Ontario 2026 Rent Increase Guidelines: What Tenants and Landlords Need to Know

As 2026 begins, both tenants and landlords across Ontario are preparing for potential rent changes. Understanding the Ontario rent increase guidelines is essential to stay compliant, avoid disputes, and plan your budget effectively.

This guide breaks down the standard rent increase guideline, when landlords can apply for above-guideline increases, exempt units, and what you need to know as a tenant or landlord this year.

Standard Rent-Controlled Units: The 2.1% Guideline

Most residential rental units in Ontario are rent-controlled, meaning there’s a limit on how much landlords can increase rent each year. For 2026, the official guideline is 2.1%.

Landlords may raise rent by up to 2.1% without special approval, provided certain conditions are met.

Requirements for Rent Increases

1. 12-Month Rule
   Rent can only be increased once every 12 months. If a tenant has been in the unit less than a year, no increase is permitted.

2. 90-Day Written Notice
   Landlords must give tenants at least 90 days’ written notice using the approved form.

3. Calculation Example
   If your current rent is $1,500/month, a lawful 2.1% increase would be:

   $$1,500\times 0.021=31.50$$

   New rent: $1,531.50/month

Pro Tip: Always check your last rent increase date or tenancy start date to confirm your landlord can legally raise your rent.

Above-Guideline Increases (AGI)

Landlords may request an Above-Guideline Increase (AGI) from the Landlord and Tenant Board (LTB) in specific circumstances. This allows rent increases beyond the 2.1% limit—but it is not automatic and requires approval.

When AGIs Apply

• Major Capital Expenditures: Significant building repairs or upgrades, including new amenities like elevators or fitness facilities.

• Extraordinary Costs: Significant increases in municipal taxes, utilities, or required services.

How AGIs Work

• Landlords must submit an application to the LTB.

• They must justify the request and may attend a hearing.

• If approved, the LTB may allow up to 3% above the guideline, meaning a potential 5.1% increase in 2026.

Important: Tenants cannot be charged above the guideline without LTB approval.

Exempt Units: When the 2.1% Rule Doesn’t Apply

Some units in Ontario are exempt from rent control, giving landlords more flexibility when setting rent.

Exempt Units Include:

• Units first occupied for residential use after November 15, 2018

• New leases signed by tenants (rent is negotiable)

• Certain subsidized, co-op, social-housing, or non-standard units

Even exempt units must follow these rules:

• 12 months between rent increases

• 90-day written notice before raising rent

Pro Tip: Always read your lease carefully. Even if your unit is exempt, proper notice is legally required.

What Tenants Can Expect in 2026

For most tenants in rent-controlled units:

• Expect a 2.1% increase, assuming the 12-month rule and notice requirements are met.

• Only one increase per 12 months is permitted.

• Exempt units have no maximum increase, but proper notice is still mandatory.

Tenant Advice

1. Check your lease and last rent increase date.

2. Confirm your landlord provided 90-day written notice.

3. If facing an above-guideline increase, review the LTB decision or seek advice from a tenant advocacy group.

What Landlords Should Know

Landlords must comply with Ontario’s Residential Tenancies Act to avoid penalties and disputes:

• Standard rent-controlled units can only increase by 2.1% unless approved by the LTB.

• AGIs require formal applications and documentation of expenses.

• Exempt units must still respect the 12-month and 90-day notice rules.

Pro Tip: Keep detailed records of rent, improvements, and costs. This supports your AGI application and ensures compliance with the law.

Common Questions About 2026 Rent Increases

1. Can a landlord raise rent more than once per year?
No. Only one rent increase is permitted every 12 months.

2. What if the landlord didn’t give 90 days’ notice?
Any rent increase without proper notice is illegal. Tenants can file a complaint with the LTB.

3. Are new units capped at 2.1%?
No. Units first occupied after November 15, 2018, or new leases are not subject to the guideline; rent is negotiable.

4. How can tenants dispute an AGI?
Tenants can attend the LTB hearing and present evidence to challenge the increase.

At Ana Bastas Realty, we know informed tenants and landlords make smarter housing decisions. Whether you’re navigating rent increases, signing a new lease, or managing property in Toronto or the GTA, our team provides clarity, strategy, and first-class guidance.

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