Tenant Trust
Tenant Trust

Ontario Rent Increase Guide (2026 & 2027)

Straight answers to the question every Ontario landlord asks: how much can I raise the rent, and when?

Updated October 2026 · Ontario Residential Tenancies Act, 2006

The short version: For a rent-controlled unit the most you can raise rent is the provincial guideline — 2.1% in 2026 and 1.9% in 2027 — with at least 90 days' written notice on Form N1, and only once every 12 months. Some newer units are exempt and use Form N2.

1. The rent increase guideline

The guideline is the annual cap on rent increases for covered (rent-controlled) units. It's set province-wide — the same in Sudbury as in Toronto — and can never exceed 2.5%.

The guideline for the year the increase takes effect is the one that applies. On a $1,500 rent that's $1,531.50 in 2026 (+$31.50/mo at 2.1%) or $1,528.50 in 2027 (+$28.50/mo at 1.9%). Use the rent increase calculator for your exact number and dates.

2. Is your unit rent-controlled? (N1 vs N2)

This single fact decides everything:

The landlord carries the burden of proving an exemption, so keep records. Not sure? Try the rent-control test.

3. The three rules that always apply

  1. 90 days' written notice — notice must be served at least 90 days before the increase takes effect. Serve on day 89 and the increase is invalid.
  2. 12 months between increases — you can't raise rent until 12 months after the last increase (or since the tenancy began).
  3. Once per 12 months — only one increase in any 12-month period.

Timing example: to take effect January 1, 2027, notice had to be served by October 3, 2026 — that window has passed. The calculator shows your earliest lawful date from today.

4. Serving the notice

Use the current LTB form for the year, and follow the RTA's service rules (methods and timing). Keep a certificate of service — if you ever need to prove notice, that's the document that matters.

5. Above-guideline increases (AGI)

Only for specific costs — usually eligible capital or security work — via an application to the Landlord and Tenant Board. Increases are typically capped at 3% above the guideline and phased in over up to three years. It's an application, not a notice.

6. Mistakes that void an increase

Common questions

How much can rent go up in 2027?

For rent-controlled units, 1.9% — the 2027 guideline. Exempt units (first occupied after Nov 15, 2018) can go up by any amount on Form N2.

Can I raise rent above the guideline?

On a covered unit, only through an approved Above Guideline Increase at the LTB, or if the unit is exempt from rent control.

Do I need to give 90 days' notice in writing?

Yes — at least 90 days, in writing, on the correct LTB form.

What if my tenant agrees to a bigger increase?

The guideline still applies to rent-controlled units; the 12-month limit and the cap can't be waived by agreement.

Rather not do it yourself?

We prepare and serve rent increases for Ontario landlords — flat fee, done correctly.

Calculate my increase → See compliance services →
General information — not legal advice. Tenant Trust is not a law firm and does not represent anyone at the Landlord and Tenant Board. Rules, forms, and figures change — confirm the current guideline and forms on ontario.ca and the LTB before serving any notice.