How Much Can My Landlord Raise Rent in Ontario?
Understanding rent increase caps, notice periods, and your right to challenge illegal hikes.
Quick Answer
Rent increases are capped at the annual Ontario Rent Increase Guideline.
For 2024, the guideline is 2.5%. For 2025, it is 2.5%. For 2026, it is 2.1%. Your landlord cannot raise rent above this guideline unless they receive LTB approval for major capital improvements.
What the Law Says
The Residential Tenancies Act (RTA s.116) governs all rent increases in Ontario. The law provides strong protection: rent increases are capped at an annual guideline set by the province.
RTA s.116 — Notice of Rent Increase and Guideline Limits
Guideline-Based Increases
Landlords can increase rent once every 12 months by up to the annual guideline. This increase requires 90 days' written notice.
Above-Guideline Increases (AGI)
Landlords can apply for increases above the guideline only if they have made capital improvements. LTB approval is required, and the tenant must receive notice at least 90 days before the increase takes effect.
Current Guidelines
- 2024: 2.5%
- 2025: 2.5%
- 2026: 2.1%
- Guidelines vary year to year based on inflation
Increases below the guideline are legal. Increases at or below the guideline do not require LTB approval. Increases above require both documentation and LTB approval.
What This Means for You
You Have Time to Respond
Your landlord must provide 90 days' written notice before any rent increase takes effect. This gives you time to assess the increase, contact the LTB if needed, and plan your next steps. An increase without proper notice is invalid.
Above-Guideline Increases Must Be Justified
If your landlord tries to increase rent above the guideline (e.g., 5% when the guideline is 2.1%), they must have invested in major capital improvements (roof, heating system, etc.) AND received LTB approval. Without both, the increase is illegal.
You Can Challenge Illegal Increases
If your rent increase exceeds the guideline without LTB approval, or if notice was less than 90 days, you can apply to the LTB. The board will order a refund of the excess amount.
Increases Cannot Be Tied to Repairs
A landlord cannot increase your rent because they have made repairs or because the unit is in good condition. Repairs are part of their responsibility under RTA s.20. Only capital improvements to the building may justify above-guideline increases (with LTB approval).
What You Can Do
When You Receive a Rent Increase Notice
- Check the notice date and amount. It must be at least 90 days before the increase takes effect.
- Calculate the percentage increase. Divide the increase by your current rent. Is it within the 2026 guideline (2.1%)?
- Research the current guideline. Visit the Ministry of Housing website to confirm the official guideline.
- If above guideline, ask for documentation. Request proof of capital improvements and LTB approval. If they cannot provide it, the increase is likely illegal.
- File with the LTB if necessary. If the increase is illegal, you can apply to challenge it.
Do Not Ignore Invalid Increases
If you accept an illegal rent increase without challenging it, you may lose the right to recover the overpaid amount. Contact the LTB if you suspect an increase is unlawful.
If You Dispute the Increase
- Request written justification. Ask your landlord for details about capital improvements if claiming above-guideline.
- Gather evidence. Keep the notice and any correspondence. Document the timeline.
- File an LTB application. You can apply to challenge the increase within one year.
- Do not refuse to pay during dispute. Pay the amount you believe is correct (usually the previous rent). Withholding can be used against you. Let the LTB determine the proper amount.
Real Example: Winning a Rent Dispute
A tenant's landlord attempted a 5% rent increase (guideline was 2.5%). The landlord claimed the increase was for capital improvements but provided no documentation. The tenant filed with the LTB, which found no valid justification. The LTB allowed only a 2.5% increase and ordered the landlord to refund the excess 2.5%. The tenant also received compensation for the inconvenience.
Case Citation: TSL-12748-23. This case shows that the LTB protects tenants from unjustified rent hikes.
Historical Rent Increase Guidelines
| Year | Guideline |
|---|---|
| 2026 | 2.1% |
| 2025 | 2.5% |
| 2024 | 2.5% |
| 2023 | 2.5% |
| 2022 | 1.2% |
| 2021 | 0% (frozen) |
Guidelines are set by the Ontario government annually, typically based on inflation rates.
Key Takeaways
- •Rent increases are capped at the annual guideline (2.1% for 2026).
- •Your landlord must provide 90 days' written notice.
- •Above-guideline increases require capital improvements AND LTB approval.
- •You can challenge illegal increases and recover overpayments.