Rent increases in Ontario are regulated by the Residential Tenancies Act (RTA). Landlords cannot raise rent arbitrarily — there are strict rules about how much, how often, and how much notice must be given.
The Rent Increase Guideline
Ontario sets an annual rent increase guideline — the maximum percentage a landlord can raise rent without LTB approval. The guideline is based on the Ontario Consumer Price Index:
- 2022: 1.2%
- 2023: 2.5%
- 2024: 2.5%
The guideline for each year is announced by the province in the fall of the preceding year.
Rent Control: Which Units Are Covered?
Rent control applies to most residential units first occupied for residential purposes before November 15, 2018. Units first occupied for residential use after that date are not subject to the guideline — landlords can increase rent by any amount for these units.
Notice Requirements
Landlords must provide 90 days' written notice of any rent increase using the N1 form. Rent can only be increased once every 12 months. A notice that doesn't comply with these requirements is void.
Above-Guideline Increases (AGI)
Landlords can apply to the LTB for an above-guideline increase if they've made significant capital expenditures, experienced extraordinary increases in municipal taxes, or have had large increases in utility costs. AGI applications are complex and heavily scrutinized.
What Tenants Can Do
If you receive a rent increase you believe is improper, you can file a T1 application with the LTB for a rent reduction, or challenge the N1 notice if it's procedurally deficient.