Ontario rent-increase rules, explained

The guideline

The Ontario rent-increase guideline is the ordinary cap on how much a landlord can raise the rent for the same tenant in a year, for most private residential units covered by the Residential Tenancies Act, 2006. Ontario has set the guideline at 2.1% for 2026 and 1.9% for 2027. The percentage that applies is the one for the year the increase takes effect.

The 12-month rule

Under s. 119 of the Act, at least 12 months must ordinarily have elapsed since the tenant's last rent increase before another increase can take effect for the same tenant. If there has been no prior increase, the 12 months is measured from the date the unit was first rented to that tenant.

The 90-day notice rule

Section 116 requires at least 90 days' written notice of a rent increase, on a form approved by the LTB. A rent increase given without the required notice is void, and a new, correct notice is required before the increase can take effect. The 12-month rule and the 90-day notice rule are separate, and both must be met.

Controlled vs post-15 November 2018 units

The ordinary guideline applies to most private residential units covered by the RTA. Units first occupied for residential purposes after 15 November 2018 may be exempt from the ordinary guideline. The exemption depends on the facts about the unit; the landlord may need to show evidence of first occupancy, and the LTB decides disputes. Guideline-exempt units still generally follow the once-per-12-months rule and the 90-day written-notice rule.

N1 vs N2 at a high level

Form N1 is the ordinary notice for a guideline-controlled unit. Form N2 is used where the unit is partially exempt from the Act's rent-increase rules - for example, non-profit housing co-operatives and certain other units listed in s. 6. Confirm the form matches the unit's status before serving. See the Tribunals Ontario LTB forms page for the current versions.

What this guide does not cover

Above-guideline increases (AGIs) under s. 126, N10 agreements to change rent, care-home service charges, social housing turnover rules, and the July 2026 seasonal air-conditioning increase are separate regimes with their own rules and are not covered here. Follow the official sources below for those.