent increases charged in line with the Act. The tenant does not have to sign a renewal or new lease to stay, and refusing to sign one is not a ground to end the tenancy. If you offer a new lease with a higher rent, the Act's rules about rent increases still have to be followed. After a standard lease is signed, it can be changed only by written agreement of both sides, apart from rent increases the Act itself allows.

Sale of the building. A new owner cannot raise the rent right away. The 12 months count from the last increase for that tenant in that unit, not from the sale date, and 90 days' written notice is still needed.

Between tenants. When a tenant moves out, the landlord and the new tenant agree on the rent. That turnover is itself an exemption from the guideline.

If you want more than the guideline, there are two routes.

• Apply to the LTB on an L5. The grounds are significant municipal tax increases, capital expenditures and security service costs. An increase for capital expenditures or security services cannot be more than 3% above the guideline each year, for up to three years. The fee is $233 for the first ten units plus $10 for each additional unit, up to a maximum of $1,000, as listed on the forms page.
• Agree with the tenant on an N10. The agreement can go up to 3% above the guideline, and the tenant has 5 days to withdraw.

Without one of these, a landlord must get approval from the LTB before charging more than the guideline.

An increase is open to challenge if any of these is true:

• the notice gave less than 90 days;
• it was not on the proper form, or not in writing;
• fewer than 12 months had passed since the last increase or the start of the tenancy;
• the amount is above the guideline and the unit is not exempt, with no LTB approval or N10 agreement;
• the unit was claimed as exempt but the landlord cannot prove it.

Extra charges can also break the rules. The Act bans fees and penalties unless a regulation allows them, so a late fee or an extra charge for guests is not allowed. A landlord also may not charge a pet deposit. A tenant or former tenant can apply to the LTB for an order that the landlord repay money collected in breach of the Act, within one year after it was collected.

If an increase notice has gone wrong, the safest fix is to serve a new, correct notice and wait the full 90 days. Read can a landlord raise the rent anytime for the short answer.

This guide explains the rules in general terms; for a specific case, ask the tribunal or a licensed legal professional.