Rent Increases in Ontario: What Landlords Can and Can’t Do
Rent increases are one of the most regulated parts of renting in Ontario. Get the timing, amount or notice wrong and you may have to pay the increase back. Here are the rules.
Key points
- Most units built before November 15, 2018 are limited to the annual rent increase guideline.
- You must give at least 90 days’ written notice on the Notice of Rent Increase form.
- You can only raise the rent once every 12 months for the same tenant.
- To go above the guideline, you must apply to the LTB.
The rules about when you can raise rent, by how much and how to give notice are strict, and getting them wrong can mean paying the increase back. Here is what Ontario landlords need to know.
The annual rent increase guideline
Each year Ontario sets a rent increase guideline: the most most landlords can raise rent without LTB approval. It applies to units first occupied for residential purposes before November 15, 2018. Units first occupied after that date are exempt from the guideline.
90 days’ written notice
- Use the Notice of Rent Increase form.
- Give it at least 90 days before the increase takes effect.
- State the new rent and the date it starts.
- Make sure the amount follows the guideline, if it applies.
A rent increase without proper notice is void.
Only once every 12 months
You can raise rent only once every 12 months for the same tenant, even if the increase is below the guideline. The 12 months run from the start of the tenancy or the last increase, whichever is later.
Planning a rent increase? We can check your notice before you send it.
Book a free 20-minute call →Above-guideline increases
If you have had major capital expenses or extraordinary increases in operating costs, you may be able to apply to the LTB for an above-guideline increase. It is an application, not something you can charge on your own, and approval isn’t guaranteed.
Mistakes that cost landlords
- Giving less than 90 days’ notice.
- Raising the rent twice within 12 months.
- Going above the guideline on a unit that isn’t exempt.
- Using the wrong form, or just sending a text or email.
- Not keeping a copy of the notice and proof of service.
Frequently asked questions
How much can I raise the rent in Ontario?
For most units first occupied before November 15, 2018, up to the annual guideline set by the province. Units first occupied after that date are exempt.
How much notice do I need to give for a rent increase?
At least 90 days’ written notice, using the Notice of Rent Increase form.
How often can I raise the rent?
Once every 12 months for the same tenant.
Can I raise the rent above the guideline?
Only with LTB approval through an above-guideline increase application, unless the unit is exempt.
What happens if I raise the rent without proper notice?
The increase is void, and the tenant may be able to recover what they overpaid.
About Robert Di Lisi
Robert is a paralegal licensed by the Law Society of Ontario and co-founder of Stonegate Legal Services, a landlord-only firm. He leads client intake and speaks at landlord seminars across the GTA. Like the rest of the team, he is a landlord himself.
Want your rent increase done right?
We act only for landlords. Flat-fee pricing, quoted up front, and every hearing handled online.
Book your free 20-minute call →or call 416-937-2766We represent landlords across Ontario, including Toronto, Mississauga, Brampton, Hamilton, Ottawa, Vaughan, Markham, Oakville and London.
