Many tenants in Ontario are concerned about rising rent, especially in today’s competitive rental market. If you’re wondering how often your landlord is allowed to increase your rent, or what rules and notifications they must follow, you’re not alone. Understanding these rules will help you protect your home and budget—and ensure you’re treated fairly under the law.
How Often Can Rent Be Increased in Ontario?
Ontario’s Residential Tenancies Act, 2006 regulates when and how much your rent can go up. For most private residential units, landlords can only increase your rent once every 12 months. The annual rent increase guideline is set by the Ontario government and applies to most tenancies, but some exceptions apply (for example, newer buildings or certain subsidized housing units).
- Frequency: One increase allowed every 12 months.
- Notice Required: At least 90 days' written notice before the new rent takes effect.
- Amount: Cannot exceed the government’s annual guideline unless approved by the Landlord and Tenant Board (LTB).
It’s important to note that increases outside of these rules may not be legal. For a deeper look at rent increase rules and what tenants should expect, see Understanding Rent Increases: What Tenants Need to Know.
How Is the Rent Increase Guideline Set?
The annual rent increase guideline is calculated by the Ontario government and announced each year. For 2024, the guideline is capped at 2.5%[1]. This percentage tells landlords the maximum amount they can legally raise rent for most existing residential tenancies—unless they apply for an exception.
Exceptions to the Rent Guideline
- New Buildings: Rental units first occupied after November 15, 2018 are exempt from the guideline but must still follow 12-month and 90-day notice rules.
- Social and Affordable Housing: Different rules may apply to subsidized or non-profit units.
If you’re unsure about your unit’s status, check your lease or seek help from a tenant resource (see resources below).
What Notice Must a Landlord Give for a Rent Increase?
Landlords must serve you with a written notice at least 90 days before the new rent takes effect. The required document is:
- Name: Form N1: Notice of Rent Increase
- Official source and download
When to Use: Your landlord uses Form N1 to legally inform you of a rent increase that follows the annual guideline. For example, if you signed a lease on May 1, 2022, your landlord can’t increase your rent until after May 1, 2023, and must give you notice at least 90 days before the new rent starts.
Responding to an Incorrect or Illegal Rent Increase
If you believe your rent increase doesn’t follow the rules, you do not have to pay it. You can:
- Contact your landlord in writing and refer to the correct rules.
- Apply to the Landlord and Tenant Board (LTB) for review if the situation is not resolved.
The Landlord and Tenant Board (LTB) is Ontario’s official tribunal for resolving rental disputes.
To challenge a rent increase, you can use the following form:
- Name: Form T1: Tenant Application for a Rebate of Money the Landlord Owes
- Official source and download
When to Use: File Form T1 if your landlord charged a rent increase above the guideline or increased rent without proper notice.
What Happens at the End of Your Lease?
When your fixed-term lease ends, your tenancy automatically continues on a monthly basis unless you or your landlord give notice to end the agreement. You may wonder if rent can be raised when your lease renews. The rules for rent increases do not change at lease renewal—they still require one increase per 12 months and at least 90 days’ written notice. For more on lease renewals, visit Lease Renewals: What Tenants Should Know About Their Rights.
For a full overview of your rights as a renter, including information on deposits, obligations, and paying rent, read Tenant Rights in Ontario.
Need to find an affordable place if your rent goes up? Affordable homes for rent in Canada are available to browse online.
Tenant Protections and Key Takeaways
- You never have to agree to a rent increase above the guideline unless it is approved by the LTB.
- Your landlord must use official forms and provide proper notice before any increase takes effect.
- Annual rent increase rules are designed to protect tenants from sudden or excessive rent hikes.
Reviewing your rental agreement and understanding the process can help avoid misunderstandings. For more on your rights and what happens after signing a lease, visit What Tenants Need to Know After Signing the Rental Agreement.
FAQ: Ontario Rent Increases
- How often can my landlord raise the rent in Ontario?
Only once every 12 months, with at least 90 days’ written notice, and generally not above the annual guideline. - What if my landlord tries to raise the rent by more than the guideline?
This is only allowed if the Landlord and Tenant Board approves it. Otherwise, you are not required to pay the excessive increase. - Do the rules apply to all rental units?
No. Some newer buildings (first occupied after November 15, 2018) and certain non-profit or subsidized units may be exempt from guideline increases, but still require notice. - Can my landlord increase rent when my lease renews?
Rent can still only be increased once every 12 months, and you must receive written notice at least 90 days ahead—regardless of renewal. - What forms are used for rent increases?
Form N1 is the official notice for standard rent increases. Tenants may use Form T1 to challenge illegal increases.
Need Help? Resources for Tenants
- Landlord and Tenant Board (LTB) — information and forms
- Ontario Government Tenant Rights Portal
- Local tenant advocacy centres (such as the Advocacy Centre for Tenants Ontario - ACTO)
- 211 Ontario — housing help and advice by region
- Government of Ontario, 2024 Rent Increase Guideline.
- See Section 119 and 120 of the Residential Tenancies Act, 2006.
- Landlord and Tenant Board (LTB) official website.
- LTB Forms Portal: Landlord Forms and Tenant Forms.
