Ontario Rent Increase Guideline 2026: What Landlords Need to Know

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 sets a rent increase guideline each year, limiting how much most landlords can raise rent for existing tenants. The guideline applies to most residential rental units first occupied before November 15, 2018. Units occupied for the first time after that date are not subject to guideline rent control.

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.

Above-guideline rent increases (AGIs) are available to landlords for eligible extraordinary cost increases — extraordinary operating cost increases for municipal taxes, insurance, or utilities, and capital expenditure increases for major renovation work that qualifies under the Act. AGI applications are made to the Landlord and Tenant Board and require documentation.

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.

Exempt units — those first occupied after November 15, 2018 — have no rent increase cap. Landlords of these units can charge any rent they negotiate with a new tenant and increase rent to any amount with 90 days notice. The 90-day notice requirement still applies even for exempt units.