Ontario Rent Increase Guideline for 2026 | Own In Toronto
← All Blog Posts
Landlords & Tenants

Rent Guideline
Rate 2026

Ontario's maximum allowable rent increase for 2026 โ€” what it covers, which units are exempt, and what landlords must do before raising rent.

๐Ÿ’ก 2026 guideline: 2.1%  ยท  Units first occupied after Nov 15, 2018 are exempt from rent control  ยท  90 days' written notice required on proper provincial forms
01

The 2026 Rent Increase Guideline

Each year, the Province of Ontario sets a maximum amount that a landlord can raise the monthly rent for most existing tenants. This is called the rent increase guideline.

2.1%
Ontario Rent Increase Guideline โ€” 2026
The maximum a landlord can raise rent for eligible tenants without requiring approval from the Landlord and Tenant Board.

This guideline applies to most existing rental units in Ontario. A landlord who stays at or below this percentage can proceed without a formal LTB hearing. A landlord who wants to raise rent above the guideline โ€” for example, due to significant capital expenditure or a spike in operating costs โ€” must apply to the LTB for approval.

Who this covers: The guideline applies to most private residential rental units including apartments, houses, and condos โ€” with one significant exception covered in the next section.
02

New Buildings Are Exempt from Rent Control

Since November 15, 2018, Ontario's rent control rules have not applied to any unit that was first occupied for residential purposes after that date. This exemption applies regardless of the building type โ€” new condo towers, purpose-built rental buildings, and new additions to existing buildings all fall under this rule.

For landlords of newer units, there is no legislated cap on annual rent increases. A landlord can raise the rent by any amount, provided the proper notice requirements are followed.

Tenants in New Buildings โ€” Know Your Status
If your unit was first occupied after November 15, 2018, the 2.1% guideline does not protect you from larger increases. Check your lease or confirm the building's first-occupancy date if you're unsure โ€” this detail has major financial implications over time.
What counts as "first occupied": The date refers to when the unit was first lived in by any tenant โ€” not the construction completion date or when you personally moved in. A unit built in 2019 but first rented in 2020 is still exempt, regardless of who currently lives there.
03

Notice Rules โ€” What Landlords Must Do

Regardless of whether the unit is subject to rent control or exempt, the same procedural requirements apply to every rent increase in Ontario. These are not optional โ€” failure to follow them can render the notice invalid and the increase unenforceable.

๐Ÿ“…
90 Days' Written Notice Required
The landlord must give the tenant at least 90 days' written notice before any rent increase takes effect. Notices that fall short of this window โ€” even by one day โ€” are not valid.
๐Ÿ”
Only Once Per 12 Months
Rent can only be raised once every 12 months for the same tenant. A landlord cannot issue multiple increases within a year, regardless of the amount.
๐Ÿ“‹
Must Use the Proper Provincial Form
All rent increase notices must be issued using the official provincial form (Form N1). An improperly served notice โ€” including one delivered on the wrong form or in the wrong format โ€” can be deemed invalid by the Landlord and Tenant Board.
Own In Toronto

Questions About How the Guideline Applies to You?

Whether you're a landlord navigating a rent increase or a tenant trying to understand your rights, I'm happy to point you in the right direction.

Get in Touch →