Living in Ontario brings both opportunity and responsibility for tenants and landlords, especially when it comes to the annual rent increase process. Understanding your rights under the Residential Tenancies Act and knowing exactly how much your landlord can raise your rent each year will help you avoid costly surprises and plan ahead. This guide explains the annual rent increase guideline for Ontario, official forms involved, and steps you can take if your rent is increased.

What Is the Rent Increase Guideline in Ontario?

Each year, the Ontario government sets the rent increase guideline—the maximum percentage a landlord can raise most tenants’ rent if proper notice is given. This guideline applies to most private residential rentals covered by the Residential Tenancies Act, 2006¹.

• For 2024: The rent increase guideline is 2.5%.
• This means your landlord cannot raise your rent by more than 2.5% in 2024, unless they have special approval.

Some rental units are exempt (such as those first occupied after November 15, 2018, certain social housing units, and non-profit co-ops). Always check your lease’s start date or consult the Landlord and Tenant Board for clarification.

Who Sets and Enforces the Guideline?

The Landlord and Tenant Board (Ontario) is the official body administering Ontario’s rental laws, handling rent increase disputes and complaints. Rent increase rules come from the Residential Tenancies Act, 2006.

How Must Landlords Give Notice for Rent Increases?

Landlords must provide at least 90 days’ written notice before raising your rent. This advance notice must use the correct government-issued form to be valid.

Official Form: Notice of Rent Increase (Form N1)

• Form Name: Notice of Rent Increase (Form N1)
• When Used: Landlords use Form N1 to inform tenants of a lawful rent increase for most rental units covered by the Act.
• How It Works: If your lease renews annually, and you moved in before November 15, 2018, your landlord can serve this form at least 90 days before the increase takes effect. For example, to raise rent as of July 1, 2024, you must receive the notice by April 2, 2024.
• Find the latest Form N1 from the Landlord and Tenant Board

If you have a fixed-term lease, your rent can only be raised at the end of the term (unless your lease says otherwise). Month-to-month tenants can have their rent increased once every 12 months, with proper notice.

Exceptions and Additional Rent Increases

• Above-Guideline Increases: In rare cases, landlords can apply to the Board for permission to raise rent above the annual guideline, for reasons like extraordinary repair costs.
• Landlords must get approval from the Landlord and Tenant Board and serve tenants a different form (Form L5 Application).

For more details about your tenant and landlord obligations around paying rent and lease renewals, you can also read Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips and Lease Renewals: What Tenants Should Know About Their Rights.

What If My Landlord Doesn’t Follow the Rules?

If your landlord raises your rent above the guideline without approval or gives less than 90 days’ notice, the increase is not enforceable. Do not pay the unlawful increase—seek clarification from the Board and keep paying your current legal rent.

Action Steps If You Disagree With a Rent Increase:

• Check the date and details on the Form N1 you received.
• Confirm your rental unit is subject to the annual guideline (not exempt).
• If you think the notice or increase is invalid, contact the Landlord and Tenant Board to dispute the rent increase.
• You can also file an Application About Tenant Rights (Form T2) with the Board. Access Form T2 here.

If you are facing other issues besides rent increases, such as maintenance concerns or landlord obligations, see Understanding Rent Increases: What Tenants Need to Know or learn more about Tenant Rights in Ontario.

Recent Changes to Rent Increase Laws

Since November 2018, new rental units in Ontario (first occupied after Nov 15, 2018) are generally exempt from rent control. Always confirm your building’s occupancy date and exemption status if you’re unsure.

FAQ: Ontario Rent Increase Guidelines

1. How often can my landlord raise my rent in Ontario? Once every 12 months, with at least 90 days’ written notice using Form N1, for most tenancies.
2. What should I do if I receive a rent increase notice above the guideline? Contact the Landlord and Tenant Board. The increase may not be valid unless approved through a Board application.
3. Are rent-controlled rules different for condos or basement apartments? The guideline usually applies, but new (post-2018) rental units may be exempt. Double-check your unit’s status.
4. What if my landlord doesn’t use the official Form N1? The notice may be invalid. Keep paying current rent and seek advice from the Landlord and Tenant Board.
5. Where can I search for more affordable homes or compare rental rates? Browse apartments for rent in Canada for a broad view of rental prices and options.

Conclusion: Key Takeaways for Ontario Tenants

• Most Ontario tenants are protected by an annual rent increase guideline (2.5% in 2024).
• Your landlord must give you 90 days’ written notice using the proper government form.
• If you suspect an unlawful increase, contact the Landlord and Tenant Board for help.

Staying informed helps you protect your rights and budget with confidence. For a full overview of tenant protections, see Tenant Rights in Ontario.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB) Ontario: Rules, forms, applications, and tenant help
• Ontario Government: Renting in Ontario – Your Rights
• Tenant hotlines and advocacy: Advocacy Centre for Tenants Ontario (ACTO)
• View legal definitions and summary of tenancy law: Residential Tenancies Act, 2006
• Find rental homes across Canada on Houseme

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1. Ontario. Residential Tenancies Act, 2006
2. Landlord and Tenant Board Ontario. Official LTB website
3. Form N1 and T2: LTB Forms Portal
4. Ontario Government. Rent Increase Guideline Overview

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