Ontario Rent Increases
Ontario Rent Increase Guideline for Landlords
Ontario's rent increase guideline establishes the maximum percentage by which most landlords can increase the rent for a rent-controlled residential tenancy without approval from the Landlord and Tenant Board. The guideline is determined annually under the Residential Tenancies Act, 2006.
The Ontario rent increase guideline for 2027 is 1.9%. The guideline for 2026 is 2.1%. The applicable guideline is determined by the year in which the rent increase takes effect.
2027
1.9%
Ontario Rent Increase Guideline
2026
2.1%
Ontario Rent Increase Guideline
How Does the Ontario Rent Increase Guideline Work?
For most rent-controlled residential tenancies, a landlord may increase the rent only after at least 12 months have passed since the tenant's last rent increase or, if there has not been a previous increase, since the tenancy began. The landlord must also provide the tenant with at least 90 days' written notice of the rent increase using the applicable Landlord and Tenant Board form.
12 Months
Between permitted rent increases in most cases
90 Days
Minimum written notice generally required before the increase takes effect
Annual Guideline
Maximum guideline increase for most rent-controlled tenancies without LTB approval
Does the Ontario Rent Increase Guideline Apply to Your Rental Unit?
The Ontario rent increase guideline applies to most private residential rental units covered by the Residential Tenancies Act, 2006. However, Ontario law provides exemptions from the rent increase rules for certain rental units, including qualifying newer rental housing.
New Buildings and Additions
The rent increase guideline generally does not apply to a rental unit in a building where no part of the building was occupied for residential purposes on or before November 15, 2018. An exemption may also apply to a rental unit located entirely within an addition where no part of that addition was occupied for residential purposes on or before November 15, 2018.
New Rental Units in Existing Houses
Certain rental units created after November 15, 2018 in detached houses, semi-detached houses or row houses may also be exempt from the rent increase rules when the specific requirements of the Residential Tenancies Act, 2006 are satisfied. The exemption is subject to additional statutory conditions and should not be determined solely by the date the rental unit was created.
The Landlord Must Establish the Exemption
Where the application of a rent-control exemption is disputed, the landlord bears the onus of establishing that the applicable statutory requirements are satisfied. Records relating to the construction, completion and first residential occupancy of the building, addition or rental unit may therefore be important.
Guideline Rent Increase vs. Above Guideline Increase
A guideline rent increase and an Above Guideline Increase are different mechanisms under Ontario residential tenancy law. Understanding the distinction can help a landlord determine which rules may apply to a proposed rent increase.
Guideline Rent Increase
For most rent-controlled tenancies, the annual rent increase guideline establishes the maximum percentage by which a landlord may increase the rent without approval from the Landlord and Tenant Board, provided the applicable timing and notice requirements are satisfied.
- Annual percentage set for Ontario
- Generally subject to 12-month timing requirements
- Generally requires at least 90 days' written notice
Above Guideline Increase (AGI)
An Above Guideline Increase allows a landlord to apply to the Landlord and Tenant Board for an increase above the annual guideline when one or more permitted AGI grounds are established and the applicable legal requirements are satisfied.
- Requires an application to the Landlord and Tenant Board
- Available only on permitted AGI grounds
- May involve eligible capital expenditures and other statutory grounds
Landlords considering significant capital repairs, replacements or improvements may wish to assess whether an Above Guideline Increase is available rather than relying solely on the annual rent increase guideline.