Property Management in Ontario
Ontario's Residential Tenancies Act limits rent increases for most existing tenancies to the province's annual Rent Increase Guideline — a percentage set each year by the Ministry of Municipal Affairs and Housing based on inflation.
The 2026 guideline and recent years' guidelines reflect Ontario's economic conditions. Landlords should verify the current year's guideline with the Ministry before issuing any rent increase notice — the number changes annually.
Key Responsibilities and Best Practices
Proper notice of rent increase requires 90 days' written notice to the tenant. The notice must use the prescribed form (N1 — Notice of Rent Increase) and state the new rent amount and effective date.
Above-guideline increases (AGIs) are available to landlords who have incurred extraordinary increases in operating costs, capital expenditure on eligible items, or municipal property tax increases. AGI applications require LTB approval.
How D&D Property Management Helps
Exempt units — those first occupied for residential purposes after November 15, 2018 — are not subject to the rent increase guideline for the duration of that tenancy. The landlord may increase rent by any amount with proper notice.
Rent increase guidelines apply to the unit, not the tenant. When a tenancy ends and a new tenancy begins, the landlord may set the new rent at any amount for the incoming tenant. This is 'vacancy decontrol.'
Documentation of all rent increases — notices issued, effective dates, and new amounts — should be maintained throughout the tenancy. Accurate records prevent disputes about agreed rent amounts and establish compliance with notice requirements.