Legal Rent Increases in Ontario: Tenant Guide 2024

Facing a rent increase as a tenant in Ontario? Understanding when a rent increase is legal can help you protect your rights and plan your budget. In Ontario, there are strict laws covering rent increases, notice periods, and allowable amounts. This overview demystifies the process using up-to-date rules and guidance from the Landlord and Tenant Board.

Who Regulates Rent Increases in Ontario?

The Landlord and Tenant Board (LTB) is responsible for residential tenancy disputes, including rent increases. The rules come from the Residential Tenancies Act, 2006.[1]

Basic Rules: When Is a Rent Increase Legal?

Most residential tenancies in Ontario are covered by legislation that sets out if, when, and how rent can be raised. Here are the essentials:

  • 12-Month Rule: Landlords can only raise rent once every 12 months for the same tenant.
  • Written Notice: Rent increases require at least 90 days' written notice, using the official Form N1: Notice of Rent Increase.
  • Annual Guideline: The maximum percentage increase is set by the Ontario government each year. For 2024, the increase guideline is 2.5%.
  • Exceptions: Certain newly built or recently occupied units after November 15, 2018, may be exempt from rent increase limits, but notice rules still apply.[1]
If you're unsure about your building's exemption status, contact the Landlord and Tenant Board or an Ontario tenant advocacy group.

The Notice of Rent Increase (Form N1)

Landlords must give tenants the official Form N1: Notice of Rent Increase. This ensures the increase is legitimate and provides clarity for both parties. You can view and download the form directly from the LTB’s official forms page.

How and When Is Form N1 Used?

  • Form N1 must be completed and delivered to the tenant at least 90 days before the increase takes effect.
  • Example: If you pay rent on the first of each month and receive an N1 on March 1, your new rent cannot begin until June 1.
  • The form must state the current rent, the new rent, the increase amount, and the effective date.

What Should Tenants Do After Receiving an N1?

  • Review the form for accuracy—check that dates and calculations are correct.
  • Verify whether your unit is covered by rent increase guidelines.
  • If you believe the increase is unlawful or you’ve received improper notice, you can file a complaint with the LTB.

Are There Exceptions to Rent Increase Limits?

Some situations allow for higher or more frequent increases:

  • Upon written agreement with the tenant for additional services or parking.
  • By application to the LTB for extraordinary increases (e.g., significant capital repairs).
  • If your rental unit is exempt—such as newer units first occupied after November 15, 2018—but the 90 days' notice still applies.

For more about common challenges like rent increases and what to watch for as a tenant, the Understanding Rent Increases: What Tenants Need to Know page offers a detailed look at your rights and next steps.

What to Do if You Disagree with a Rent Increase

Tenants have options if they believe a rent increase is illegal:

  • Speak directly with your landlord to clarify or negotiate.
  • Apply to the LTB for a hearing using Form T1: Tenant Application for a Rebate of Money the Landlord Owes if you think you were charged too much (LTB Tenant Forms).
  • Do not withhold rent unless ordered by the LTB; continue paying the old amount if you dispute the new rent.
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Rent Deposits and Rent Increases

If your rent goes up, your landlord may also request a corresponding increase to your last month’s rent deposit, but only by giving written notice. If this applies to your situation, see our in-depth resource Understanding Rental Deposits: What Tenants Need to Know for guidance on how increases impact rental deposits.

Rights and Obligations After a Rent Increase

After a legal rent increase, tenants must pay the new amount starting on the effective date. Landlords cannot demand back-rent for months before this date. For a broader understanding of your responsibilities, see the page Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

Summary: Staying Protected as a Tenant

The key things to remember are:

  • Only one legal rent increase every year
  • Correct official notice using the proper form, given 90 days in advance
  • Annual guideline applies, except for some newer units

If you ever have doubts, contact the LTB quickly or reach out for tenant advocacy support. For a full rundown of your rights in this province, see Tenant Rights in Ontario.

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Frequently Asked Questions About Rent Increases in Ontario

  1. How much can my rent go up each year in Ontario? The government sets an annual guideline for most rents—2.5% for 2024. Your landlord can’t go above this unless they receive LTB approval or your unit is exempt.
  2. How much notice must my landlord give before raising my rent? At least 90 days' written notice, using Form N1.
  3. What if my landlord tries to raise my rent twice in one year? This is illegal unless there’s a special exemption; contact the LTB for help.
  4. Can my landlord ask for a bigger deposit after a rent increase? Yes, but only to increase your last month's rent deposit to match the new rent, and they must give written notice.
  5. Where do I get official help or forms regarding rent increases? The official Landlord and Tenant Board provides all forms and guidance online.

Need Help? Resources for Tenants

  1. Ontario Residential Tenancies Act, 2006 – Ontario government official legislation
  2. Landlord and Tenant Board (Ontario)
  3. Annual Rent Increase Guideline: 2024 Rent Increase Guideline
  4. Ontario Tenant Forms: All LTB forms

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