Ontario Rent Increase 2026: Landlord Guide

Estimated reading time: 8 minutes

Key Takeaways

• Ontario’s rent increase guideline for 2026 is 2.5% — applies to units first occupied before November 15, 2018.
• 90 days written notice is required — not 60. This is the most common mistake Ontario landlords make.
• Notice must be served using Form N1 from the Landlord and Tenant Board. Email and informal letters are not valid.
• Units first occupied on or after November 15, 2018 are exempt from rent control — landlords can charge market rent between tenancies.
• Above-guideline increases require a formal LTB application and take many months due to current backlogs.

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Table of Contents

1. What is the Ontario rent increase guideline for 2026?
2. Which rental units are exempt from rent control?
3. How to give proper notice: Form N1 and 90 days
4. When can you raise rent above the guideline?
5. Rent increases and new tenancies in Ontario
6. How Propilot Helps
7. Related Reading
8. Frequently Asked Questions

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If you own rental property in Ontario, the ontario rent increase 2026 landlord rules require your attention before you send any notice to tenants. The provincial guideline is set annually by the Ministry of Municipal Affairs and Housing, and getting the process wrong — wrong form, wrong notice period, wrong timing — can invalidate your increase entirely. This guide covers everything you need to know: the 2026 guideline rate, which units it applies to, how to serve a valid notice, and when you can apply for more.

For national context, see Canada rental market statistics 2026 — Ontario’s rental market continues to see strong demand, making rent increases both more relevant and more scrutinized.

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What is the Ontario Rent Increase Guideline for 2026?

Ontario’s rent increase guideline for 2026 is 2.5%.

The guideline is set each year under the Residential Tenancies Act, 2006 (RTA) and published by the Ontario government before September 1 of the prior year. The guideline applies to rent increases that take effect in 2026 — it is the maximum a landlord can increase rent in a 12-month period without LTB approval.

Key rules at a glance:

Rule	Detail
2026 guideline	2.5%
Applies to	Units first occupied before November 15, 2018
Frequency	Maximum once every 12 months
Notice required	90 days written, on Form N1
Tenant dispute route	Application to the Landlord and Tenant Board

The guideline is a ceiling, not a floor. You can increase rent by less than 2.5% — or choose not to increase at all. If you miss a year, you cannot “bank” the unused guideline amount and apply it to a future increase.

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Which Rental Units Are Exempt from Rent Control?

Not all Ontario rental units are subject to the guideline. This distinction matters significantly.

Rent control applies to: units that were first occupied for residential purposes before November 15, 2018. This includes older apartments, houses, semi-detached units, condos, and basement suites that were rented out before that date.

Rent control does not apply to: units that were first occupied for residential purposes on or after November 15, 2018. This includes newly built condos, purpose-built rental apartments, basement suites added to a home after that date, and any unit that was first rented on or after November 15, 2018.

For exempt units, landlords are free to set rent at any market rate when a new tenant moves in. There is no cap on how much the rent can increase from one tenancy to the next.

Important nuance: even in exempt units, once a tenant is in place, the landlord must still follow notice rules before increasing rent during the tenancy. The exemption removes the guideline cap — it does not remove the notice requirement.

If you are not sure when your unit was first occupied, check the building permit, municipal records, or the original occupancy date on the title. When in doubt, assume the guideline applies.

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How to Give Proper Notice: Form N1 and 90 Days

This section is where most Ontario landlord rent increase errors happen. Two rules are non-negotiable:

1. Use Form N1

Ontario landlords must serve rent increase notices using Form N1 — Notice of Rent Increase, the official LTB form. You can download it from the Landlord and Tenant Board website.

An email, a text message, a letter on your own letterhead, or a verbal conversation is not a valid rent increase notice. If a tenant challenges an informally-delivered increase at the LTB, the increase will likely be found invalid. The LTB has dismissed rent increases served without Form N1 even when the amount was within the guideline.

2. Serve the notice at least 90 days before the increase takes effect

Ontario’s notice period for rent increases is 90 days — not 60. This is the most common mistake landlords make, particularly those who have previously rented in BC (where the notice period is 3 full rental months, calculated differently) or who find older online resources referencing the former 60-day requirement.

The 90-day clock starts the day after the notice is served. If your tenant pays rent on the first of each month and you want to increase rent on August 1, you must serve Form N1 no later than May 3 (90 days before August 1).

Practical tip: Add a buffer. Serve the notice 95-100 days in advance to account for delivery confirmation issues, especially if you are mailing the notice.

How to serve Form N1

Acceptable methods of service under the RTA include:

• In person — handing the form directly to the tenant
• Mail — by regular mail, adding 5 days to the date of service
• Email — only if the tenant has agreed in writing to receive notices by email
• Posted on door — only if the tenant cannot be found and landlord has tried in-person service

Keep a record of how and when you served the notice. If a tenant disputes the increase, you will need evidence of proper service.

One increase per 12 months

Even if you missed raising rent last year, you cannot issue two notices in the same calendar year. The rule is one increase per 12-month period per unit, measured from the last increase date (not the calendar year).

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When Can You Raise Rent Above the Guideline?

In most cases, you cannot exceed the 2.5% guideline for 2026. However, Ontario law allows landlords to apply to the LTB for an above-guideline increase (AGI) under specific circumstances.

Eligible grounds for an AGI

The RTA permits AGI applications on three grounds:

1. Extraordinary increases in municipal taxes or charges — if the municipal tax increase for the property is more than the guideline amount, and the increase is not due to a change in the classification or use of the property.

2. Significant capital expenditures under a work order — work required by a government authority, such as repairs mandated by municipal order or building code compliance work.

3. Eligible capital expenditures (capital work) — major improvements to the building or unit, such as roof replacement, window replacement, elevator upgrades, or HVAC systems. The work must meet specific eligibility criteria set by the LTB.

How the AGI process works

To apply for an AGI, you must file an application with the LTB (Form L5 — Application for an Above-Guideline Increase) and provide supporting documentation including invoices, permits, and tax records.

Important caveat on timing: the LTB is currently experiencing significant backlogs. AGI applications can take 12-24 months or longer to be heard. You cannot implement the above-guideline increase until the LTB issues an order approving it. Plan accordingly — if you have capital expenditures planned, file early.

Tenants have the right to receive notice of an AGI application and to participate in the hearing. The LTB weighs hardship to tenants when deciding AGI amounts.

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Rent Increases and New Tenancies in Ontario

When a tenant moves out of a rent-controlled unit, the guideline does not restrict what you charge the next tenant. You can set the new rent at any amount you choose based on market conditions — the guideline only governs increases to a sitting tenant’s rent.

This means landlords with older units effectively have two rent levels: the current in-tenancy rate (guideline-capped) and the market rate available when the unit turns over. In high-demand Toronto neighbourhoods, the gap between long-term tenant rents and current market rents can be significant — often 20-40% or more.

For units that were first occupied on or after November 15, 2018, there is no cap on rent at all — between tenancies or during tenancies — beyond the requirement to give proper notice before any mid-tenancy increase.

Tenant dispute rights: regardless of the unit type or guideline applicability, tenants can file an application at the LTB if they believe a rent increase was served improperly, exceeds the guideline for a controlled unit, or if the landlord failed to follow notice requirements. Keep documentation of every notice, service date, and rent payment record.

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How Propilot Helps

Tracking rent increase eligibility dates, preparing Form N1, and calculating 90-day notice windows across multiple units is tedious and error-prone when done manually. One missed deadline costs you a full year of rent growth.

Propilot is AI-powered property management software built for Canadian landlords. It tracks each unit’s last increase date, flags when your 90-day notice window opens, and helps you stay on top of compliance requirements — so you are not calculating dates on a calendar at 11pm.

For a broader look at platforms that handle N1 notice tracking and rent compliance automatically, see our best property management software Canada 2026 guide.

Propilot is built for intentional investors managing 3-20 units who want to stay compliant without a property manager taking 8-10% of every rent cheque. At a fraction of that cost, the platform handles tenant communications, screening, and compliance tracking — 24/7.

Start your free trial at propilot.tech

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Related Reading

• Canada Rental Market Statistics 2026 — national vacancy rates, average rents by city, and what the data means for landlords
• Toronto Rental Market Statistics 2026 — Toronto-specific vacancy, rent trends, and Ontario RTA context
• Best Property Management Software Canada 2026 — top platforms for Canadian landlords ranked by provincial compliance and AI features
• Best Landlord Software in Canada 2026 — tools built for BC, Ontario, and Alberta rental laws

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Frequently Asked Questions

What is the Ontario rent increase guideline for 2026?

Ontario’s rent increase guideline for 2026 is 2.5%. This applies to most rental units built before November 15, 2018. Landlords must give 90 days written notice on Form N1 before the increase takes effect, and can only raise rent once every 12 months.

How much notice does an Ontario landlord need to give for a rent increase?

Ontario landlords must give tenants 90 days written notice before a rent increase takes effect. This notice must be given using the LTB’s Form N1 (Notice of Rent Increase). Informal notice or email is not valid. Many landlords make the mistake of only giving 60 days — the Ontario requirement is 90 days.

Are new condos and apartments in Ontario exempt from rent control?

Yes. Rental units that were first occupied for residential purposes on or after November 15, 2018 are exempt from Ontario’s rent increase guideline. When a new tenant moves into these units, the landlord can set rent at any market rate. However, once a tenant is in place, the landlord still needs to provide proper notice before any increase.

Can an Ontario landlord raise rent above 2.5% in 2026?

In most cases, no. However, landlords can apply to the Ontario Landlord and Tenant Board for an above-guideline increase (AGI) in limited circumstances — including extraordinary increases in municipal taxes, significant capital expenditures required by a work order, or eligible capital work. AGI applications involve a formal LTB process and can take many months given current backlogs.

What is Form N1 in Ontario?

Form N1 is the Ontario Landlord and Tenant Board’s approved form for giving notice of a rent increase. Landlords must use this form when providing the 90-day notice required before raising rent. Using an informal notice, letter, or email instead of Form N1 is not valid and can leave the rent increase legally vulnerable to challenge.