Understanding how and when your rent can increase is a crucial part of renting in Ontario. Each year, the provincial government sets a maximum percentage that most landlords can raise your rent, known as the annual rent increase guideline. This guide helps Ontario tenants understand the process, their rights, and the steps to take if you receive a rent increase notice.

How the Annual Rent Increase Guideline Works in Ontario

The rent increase guideline is a percentage set every year under the Residential Tenancies Act, 2006, which regulates most rental properties in Ontario. For 2024, the increase guideline is 2.5%¹. This means, in most cases, your landlord cannot raise your rent by more than 2.5% for 2024.

• The guideline applies to most private residential units, including apartments, condos, basement suites, and houses.
• Some units are exempt, such as new buildings occupied for the first time after November 15, 2018, non-profit and social housing, and some long-term care homes.

This guideline is set to help keep rent increases reasonable and predictable for tenants.

When Can a Landlord Raise the Rent?

Landlords must follow specific rules before increasing rent:

• They must wait at least 12 months after either the start of the tenancy or the last rent increase.
• They have to provide a written notice at least 90 days before the new rent kicks in.

If you’re wondering what happens after you sign your lease, check What Tenants Need to Know After Signing the Rental Agreement for more information about timing and expectations.

Official Forms for Rent Increases

In Ontario, landlords are required to use the Form N1: Notice of Rent Increase to legally notify tenants of a rent hike. Here’s what you need to know:

• Form N1 - Notice of Rent Increase: Used for most rent-controlled units. Landlords must fill it out and deliver it to you at least 90 days before the new rate starts. Access the official Form N1.

Example: If your landlord wants to increase rent starting August 1, they must deliver Form N1 by May 3 at the latest.

If the increase does not follow the law (for example, it's above the guideline or you didn't get proper notice), you do not have to pay the extra amount. You may apply to the Landlord and Tenant Board (LTB) for help.

What If the Rent Increase is Above the Guideline?

Landlords can only charge more than the guideline if approved by the Landlord and Tenant Board by making an application for an Above Guideline Increase (AGI). Common reasons may include significant repairs or increased municipal taxes.

Your Rights When Facing a Rent Increase

• You are not required to accept an illegal rent increase.
• You have the right to stay in your home, even if you do not agree to the proposed new rate, as long as you pay the legal rent that meets the guideline.
• If a landlord tries to evict you for refusing an illegal increase, you can challenge this at the Landlord and Tenant Board.

For a deeper look at your protections and how landlords must follow the rules, visit Understanding Rent Increases: What Tenants Need to Know.

Steps to Respond to a Rent Increase Notice

If you receive a rent increase notice, here’s what you should do:

• Check that the increase follows the annual guideline.
• Confirm you received the correct written notice (Form N1), and it gives you at least 90 days' warning.
• If you believe the increase is illegal, contact the Landlord and Tenant Board or a local legal clinic for advice.
• Continue paying the legal rent amount unless the Board decides otherwise.

Need to understand more about rent payment obligations? Visit our Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

For more details on rental law, see Tenant Rights in Ontario or Browse apartments for rent in Canada for more options.

FAQ: Ontario Rent Increase Guideline

1. How much can my landlord increase my rent in 2024? The 2024 guideline is 2.5% for most residential tenancies in Ontario.
2. Does the guideline apply to all rental units? No, some newer buildings, non-profit housing, and special accommodations may be exempt from the guideline.
3. What notice must my landlord provide before a rent increase? Landlords must give you at least 90 days' written notice using Form N1.
4. What should I do if my landlord wants to raise rent by more than allowed? You can contact the Landlord and Tenant Board to dispute increases above the guideline without Board approval.
5. Can my landlord raise the rent more than once a year? No, landlords must wait at least 12 months between legal rent increases.

Conclusion: Key Takeaways for Ontario Tenants

• Most landlords cannot raise rent above the annual guideline without LTB approval.
• Tenants must receive a written notice (Form N1) at least 90 days in advance.
• You are protected from illegal rent hikes and have clear dispute options through the Board.

Staying informed about the guideline helps you protect your rights and maintain stable housing.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB) Ontario: Application forms, dispute resolution, and landlord/tenant rights.
• Ontario Government — Renting in Ontario: Your Rights: Official guidance on rent increases and tenant protections.
• Ontario Tenant Hotline: 416-921-9494 or toll-free 1-888-332-3234 for legal support and advocacy.

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1. Government of Ontario. Residential Rent Increase Guideline. Accessed 2024.
2. Residential Tenancies Act, 2006

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