Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Yes, once every 12 months. An Ontario landlord must give at least 90 days’ written notice on the LTB form, and for most units the increase cannot exceed the guideline, which is 1.9% for 2027. Units first occupied after November 15, 2018 are exempt from the cap but still limited to one increase a year with 90 days’ notice.
This guide is for Ontario tenants who just got a rent increase notice, and for landlords planning increases for 2027. You will get the rules from the Residential Tenancies Act, 2006 (RTA), the 2027 guideline, worked dollar examples, the exceptions that allow more, and how to check a notice in a few minutes. It is general information as of November 2026, not legal advice.
Can a landlord raise the rent every year in Ontario?
Yes, once every 12 months, with proper notice. Three rules work together:
- The 12-month rule (section 119). At least 12 months must pass since your last increase, or since you moved in if there has been no increase yet.
- The 90-day notice rule (section 116). The landlord must give at least 90 days’ written notice, on the form the Landlord and Tenant Board (LTB) approves, stating the new rent. An increase without proper notice is void.
- The guideline cap (section 120). For most units, the increase cannot be more than the provincial guideline unless the LTB approves more or you agree to one of a few allowed extras.
So yes, a yearly increase is normal and legal. What is not allowed is raising it twice in 12 months, raising it without the 90-day written notice, or going over the guideline on a covered unit without a lawful reason.
What is the 2027 rent increase guideline in Ontario?
1.9 per cent. The Ontario government set it for increases that take effect between January 1 and December 31, 2027. Section 120 says the guideline is based on Ontario’s Consumer Price Index, averaged over the 12 months ending in May of the year before, and can never be more than 2.5 per cent.
| Year | Ontario rent increase guideline | Increase on $2,000 a month |
|---|---|---|
| 2021 | 0% (rent freeze set by law) | $0 |
| 2025 | 2.5% | $50 |
| 2026 | 2.1% | $42 |
| 2027 | 1.9% | $38 |
Source: Residential Tenancies Act, 2006, s. 120 (2021 freeze); Government of Ontario, Residential rent increases (2025 to 2027 guidelines). Dollar figures are simple examples.
The ministry’s own example: on $1,000 a month, a 1.9 per cent increase is $19, for new rent of $1,019. On a $2,500 Toronto condo, the 2027 maximum is $47.50 a month. My full post on the 2027 rent increase guideline has more examples.
Can a landlord increase rent in the middle of a lease?
The RTA’s timing rule is 12 months, not the end of the lease. In a typical one-year lease, the first lawful increase lines up with the end of the term anyway, because 12 months must pass from the day you moved in. After a fixed term ends, section 38 renews the tenancy month to month on the same terms, subject to lawful increases. You do not have to sign a new lease to stay.
The LTB also says that if you do sign a new lease, any rent change still has to follow the Act’s rent increase rules. A landlord cannot use a “renewal” to skip the guideline on a covered unit.
If your lease is longer than a year, or says the rent is fixed for the whole term, read it closely and get advice before accepting a mid-term increase.
Which units are exempt from the rent increase guideline?
Under section 6.1 of the RTA, the guideline does not apply to a unit in a building, or an addition, where no part was occupied for residential purposes on or before November 15, 2018. That covers most condos and purpose-built rentals first lived in after that date.
Some newer second units in houses are also exempt: generally a self-contained unit with its own kitchen and bathroom, created after November 15, 2018, in a house that had no more than two units, where the owner lived in the house at the time or the unit was built in previously unfinished space.
Exempt does not mean anything goes. The LTB’s tenant brochure says exempt units can still be increased only once a year, but with no limit on the amount. The 12-month rule and 90 days’ written notice still apply, and landlords of exempt units use Form N2 instead of N1. Social housing, long-term care and commercial spaces follow other rules.
Not sure which you have? My guide is my rental rent-controlled explains how to check the first-occupancy date.
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When can a landlord raise rent above the guideline?
Only in these situations:
The LTB approves an above-guideline increase (AGI)
Under section 126, a landlord can apply for more than the guideline because of an extraordinary jump in municipal taxes, eligible capital work (like a new roof, boiler or elevator), or new or higher outside security costs. The part tied to capital work and security is capped at 3 per cent above the guideline in a year, and can be spread over up to three years. While an application is pending, the LTB’s N1 instructions say a tenant can choose to pay either the new amount or the current rent plus the guideline. My guide to above-guideline increases walks through how tenants can respond.
You sign an agreement for capital work or a new service
Section 121 lets a landlord and tenant agree to an increase above the guideline in exchange for capital work or a new or added service. It must be on the LTB’s Form N10, cannot be more than the guideline plus 3 per cent, and you can cancel it in writing within five days of signing.
You add parking or a prescribed service
Under section 123, if you agree to add a parking space or another prescribed service, the landlord can raise the rent for it at any time, outside the 12-month and 90-day rules. If the landlord stops providing it, section 125 requires the rent to go back down.
Section 124 says any of these agreements is void if the tenant was pressured into it or misled.
What happens to rent between tenants?
When a unit turns over to a new tenant, the guideline does not apply to the starting rent. The Ontario government’s rent increase page says the landlord and new tenant can agree on the rent at turnover. After that, the new tenant’s rent is protected by the guideline going forward, if the unit is covered.
For landlords, this means the guideline only limits increases for a sitting tenant. It is one reason long-term tenants in older buildings often pay well under current market rent. If you are setting a new rent, my guide on how much rent you can charge in Toronto covers pricing.
How do I check if my rent increase is legal?
Use this five-step check:
- Is it in writing, on the LTB form? Most units use Form N1. Exempt units use N2. Agreed increases for capital work use N10.
- Were you given at least 90 days? Count from when you received it. For an increase starting February 1, 2027, the notice should have been given by November 3, 2026. Allow extra days if it was mailed.
- Has it been 12 months? Since your last increase, or since you moved in.
- Is it within 1.9 per cent? Unless the unit is exempt, the LTB approved an AGI, or you signed a valid agreement.
- Was it served properly? The N1 instructions say it can be handed to you, left in your mailbox or under the door, or mailed, but not just posted on your door.
If something is off, my post on checking for an illegal rent increase explains your options.
Time limits cut both ways. Under section 136, rent you have paid for a year without challenging it is generally deemed lawful. The Ontario government says you can dispute an increase at the LTB within 12 months of when the amount was first charged. If you think an increase is wrong, act early rather than paying it for a year and hoping to recover it later.
What can a tenant do about an illegal rent increase?
Raise it with your landlord in writing first. Many errors are honest ones, like a wrong date or a miscounted 90 days. Section 116 says an increase without proper notice is void, and the landlord must give a new notice before taking it.
If that does not fix it, you can apply to the LTB for an order that the landlord return money collected illegally, under section 135, within the time limit. For help with your facts, contact the LTB, a community legal clinic or a licensed paralegal. Landlords who are unsure whether a unit is exempt can also call the LTB.
For landlords I advise, the best yearly increase is the one that is on time, on the right form and easy to understand. A small, predictable 1.9 per cent increase keeps a good tenant far longer than an aggressive one, and vacancy costs more than most owners expect. For tenants, the guideline gives real certainty in 2027. Put your move-in date and last increase date in your calendar so you know exactly when the next lawful increase can start.
What to do next
- Find your move-in date and the date of your last rent increase.
- Check whether your building or unit was first occupied after November 15, 2018.
- Compare any notice against the five-step check above.
- Landlords: diarize 90 days plus mailing time before each anniversary, and use the correct LTB form.
- If there is a dispute, contact the LTB, a community legal clinic or a licensed paralegal within 12 months.
Need help with this? Talk to me.
I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].
Frequently asked questions
Can a landlord increase rent every year in Ontario?
Yes, once every 12 months. Under Ontario’s Residential Tenancies Act, at least 12 months must pass since the last increase or move-in, the landlord must give at least 90 days’ written notice on the LTB form, and for most units the increase cannot exceed the guideline, which is 1.9 per cent for 2027. Units first occupied after November 15, 2018 have no cap.
Can a landlord increase rent mid lease in Ontario?
Generally not before 12 months have passed. The Residential Tenancies Act’s timing rule is 12 months from move-in or the last increase, plus 90 days’ written notice, so in a typical one-year lease the first increase lines up with the lease end. If your lease is longer or fixes the rent for the term, read it closely and get advice.
What is the maximum rent increase in Ontario for 2027?
The 2027 rent increase guideline is 1.9 per cent for increases taking effect from January 1 to December 31, 2027. On $2,500 a month, that is $47.50. It applies to most rental units first occupied on or before November 15, 2018. A landlord can go higher only with LTB approval or certain agreements with the tenant.
How much notice does a landlord need to give for a rent increase in Ontario?
At least 90 days’ written notice, on the Landlord and Tenant Board’s approved form, usually Form N1, or N2 for exempt units. Section 116 of the Residential Tenancies Act makes an increase void if proper notice was not given, and the landlord must serve a new notice before taking it.
Is my condo rent-controlled in Ontario?
It depends when the building was first lived in. If no part of the building was occupied for residential purposes on or before November 15, 2018, the 2027 guideline of 1.9 per cent does not apply. Increases are still limited to once every 12 months with 90 days’ written notice. Older condos are generally covered by the guideline.
Can my landlord charge more rent for parking in Ontario?
Yes, if you agree to add a parking space. Section 123 of the Residential Tenancies Act lets a landlord increase rent at any time when the tenant agrees to add parking or another prescribed service, outside the 12-month and 90-day rules. If the landlord later stops providing it, section 125 requires the rent to decrease.
Can a landlord raise rent above 1.9 per cent in 2027?
Only in limited cases. The LTB can approve an above-guideline increase for extraordinary municipal tax increases, eligible capital work or security costs, with capital and security capped at 3 per cent above the guideline a year. A tenant can also sign an N10 agreement for capital work or a new service, capped at guideline plus 3 per cent.
How long do I have to dispute a rent increase in Ontario?
About 12 months. The Ontario government says you can dispute an increase at the Landlord and Tenant Board within 12 months of when the amount was first charged, and section 136 of the Residential Tenancies Act generally treats rent unchallenged for a year as lawful. Contact the LTB, a community legal clinic or a licensed paralegal early.
Does the rent increase guideline apply to a new tenant?
No, not to the starting rent. When a unit turns over, the Ontario government says the landlord and the new tenant can agree on the rent. After that, the new tenant’s future increases are limited to the guideline if the unit is covered, with the 12-month rule and 90 days’ notice applying.
Sources
- Residential rent increases (Government of Ontario)
- Residential Tenancies Act, 2006, S.O. 2006, c. 17 (Ontario e-Laws)
- Renting in Ontario: Your rights (ontario.ca)
- LTB Brochure: Information for New Tenants
- LTB Brochure: Information about Applications for a Rent Increase Above the Guideline
- LTB Form N1 Notice of Rent Increase: Instructions
- LTB Brochure: How a Landlord Can End a Tenancy
Related reading
- Can My Landlord Enter Without Notice in Ontario?
- Can a Landlord Evict You Without Going to the LTB in Ontario?
- Can a Landlord Put Security Cameras in or Outside a Rental in Ontario?
- Can My Landlord Keep My Deposit or Charge for Cleaning in Ontario?
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume.
Reach me at [email protected] or 833-330-1925, or book a call.