Every year, the Ontario government sets a rent increase guideline: the maximum amount most landlords can raise rent without approval from the Landlord and Tenant Board (LTB). With the 2027 figure now announced, this is a good time to plan ahead, whether you are a landlord or a tenant.
The numbers
- 2026 guideline: 2.1%, for increases taking effect between January 1 and December 31, 2026.
- 2027 guideline: 1.9%, for increases taking effect in 2027.
For example, on a monthly rent of $2,000, a 1.9% increase is $38, which brings the rent to $2,038. At 2.1% it would be $42, for a new rent of $2,042. The guideline that applies is the one in force on the date the increase takes effect.
The basic rules
- Rent can generally be increased only once every 12 months, counted from the last increase or the start of the tenancy.
- The landlord must give at least 90 days’ written notice, on the proper LTB form.
- For most units, the increase cannot be more than the guideline.
- A unit that was not occupied for residential purposes on or before November 15, 2018 may be exempt from the guideline. The 12-month and 90-day rules and the proper form still apply.
- Some types of housing, including certain non-profit and public housing, are not covered by all of the rent rules.
- A landlord who needs more than the guideline can apply to the LTB for an above-guideline increase, but must meet specific requirements.
Timing an increase for January 2027
Because notice must be given at least 90 days ahead, an increase for January 1, 2027 needs to be served by early October 2026. Count the days carefully. A late or incorrect notice can delay the increase or make it invalid. A good habit is to set a calendar reminder about four months before each tenant’s increase date.
For tenants
Check that the notice is on the correct form, shows the right date and does not exceed the guideline. If something looks wrong, ask your landlord to explain, and contact the LTB for information. Do not ignore a notice. Keep a copy.
For landlords
Regular, modest increases are easier on tenants than large catch-ups, and keeping a good tenant is usually cheaper than a vacancy. Communicate early, document everything and never agree changes informally. We prepare and track rent increase notices for the properties we manage.
For more of the basics, see our Ontario landlord guide.
This article is general information, not legal advice. Rules can change, so confirm the details with the Landlord and Tenant Board or Ontario.ca.
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