How Rent Increases Work in Ontario: A Guide for Landlords
In Ontario, rent increases for most residential tenancies are governed by the Residential Tenancies Act, 2006. The rules cover how often rent can go up, how much notice a tenant must receive, and how much the increase can be.
How often rent can increase
For most tenancies, rent can be increased only once every 12 months, counted from the date the tenancy began or the date of the last increase.
Notice required
A landlord must give the tenant at least 90 days' written notice of a rent increase, using the proper Landlord and Tenant Board form.
The rent increase guideline
Each year Ontario sets a rent increase guideline, which is the maximum most landlords can increase rent without approval from the Landlord and Tenant Board. According to the Government of Ontario, the guideline is 2.1% for increases taking effect in 2026 and 1.9% for increases taking effect in 2027.
Units that may be exempt from the guideline
New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018 are exempt from the guideline. The 12-month rule and the 90-day written notice requirement still apply. Confirm whether a specific unit is exempt before relying on this.
Above-guideline increases
A landlord can apply to the Landlord and Tenant Board for an increase above the guideline in specific situations, such as certain capital expenditures. The Board decides these applications.
Frequently asked questions
Can I increase rent when a new tenant moves in?
Rules for new tenancies are different. Check ontario.ca or get legal advice for your situation.
Where can I find the official rules?
The Government of Ontario publishes rent increase guidance on ontario.ca, and the Landlord and Tenant Board publishes the required forms.
This article is general information, not legal advice.
SMOOTH prepares renewals and rent increase notices for the Ontario rentals it manages. Book an owner consultation or call 1 (866) 255-1902.
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