Ontario rent control has never been more important — or more misunderstood. With rents still elevated across the province, knowing exactly what the rules are could save you thousands of dollars or prevent a costly legal dispute.
Ontario rent control limits how much a landlord can increase rent for an existing tenant in a given year. The allowable increase is set annually by the provincial government as the Rent Increase Guideline — based on the Ontario Consumer Price Index for the prior year.
For 2026 the Ontario rent increase guideline is 2.5%. This means landlords of rent-controlled units can raise rent by a maximum of 2.5% with proper 90-day written notice. Any increase above this amount requires approval from the Landlord and Tenant Board.
This is where most tenants get confused. Ontario rent control applies only to residential units that were first occupied for residential purposes before November 15, 2018. Units that were new or first occupied after this date are exempt from rent control — meaning landlords of newer buildings can raise rent by any amount between tenancies or with sufficient notice.
Even for rent-controlled units, Ontario law allows landlords to apply for Above-Guideline Increases (AGIs) in specific circumstances. An AGI application is made to the Landlord and Tenant Board and may be approved when the landlord has completed major capital expenditures, experienced extraordinary increases in property taxes or utility costs, or faces other qualifying cost increases.
Capital expenditure AGIs can allow rent increases of several percentage points above the guideline and can continue for up to 3 years. Tenants have the right to oppose AGI applications at a hearing and should consider consulting a tenant duty counsel or tenant advocacy organization before signing any AGI agreement.
Ontario landlords must provide tenants with at least 90 days written notice of any rent increase using the approved N1 form. The increase can only take effect on the first day of a rental period — typically the first of the month. Rent can only be increased once every 12 months per tenancy, regardless of the unit's rent control status.
If your landlord attempts to increase your rent above the guideline without an approved AGI, or without proper notice, you have the right to refuse the illegal portion of the increase. You can file an application with the Landlord and Tenant Board to have the illegal increase reversed and potentially receive a rent rebate.
The LTB processes thousands of rent increase disputes annually in Ontario. Filing an application costs $53 for tenants and the process is accessible without a lawyer through the tribunal's self-help resources. Community Legal Clinics across Ontario also provide free legal advice to tenants on rent-related matters.
Q: Can a landlord raise rent to market rate when a new tenant moves in?
A: Yes — for both controlled and uncontrolled units, landlords can set any rent amount at the start of a new tenancy. Rent control only limits increases during an existing tenancy. This is why many Ontario landlords prefer tenant turnover — they can reset rent to current market rates with each new tenancy.
Q: Does rent control apply to basement apartments in Ontario?
A: Rent control rules apply to basement apartments the same way they apply to other rental units — based on the date the unit was first occupied. A basement apartment created and first rented before November 15, 2018 is rent controlled. One first rented after that date is exempt.
Q: What is the 2026 Ontario rent increase guideline?
A: The Ontario rent increase guideline for 2026 is 2.5%. This applies to rent-controlled units — those first occupied before November 15, 2018. The guideline is announced by the provincial government each year based on the Ontario Consumer Price Index. Landlords must give 90 days written notice before any rent increase takes effect.
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