Ontario Rent Increases: Rules, Notice and Limits
Ontario limits how much and how often most landlords can raise rent, and requires written notice before any increase takes effect. Here is how the rules generally work.
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The annual rent increase guideline
Under the Residential Tenancies Act, 2006 (RTA), the Ontario government publishes a rent increase guideline every year. This guideline is a percentage that represents the maximum amount most landlords can raise rent for existing tenants in a 12-month period without seeking special permission from the Landlord and Tenant Board (LTB). The percentage is calculated using a formula tied to the Ontario Consumer Price Index and is announced publicly ahead of the calendar year it applies to.
Because the guideline changes every year, this guide does not quote a specific number — you should always check the current year's published guideline directly from the Government of Ontario or the LTB before relying on a figure. What stays consistent from year to year is the general framework: the guideline generally applies to most private residential rental units covered by the RTA, and a landlord who wants to increase rent beyond it generally needs LTB approval through an above-guideline increase application, discussed below.
Key point
The guideline percentage is not automatic — a landlord must still give proper written notice for any increase to take effect, even one that falls within the guideline.
The 90-day written notice requirement
Regardless of the amount, a landlord must generally give a tenant written notice of a rent increase at least 90 days before the increase is due to take effect. This notice is typically given using the LTB's standard forms: Form N1 for a notice within the guideline, or Form N2 for a notice of a rent increase that requires LTB approval (such as an above-guideline increase). The notice must state the tenant's current rent, the new proposed rent, and the date the new rent starts.
If the notice does not meet the 90-day minimum, does not use the correct form or information, or is otherwise deficient, the increase generally does not take legal effect on the date the landlord intended, and the tenant may be able to continue paying the old rent until a proper notice is served and the notice period runs.
How often rent can be increased
In most cases, a landlord cannot increase rent for the same tenant more than once every 12 months. This 12-month rule is measured from the date of the last rent increase (or from the start of the tenancy if there has not yet been one), not the calendar year. Even if a landlord is entitled to raise rent by the guideline amount, they generally cannot do so again until a full 12 months have passed since the previous increase took effect.
Above-guideline increases (AGIs)
A landlord who believes they need to raise rent above the annual guideline may apply to the LTB for an above-guideline increase (AGI). The RTA sets out limited grounds for an AGI application, which generally include significant increases in municipal taxes and utility charges, or the cost of certain capital expenditures (major repairs or replacements, such as a new roof or elevator system) and, in some circumstances, costs related to security services. An AGI application is reviewed by the LTB at a hearing, and tenants generally have an opportunity to respond and raise issues such as outstanding maintenance concerns. The LTB may approve, reduce, or refuse an above-guideline increase, and any approved amount is usually phased in over multiple years rather than applied all at once.
Exemptions from the guideline
Not every rental unit in Ontario is subject to the annual guideline. Common categories of exemption generally include certain new residential units first occupied for residential purposes after a specific date set out in the RTA, some social and supportive housing, and certain units where rent is otherwise regulated. Rules around exemptions are specific and have changed over time, so a landlord or tenant unsure whether a particular unit is exempt should confirm directly with the LTB rather than assume.
Key point
An exemption from the guideline does not mean a landlord can increase rent without notice or as often as they like — the 90-day written notice and 12-month timing rules generally still need to be considered, and any dispute can still be raised with the LTB.
If a rent increase notice looks improper
A tenant who receives a rent increase notice that seems too high, too frequent, or improperly documented has options. They can review the notice against the current guideline and the 90-day and 12-month rules described above, ask the landlord for clarification in writing, and, if needed, contact the LTB for information about whether the notice appears to comply with the RTA. A tenant is generally not required to simply accept and pay an increase that does not meet the legal requirements, but they should also avoid unilaterally deciding to pay a reduced amount without first understanding their situation, since unresolved rent disputes can also affect a tenancy. Keeping copies of all notices and rent receipts is good practice for either side.
This article provides general information about Ontario landlord and tenant law. It is not legal advice. For advice about a specific situation, consult a licensed paralegal or lawyer, or contact the Landlord and Tenant Board.
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Reviewed by Ryan J. Manilla, BA, JD
Legal Reviewer · Landlord Tenant Ontario