Managing your rental
How much an Ontario landlord can raise the rent in 2026 and 2027, the 90-day notice and 12-month rules, which units are exempt, and above-guideline increases.
By the Tenant.ca teamUpdated 3 min read
Work out the most a rent can rise under the provincial guideline for the year the increase takes effect, and the latest day to give the 90-day notice.
The guideline is the one for the calendar year the increase takes effect, from the province’s table (2023: 2.5%, 2024: 2.5%, 2025: 2.5%, 2026: 2.1%, 2027: 1.9%). The notice date is 90 days before the effective date (section 116). An increase also needs at least 12 months since the last one or since the tenancy began (section 119). Units first occupied for residential purposes after November 15, 2018 are exempt from the guideline (section 6.1). An increase above the guideline needs the Board’s approval.
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For most occupied rental units, the province sets a yearly cap on increases, the rent increase guideline. The province's table puts it at 2.5% for 2023, 2024 and 2025, 2.1% for 2026 and 1.9% for 2027. The guideline that applies is the one for the year the increase takes effect, so an increase starting on or after January 1, 2027 is capped at 1.9%.
This page is general information, not legal advice. It reflects the Residential Tenancies Act, the province's pages and the Landlord and Tenant Board's forms as checked on October 19, 2026. If a tenancy is already in dispute, speak to a lawyer or licensed paralegal.
Two rules apply to every increase, exempt unit or not:
Section 6.1 of the Act exempts units occupied for the first time for residential purposes after November 15, 2018, from the guideline, which the province describes as including new buildings, additions to existing buildings and most new basement apartments. The 90-day notice and the 12-month rule still apply to them.
The province also lists units where a tenancy turns over and the landlord and the new tenant agree on the rent, community housing, long-term care homes and commercial properties. Setting the rent for a new tenant is not an increase: the guideline does not limit the rent you agree with them.
Section 126 lets a landlord apply to the Landlord and Tenant Board for an increase above the guideline in three cases: an extraordinary increase in municipal taxes and charges, eligible capital expenditures on the building or units, and operating costs for security services provided by people the landlord does not employ. The Board decides the amount; nothing above the guideline can be charged on the landlord's say-so.
A last month's rent deposit can be no more than one month's rent (section 106). When the rent rises, the landlord may use the yearly interest on the deposit, paid at the guideline rate, to bring the deposit up to the new maximum, instead of paying that part of the interest to the tenant. The deposit interest calculator in our landlord responsibilities guide works it out.
For the owners we manage for, we track each tenancy's last increase, prepare the notice on the Board's form for your approval in time for the 90-day window, and update the rent record in your owner portal from the effective date. You decide whether and how much to increase; we make sure the notice is right.
Management is $98 per month plus HST for a condo or apartment and $148 per month plus HST for a house, and the first 60 days of the agreement are a trial period.
