Receiving a rent increase notice can feel stressful—especially if you’re not sure whether the increase is legal under Ontario law. As a tenant, you have rights and protections outlined in the Residential Tenancies Act, 2006. This guide will help you understand how to verify if your landlord followed the rules and what steps to take if something feels off. Staying informed can help you avoid unnecessary disputes and ensure you’re paying the correct amount of rent.

Which Ontario Tenants Are Protected by Rent Increase Guidelines?

Most tenants in Ontario are protected by annual rent increase guidelines set by the provincial government. However, there are some exceptions. Understanding these basics can help clarify if the guidelines apply to you.

• Units first occupied for residential purposes after November 15, 2018 (typically new builds) are exempt from rent control guidelines, unless otherwise regulated.
• Social housing units, long-term care homes, and commercial tenancies usually have separate rules.

Check your lease or ask your landlord for the building’s history if you’re unsure. For a broader picture of your rights, see Tenant Rights in Ontario.

What Are the 2024 Ontario Rent Increase Guidelines?

Each year, Ontario sets a maximum percentage for most residential rent increases. For 2024, the guideline is 2.5%^[1]. Landlords typically cannot raise your rent above this limit unless they apply for, and receive, special approval from the Landlord and Tenant Board (LTB).

• No rent increase is allowed during the first twelve months of your tenancy.
• Landlords must give a minimum of 90 days’ written notice before a rent increase takes effect.
• Only one rent increase is allowed per 12 months, for most units.

If your unit is exempt from rent control (for example, it’s a newly constructed apartment first rented after late 2018), your rent may increase by any amount, but notice rules still apply. For more details on the notice rules and what happens after you’ve signed your lease, the article What Tenants Need to Know After Signing the Rental Agreement may be helpful.

How to Check If Your Rent Increase Notice Is Legal

Carefully review any notice your landlord gives you. A legal rent increase notice in Ontario must:

• Be delivered using the official LTB Form N1: Notice of Rent Increase (download from the Landlord and Tenant Board).
• Show the effective date of the rent increase (at least 90 days after you receive the notice).
• Show the new rent amount and the current amount.
• Meet the annual rent increase guideline (unless an exemption applies).

If your landlord uses the wrong form, gives less than 90 days’ notice, or requests an increase above the guideline (without LTB approval), the increase is not legal and you can refuse to pay the increased amount.

Special Circumstances: Above-Guideline Increases

Sometimes, landlords can apply to the Landlord and Tenant Board for permission to raise rent above the guideline (for things like major capital repairs). The approval process is formal and tenants must be notified. You are within your rights to request information or attend any related hearing.

Official Forms: What Tenants Should Look For

• Form N1: Notice of Rent Increase (official Ontario form)
  • When is it used? Landlords must use this form to give notice of a rent increase covered by rent control guidelines.
  • Example: If your landlord wants to increase your rent for June 1, they must provide Form N1 no later than February 28, clearly stating old and new rent amounts.
• Above Guideline Increase Applications (Form L5)
  • This form is used by landlords who want to increase rent above the annual guideline. Tenants will receive notice if this applies.
  • Learn more directly from the Landlord and Tenant Board forms page.

Familiarity with these forms can help you recognize and challenge an improper rent increase.

What to Do If You Receive an Illegal Rent Increase

If you think your rent increase is illegal, don’t ignore it. Here are the key steps you should take:

• Continue paying your current, legal rent.
• Contact your landlord in writing to request a corrected notice, explaining why you believe the increase is not permitted.
• Gather your lease, all rent increase notices, and other related documents.
• If the landlord insists, consider applying to the Landlord and Tenant Board (LTB) for a decision.

If you reach an impasse, the LTB can officially review and decide on the legality of the increase. Guidance on this process will help you feel confident and prepared.

Your Rights and Next Steps

Remember, Ontario law is designed to protect tenants from arbitrary and unfair rent hikes. For a deep dive into the subject, see Understanding Rent Increases: What Tenants Need to Know.

For more information about searching for new homes, Find rental homes across Canada on Houseme.

FAQ: Ontario Rent Increase Rules for Tenants

1. How much notice must my landlord give me for a rent increase in Ontario?
   Landlords must give you at least 90 days’ written notice using the proper LTB form for a rent increase to be legal.
2. Does the 2024 rent increase guideline apply to all apartments in Ontario?
   No. Units first used for residential purposes after November 15, 2018, are exempt from the guideline. Most other rental units are covered.
3. What if my landlord gives a rent increase notice that exceeds the guideline?
   Your landlord must get approval from the Landlord and Tenant Board to do this. Otherwise, you only have to pay an increase up to the guideline amount.
4. Should I pay the higher rent if I think the increase is illegal?
   No. Continue paying your current rent, seek advice, and consider applying to the LTB if necessary.
5. Where can I get an official decision if I have a dispute?
   The Landlord and Tenant Board (LTB) handles residential rental disputes, including rent increase issues in Ontario.

Key Takeaways

• Most Ontario tenants are protected by yearly rent increase guidelines and strict notice requirements.
• Landlords must use the correct official forms and follow 90-day notice rules.
• If you believe a rent increase is not legal, you have the right to dispute it through the LTB.

Need Help? Resources for Tenants

• Landlord and Tenant Board: Official LTB website – file applications, download forms, read guides.
• Ontario Ministry of Municipal Affairs and Housing: Renting in Ontario: Your Rights.
• Local Legal Aid Services: Contact your nearest community legal clinic for help or advice.
• Tenant Rights in Ontario

---

1. 2024 Ontario Residential Rent Increase Guideline
2. Residential Tenancies Act, 2006 (RTA), Ontario
3. Landlord and Tenant Board (LTB)

Categories

Tenant Rights & Responsibilities Rent & Deposits Leases & Agreements Moving In / Out Maintenance & Repairs Evictions Roommates & Shared Housing Discrimination & Accessibility Utilities & Services Affordable Housing & Subsidies Dispute Resolution & LTB Safety & Security Privacy & Entry by Landlord Special Tenancy Situations Tenant Insurance & Liability Post-Eviction Resources Landlord Compliance & Penalties Legal Precedents & Case Summaries Mental Health & Tenancy