Updated October 3, 2026 · DF Property Management
The number: 2.1%
Each year Ontario sets a rent increase guideline based on the Consumer Price Index. For increases taking effect in 2026, the guideline is 2.1% — the maximum most landlords can raise rent for a sitting tenant without approval from the Landlord and Tenant Board (LTB).
On a unit renting for $2,500 a month, that's an increase of up to $52.50, to $2,552.50.
Looking ahead to 2027: Ontario has announced a guideline of 1.9% for increases taking effect in 2027. An increase that takes effect on or after January 1, 2027 is capped at 1.9% — and because you must give at least 90 days' written notice, increases for early 2027 are being served now.
Who it applies to
The guideline applies to most private residential rental units in Ontario that are covered by rent control. The most important exception for GTA investors:
- Units first occupied for residential purposes after November 15, 2018 are generally exempt from the guideline. That covers many newer condos and newly built homes and units.
- Vacant units — rent between tenancies can be set at market rate for a new tenant.
- Social and community housing, long-term care homes and commercial properties follow different rules.
Exemption from the guideline doesn't mean exemption from the rules: the 12-month and 90-day notice requirements below still apply.
The three timing rules
- Once every 12 months. Rent can be increased no more than once in any 12-month period — counted from the tenant's move-in or the last increase.
- 90 days' written notice. The tenant must receive written notice at least 90 days before the increase takes effect, normally using LTB Form N1.
- Correct service. The notice must be given in a way permitted by the rules, and you should keep proof of how and when.
Miss one of these and the increase may be void — and any extra rent collected may have to be repaid.
Increases above the guideline
A landlord can apply to the LTB for an above-guideline increase (AGI) in limited situations — for example, significant capital expenditures (like a new roof or boiler) or extraordinary increases in municipal taxes. AGIs require a formal application with evidence, and the tenant can dispute it.
What we do for managed properties
For every tenancy we manage, we track the anniversary date, whether the unit is covered by the guideline, and the last increase. We prepare and serve N1 notices on time, and we tell you in advance what the allowable increase is — so it's never forgotten, and never issued incorrectly.
This guide is general information, not legal advice. Rules can change; check the Government of Ontario and the Landlord and Tenant Board for current requirements.