Rent Increase Rules in Ontario

Ontario sets an annual rent increase guideline -- the maximum percentage a landlord can raise rent without seeking special approval. For 2026, the guideline is 2.1%. For 2027, the province has set it at 1.9%. This guideline applies once per unit per 12-month period, and it is the default cap for most existing tenancies covered by the Residential Tenancies Act, 2006.

A landlord must give at least 90 days' written notice before a rent increase takes effect. This notice is typically given using Form N1 (or Form N2 for certain situations). A landlord cannot increase rent more than once in a 12-month period for the same unit, even if the increase would otherwise be within the guideline.

If you receive a rent increase notice with less than 90 days' notice, or before 12 months have passed since your last increase, the increase is not valid as given.

An important exception: rental units that were first occupied for residential purposes after November 15, 2018 are fully exempt from the guideline cap. For these units, a landlord can raise the rent by any amount, provided they still give proper written notice. If you live in a newer building or a unit that was never previously rented before that date, the annual guideline does not limit your rent increase -- only the notice requirements still apply.

For units that are not exempt, a landlord who wants to raise rent by more than the guideline amount must apply to the LTB for approval, using an L5 application. This is typically used to recover costs for things like extraordinary increases in municipal taxes, capital expenditures, or increased security services. The filing fee for an L5 application is $233 for the first 10 units, plus $10 per additional unit.

A landlord cannot simply decide to charge more than the guideline on their own for a non-exempt unit -- LTB approval through this process is required first.

Check three things: (1) did you receive at least 90 days' written notice, (2) has it been at least 12 months since your last increase, and (3) if the increase is above the guideline, has the landlord actually obtained LTB approval (or is your unit exempt because it was first occupied after November 15, 2018)? If any of these do not check out, the increase may not be valid as presented, and you can raise this with your landlord or the LTB.