Ontario Rent Increase Guide

The Annual Rent Increase Guideline

Each year, the Ontario government publishes a rent increase guideline—the maximum percentage landlords can raise rent without LTB approval. For most residential units covered by the Residential Tenancies Act:

The guideline is based on the Ontario Consumer Price Index and is capped at 2.5% even when inflation is higher. This protects tenants while allowing landlords some room for increases.

When You Can Increase Rent

You can increase rent only when:

• 12 months have passed since the last rent increase or since the tenancy began
• 90 days written notice is given using the proper N1 form
• The increase takes effect on the first day of a rental period (usually the 1st of the month)

The N1 Notice

The N1 (Notice of Rent Increase) is the official form you must use to notify tenants of a rent increase. It must include:

• The tenant's full name and rental unit address
• The current rent amount
• The new rent amount
• The effective date of the increase
• Your signature

Use our N1 Date Calculator →

Exemptions

Some units are exempt from rent control and the guideline doesn't apply:

• Units first occupied after November 15, 2018
• Community housing and non-profit housing
• Commercial units
• Units in buildings with fewer than 3 residential units where the landlord lives in one

If your unit is exempt, you can increase rent by any amount—but you still need to provide 90 days notice using the N1 or N2 form.

Above-Guideline Increases

If you need to increase rent by more than the guideline (for capital repairs, operating cost increases, or security services), you must apply to the LTB for an Above Guideline Increase (AGI). This is a formal application process with hearings.

Calculating Your New Rent

The calculation is straightforward: multiply your current rent by the guideline percentage and add it to the current rent.

Use our Rent Increase Calculator →

Common Mistakes

Related Resources