Ontario rent increase guideline 2027: 1.9%, plus a calculator

Ontario rent increase calculator

The guideline that applies is the one for the calendar year the increase takes effect, not the year you give the notice: a notice given in October 2026 for a February 2027 increase uses 2027's 1.9%. The earliest date is the later of 12 months after the last increase (or the day the tenancy began) and 90 days after the notice (95 if you mail it).

Ontario's rent increase guideline by year

The guideline is set each year from Ontario's inflation rate (the Consumer Price Index averaged over the 12 months to the end of May), and by law it can never be more than 2.5% (Residential Tenancies Act, section 120). The government announces it by August 31 for the next year.

The rules for every increase

1. Once every 12 months. Count from the last increase, or from the day this tenant first rented the unit (section 119).
2. At least 90 days' written notice, on the Landlord and Tenant Board's form, showing the new rent (section 116). Hand it to the tenant or an adult in the unit, leave it in the mailbox or under the door, or courier or mail it; you can't just post it on the door. A mailed notice counts as given 5 days after you mail it (section 191).
3. No more than the guideline for a rent-controlled unit, unless the tenant signs an N10 agreement or the LTB approves more (section 120).
4. An increase without proper notice is void: you have to give a new notice and wait another 90 days (section 116(4)). An increase the tenant doesn't challenge within one year is treated as lawful (section 136).

A worked example

A tenant pays $2,000 a month, and the last increase was on February 1, 2026. The 12 months are up on February 1, 2027, so 2027's guideline applies: 1.9%, or $2,038 a month (+$38 a month, $456 a year). To start it on February 1, the notice has to reach the tenant by November 3, 2026, or be mailed by October 29. Give it later and the increase starts 90 days after the notice instead; the 12-month clock for the next one then starts from that later date.

Which units are exempt: the November 15, 2018 rule

The guideline doesn't apply to a unit in a building, or an addition, where no part was lived in before November 15, 2018 (section 6.1(2)). A new second unit in a house can be exempt too: a basement or other suite with its own kitchen, bathroom and lockable entrance, created after that date, where the owner lived in the house at the time or the suite was built in unfinished space (section 6.1(3)).

For these units you can raise the rent by any amount, but the 12-month rule and the 90-day written notice still apply. A tenancy agreed on or before November 15, 2018 stays rent-controlled until that tenant leaves (section 6.1(4)). Notices are on the Board's form: the N1, or the N2 (Unit Partially Exempt) for a unit the guideline doesn't apply to; the LTB (1-888-332-3234) can tell you which fits your unit.

Raising the rent above the guideline

• An agreement with the tenant (N10), in exchange for capital work or a new or extra service: up to the guideline plus 3%. The tenant can cancel it in writing within 5 days, it can't start sooner than 6 days after signing, and no N1 is needed (section 121).
• Parking or an added service the tenant agrees to (like a parking space): the rent can go up by the prescribed amount at any time, outside the 12-month rule (section 123).
• An above-guideline increase from the LTB, for an extraordinary jump in property taxes, major capital work, or outside security services (section 126). The part for capital work and security is capped at 3% a year, with any rest spread over up to two more years. You still give 90 days' notice.
• A new tenant. When a unit is re-rented, you can set any rent for the new tenant (section 113). That's the moment rent-controlled units catch up to the market.

Re-renting? Price it right and list it on MLS®

Between tenants is the only time a rent-controlled unit's rent resets, so the new rent will have to last. Listing on the MLS® System and realtor.ca puts the unit in front of the most tenants and their agents, which helps you get a market rent. We list rentals for a flat fee from $69.99 a month, and you deal with tenants directly. See how to rent out your house in Ontario and listing a rental on MLS®. Rules here are a summary of the Residential Tenancies Act, not legal advice.

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