Planning a 2026 Ontario Rent Increase: Timing and Exceptions

Ontario's 2026 rent increase guideline affects every landlord with tenants on existing leases — understanding how it applies protects you from legal challenges.

Property Management in Ontario

Ontario's 2026 rent increase guideline affects every landlord with tenants on existing leases — understanding how it applies protects you from legal challenges.

Ontario’s Residential Tenancies Act limits increases for most existing residential tenancies through an annual guideline. Many newer buildings, additions and qualifying new units first occupied for residential purposes after November 15, 2018 are exempt from the guideline. The statutory conditions matter; a renovation date alone does not establish an exemption. Check Ontario’s rent-increase guidance for the applicable rules.

Key Responsibilities and Best Practices

The 2026 rent increase guideline is set by the Ontario government based on the Ontario Consumer Price Index. Landlords wishing to increase rent for eligible tenants must give proper notice using the prescribed form (Form N1 — Notice of Rent Increase) at least 90 days before the effective date.

An above-guideline increase requires an eligible ground and an application to the Landlord and Tenant Board. Eligible grounds include extraordinary municipal taxes and charges, qualifying capital expenditures, and certain security-service costs. Not every increase in operating expenses qualifies. See the LTB’s current L5 instructions for the conditions and application requirements.

How D&D Property Management Helps

The 12-month rule means landlords can only increase rent once per 12-month period, regardless of the guideline. If a rent increase is given and then later found to be above the allowable amount, the increase can be challenged at the LTB and the landlord may be ordered to refund the overpayment.

For a unit that is exempt from the guideline, proper written notice and the applicable waiting period between increases still matter. Confirm the exemption and use the appropriate notice form. The LTB’s guide to the Residential Tenancies Act explains the notice and timing rules.

Devon Moore, Operations Lead Co-Founder & Operations Lead — D&D Property Management

Devon Moore is the co-founder and Operations Lead at D&D Property Management, managing rental properties across Kitchener-Waterloo, Cambridge, Guelph and Waterloo Region.