The Annual Rent Increase Guideline
Each year, the Ontario government publishes a rent increase guideline, which is the maximum percentage landlords can raise rent without LTB approval. For most residential units covered by the Residential Tenancies Act:
2026 Rent Increase Guideline
2.1%
The guideline is based on the Ontario Consumer Price Index and is capped at 2.5% by law even when inflation is higher, so the 2.1% figure for 2026 sits below that ceiling. This protects tenants while allowing landlords some room for increases.
Planning ahead? The 2027 guideline is 1.9%, and it applies to increases that take effect on or after January 1, 2027.
When You Can Increase Rent
You can increase rent only when:
- 12 months have passed since the last rent increase or since the tenancy began
- 90 days written notice is given using the proper N1 form
- The increase takes effect on the first day of a rental period (usually the 1st of the month)
Important
You cannot increase rent mid-tenancy without proper notice, even if you forgot to increase it the previous year. Each increase requires a fresh N1 notice.
The N1 Notice
The N1 (Notice of Rent Increase) is the official form you must use to notify tenants of a rent increase. It must include:
- The tenant's full name and rental unit address
- The current rent amount
- The new rent amount
- The effective date of the increase
- Your signature
Exemptions
Some units are exempt from rent control and the guideline doesn't apply:
- Units first occupied after November 15, 2018
- Community housing and non-profit housing
- Commercial units
- Units in buildings with fewer than 3 residential units where the landlord lives in one
If your unit is exempt, you can increase rent by any amount, but you still need to provide 90 days notice using the N1 or N2 form.
Above-Guideline Increases
If you need to increase rent by more than the guideline (for capital repairs, operating cost increases, or security services), you must apply to the LTB for an Above Guideline Increase (AGI). This is a formal application process with hearings.
Calculating Your New Rent
The calculation is straightforward: multiply your current rent by the guideline percentage and add it to the current rent.
Example for 2.1% guideline:
$1,500 × 2.1% = $31.50
$1,500 + $31.50 = $1,531.50 new rent
Use our Rent Increase Calculator →
Common Mistakes
Not waiting 12 months
You must wait 12 full months between increases
Wrong effective date
Must be the first day of a rental period
Less than 90 days notice
Notice must be served at least 90 days before
Wrong form
Use the current N1 form from the LTB website
Exceeding guideline
Rent-controlled units are capped at the annual guideline
Related Resources
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