The Province has set the 2027 Rent Increase Guideline at 1.9%. Source: https://www.ontario.ca/page/residential-rent-increases
Landlords must give their tenants 90 days written notice before the rent increase takes effect and use the prescribed form – N1. The form and instructions may be downloaded from https://tribunalsontario.ca/ltb/forms/#landlord-forms
Landlords are reminded that rent increases may take effect on January 1, 2027 provided there has not been an increase in the last 12 months or the tenant not moved in the last 12 months.
Under normal circumstances, landlords may increase the rent once every 12 months by the guideline amount only for a sitting tenant without seeking approval from the Landlord and Tenant Board. Landlords must provide 90 days written notice using the prescribed Landlord and Tenant Board Form N1. Following amendments to the Residential Tenancies Act, 2006 which became effective on April 20, 2017, rental units which were previously exempt from the guideline are now subject to it.
How the Annual Guideline is calculated:
The annual rent increase guideline is determined according to section 120 (2) of the Residential Tenancies Act, 2006 which averages the monthly Ontario Consumer Price Index over a twelve month period that ends at the end of May of the previous calendar year.
If the calculation for the annual guideline amount exceeds 2.5% in any given year it will be reduced to 2.5%. The RTA was amended in 2012 when a maximum cap of 2.5% was implemented for all guideline increases.
If an increase of more than 2.5% is required, the landlord must follow the process to seek approval for an Above Guideline Increase.
Rent Increase Guidelines
| YEAR | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Annual Guideline | 2.1% | 2.5% | 2.5% | 2.5% | 1.2% | 0% | 2.2% | 1.8% | 1.8% | 1.5% | 2.0% | 1.6% | 0.8% | 2.5% |
Recent Increase Exemptions
Section 6.1 of the RTA provides details of the amendment for the rent control exemption which refers to two types of rental units: 1) A building, mobile home park or land leased community, no part of which was occupied for residential purposes on or before November 15, 2018; and 2) Rental units located in detached, semi-detached and row houses which meet and are subject to specific requirements.
The exemption for new rental units located in detached houses, semi-detached houses or row houses, not occupied for residential purposes on or before Nov. 15, 2018, are subject to the following:
- the detached, semi-detached or row house contained not more than two residential units on or any time before November 15, 2018;
- the residential unit has its own bathroom and kitchen facilities; has one or more exterior and interior entrances; at each entrance the unit has a door equipped so it can be secured from the inside of the unit; and at least one door is capable of being locked from the outside;
- the owner, or one of the owners, lived in another residential unit in the house; or the house was unfinished space immediately before the rental unit became a residential unit.