Ontario Rent Increase Rules: What's Legal and What's Not
Your landlord cannot raise your rent whenever they want. Ontario law sets strict limits on how often, how much, and how a rent increase must be communicated. Here's everything you need to know.
The Core Rules
- Rent can only be increased once every 12 months.
- The landlord must give at least 90 days written notice using the proper N1 form.
- The increase must not exceed the annual Rent Increase Guideline — unless a legal exemption applies.
- Guideline exemptions include: units first occupied after November 15, 2018; some non-profit housing; care homes.
- An above-guideline increase (AGI) requires a LTB application and is only granted for specific reasons.
- If a landlord does not use the correct form or give proper notice, the increase is void.
Ontario Rent Increase Guidelines
Each year, the Ontario government announces the maximum allowable rent increase for the following year. The guideline is based on the Ontario Consumer Price Index.
| Year | Guideline Rate |
|---|---|
| 2025 | 2.5% |
| 2024 | 2.5% |
| 2023 | 2.5% |
| 2022 | 1.2% |
| 2021 | 0% (freeze due to COVID-19) |
Source: Ontario Ministry of Municipal Affairs and Housing. Check ontario.ca for the most current guideline.
Above-Guideline Increases (AGIs)
A landlord who wants to raise rent beyond the guideline must apply to the LTB for an above-guideline increase. The LTB only grants AGIs for specific reasons:
- Extraordinary increases in property taxes or utility costs
- Capital expenditures (major repairs or improvements to the building)
- Increases in operating costs for security services
Important: If your landlord files an AGI application, you have the right to contest it at the LTB hearing. You can dispute the necessity of the expenditures, their reasonableness, or the accuracy of the claimed costs. Consider getting legal help before an AGI hearing.
How to Dispute an Illegal Rent Increase
Verify the notice
Confirm the notice is on Form N1, was given at least 90 days before the effective date, and the increase amount is correct.
Check the guideline
Compare the proposed increase against the Ontario Rent Increase Guideline for that year. If it exceeds the guideline, it may be illegal.
Check your exemption status
If your unit was first occupied after November 15, 2018, the guideline may not apply. Verify this with your tenancy agreement or building records.
File a T1 application
If the increase is illegal, file a T1 — Tenant Application for a Rebate of Money the Landlord Owes — with the Landlord and Tenant Board.