Annual Rent Increases: How to Do It Right and Avoid Costly Mistakes
Most Ontario landlords raise the rent once a year, and small mistakes can make the increase unenforceable or lead to a tenant claim. Here is how to do it properly, with the current guideline figures.
Key points
- The rent increase guideline is 2.1% for 2026 and 1.9% for 2027.
- At least 12 months must have passed since the last increase or the start of the tenancy.
- Give at least 90 days’ written notice on the LTB’s form.
- Units first occupied as a residence after November 15, 2018 are generally exempt from the guideline, but not from the 12-month and 90-day rules.
A rent increase looks simple: one form, one number. But the timing and the amount both have to be right, and a tenant can dispute an improper increase at the LTB within 12 months after it was first charged.
The guideline
| Year | Guideline |
|---|---|
| 2025 | 2.5% |
| 2026 | 2.1% |
| 2027 | 1.9% |
The guideline is the maximum you can raise most tenants’ rent in a year without LTB approval. It applies based on the year the increase takes effect. For example, $1,000 rent increased on June 1, 2027 can go up by 1.9%, to $1,019. To go higher, you would need an above-guideline increase order from the LTB.
The 12-month rule
You can only raise the rent if at least 12 months have passed since the last increase, or since the tenancy started. Raising it twice within 12 months isn’t allowed, even if each increase is under the guideline.
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Book a free 20-minute call →The 90-day notice
Give the tenant written notice at least 90 days before the increase takes effect, using the LTB’s rent increase form. Don’t count the day you serve it, and add 5 days if you mail it. A letter or email that isn’t on the proper form may not be valid notice. Keep proof of how and when you served it. See how to serve a notice.
Exempt units
New buildings, additions and most new basement or attic units first occupied as a residence after November 15, 2018 are generally exempt from the guideline. You still need 12 months between increases and 90 days’ written notice. Keep records that prove the exemption, such as permits and occupancy documents, and note it in the lease. See rent-control-exempt units.
Common mistakes
- Less than 90 days’ notice, often from forgetting mailing time.
- Raising the rent before 12 months have passed.
- Using the wrong year’s guideline.
- Assuming a unit is exempt without proof.
- No record of how the notice was served.
Frequently asked questions
What is the 2027 rent increase guideline in Ontario?
1.9%. It was 2.1% for 2026.
How much notice do I need to give?
At least 90 days’ written notice on the LTB’s rent increase form.
How often can I raise the rent?
Once every 12 months.
Does the guideline apply to my newer unit?
Units first occupied as a residence after November 15, 2018 are generally exempt from the guideline, but the 12-month and 90-day rules still apply.
How long does a tenant have to dispute an increase?
Within 12 months after the new amount was first charged.
About Bita Di Lisi
Bita is the lead paralegal at Stonegate Legal Services and is licensed by the Law Society of Ontario. She represents Ontario landlords at the Landlord and Tenant Board and teaches landlords and investors about notices, LTB timelines and the mistakes that cost months.
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