Ontario rent increase rules and exemptions

The rules that decide how much and how often rent can go up in Ontario, and which units are treated differently.

Most units can have rent raised once every 12 months, with at least 90 days' written notice.
For rent-controlled units, the increase can't exceed the annual guideline set by the Province: 2.5% for 2025, 2.1% for 2026 and 1.9% for 2027.
Some units first occupied for residential purposes after November 15, 2018 are exempt from the guideline limit, but the 12-month and 90-day rules still apply.
Increases above the guideline need an application to the Landlord and Tenant Board, or a written agreement in specific situations.

The annual rent increase guideline

Each year Ontario publishes a rent increase guideline: the maximum percentage most landlords can raise rent for a sitting tenant without Board approval. It's based on the Ontario Consumer Price Index and is capped at 2.5%.

The guideline that applies is the one for the calendar year the increase takes effect, not the year the notice is given. An increase taking effect in March 2027 uses the 2027 guideline even if notice was served in 2026.

Use the rent increase calculator to see the guideline amount, the new rent and the key dates for your unit.

The 12-month rule and 90 days' notice

Rent generally can't be increased until at least 12 months have passed since the tenancy started or since the last lawful increase.

The landlord must give the tenant at least 90 days' written notice before the increase takes effect, using the proper LTB form. A notice that's late or on the wrong form may mean the increase isn't lawful.

Form N1 is generally used for guideline increases (and approved above-guideline increases).
Form N2 is generally used where the unit is exempt from the rules that limit the amount of an increase.
Form N10 is used for an agreement to increase rent above the guideline in specific cases, such as added services.

Which units are exempt from the guideline?

A unit first occupied for residential purposes after November 15, 2018 is generally exempt from the guideline limit. The same can apply to a new addition to an existing building or a basement unit that wasn't lived in before that date. Units that were already lived in by November 15, 2018 remain rent-controlled.

Certain other units, such as some social and non-profit housing, have their own rules. Exemption doesn't remove the timing rules: exempt units still need 12 months between increases and 90 days' written notice.

Whether a specific unit qualifies depends on its facts. If you're not sure, check the official guidance or get legal advice before relying on an exemption.

Above-guideline increases (AGIs)

A landlord of a rent-controlled unit can apply to the Landlord and Tenant Board for an increase above the guideline in limited cases: an extraordinary increase in municipal taxes, eligible capital expenditures, or certain operating costs for security services. If approved, the extra increase is capped and may be phased in.

Keeping rent increase records

Keep a copy of each notice, how and when it was served, the effective date and the new rent. Clean records make the next increase straightforward and help if an increase is ever disputed.

Common questions

Can I raise rent between tenants in Ontario?

Generally yes. When a unit becomes vacant and a new tenant moves in, the landlord and new tenant can agree on the starting rent. Guideline limits then apply to future increases for that tenant if the unit is rent-controlled.

What if the tenant doesn't agree to a guideline increase?

A properly noticed guideline increase doesn't need the tenant's agreement. It takes effect on the date in the notice if the notice and timing are correct.

Does the 2021 rent freeze still matter?

Only for history. The 2021 guideline was 0%, so increases taking effect in 2021 were generally frozen for rent-controlled units.

Can I raise rent by more if I renovate?

Not automatically. For a rent-controlled unit, capital work can only raise rent above the guideline through an approved above-guideline increase application.

Does a new lease reset the 12 months?

No. Signing a new lease with the same tenant doesn't reset the 12-month rule or allow a larger increase.

Official sources

Last reviewed September 2026. General information, not legal advice.