• Housing
• Buy a Home
• Landlord Rights and Responsibilities

How often can a landlord increase the rent?

Your landlord can only increase your rent once every 12 months. They must also give you written notice at least 90 days before the rent goes up.

When you enter a rental agreement for the first time, the landlord determines the rent amount and which services (hydro, electricity, parking, etc.) are included. Sometimes, you can negotiate what bills will be included in the rent, but it is ultimately their decision. Although rental housing prices are based on current market prices in Ontario, there are no limitations to what a landlord may ask for rent.

The market price for a unit can be significantly higher than what the tenant before you paid. There is no maximum amount of rent that a landlord can charge a new tenant. The exceptions are non-profit housing, such as rent-geared-to-income (RGI), subsidized co-ops, and some student housing, like on-campus residences.

Ontario is a rent-controlled province for the most part, with a few exceptions. This means a landlord can increase your rent by only a limited amount each year. Newer buildings are not rent-controlled, and landlords do not need to follow the same guidelines.

How much can my landlord increase the rent?

Once you've completed the first 12 months of your lease, your landlord can only increase your rent by a limited percentage per year. This maximum increase amount is based on the yearly guide limits set out by the Ontario Ministry of Municipal Affairs and Housing and calculated on the Ontario Consumer Price Index.

For example:

• For 2026, the increase limit is 2.1% 
• The limit for 2027 will be 1.9%

You can see the yearly guideline limits on the Ontario.ca website.

In some cases, landlords can apply to the Landlord and Tenant Board (LTB) for approval to raise your rent above the guide limits. For example, the LTB might approve a higher increase if your landlord has made large repairs or installed a security system.

Seasonal Rent Adjustment for an Air Conditioner

The landlord has the right to temporarily increase your rent during the hotter months by the cost of running a portable or window air conditioner (A/C), if your rent includes electricity costs. The AC unit must be installed after July 2026 in order to be eligible for a seasonal rent increase. At the same time, the rent must be reduced for those months when the A/C is not in use or has been removed. Visit the Tribunals Ontario brochure on Rules for Air Conditioners in Rental Units for more information on seasonal rent adjustments.

What is not rent-controlled?

New residential apartment buildings, condos or houses that were occupied for the first time as of November 15, 2018, are not rent-controlled. Landlords can increase the rent year-to-year to whatever they want and they are not required to follow any guidelines. They must, however, wait 12 months before they can request an increase.

This also applies to residences that were newly built and occupied as of November 15, 2018, like:

• apartment additions to existing buildings or houses
• basement apartments
• mobile home parks and land lease community
• a self-contained unit in a house that already had up to two residential units

Always read your lease carefully before you sign anything for the first time, and ask questions about when the unit was built and first occupied to determine if the place will be rent-controlled or not. Some landlords are more flexible and you can negotiate specific terms ahead of time to be listed in the rental contract. For example: "Increase after the first 12 months will be no more than 4%" so always ask if you plan to stay in a place for the long term.

For More Information

• Rent Increases - This guide explains how a landlord can increase a tenant's rent according to the Residential Tenancies Act. From Community Legal Education Ontario (CLEO).
• Navigate Tribunals Ontario- With this online tool from the Landlord and Tenant Board, you can customize your search to access resources on your rights and responsibilities. The tool is designated to help you navigate the rules set out by the Landlord and Tenant Board.
  
• Landlord and Tenant Board - Provides information about the Residential Tenancies Act and how to resolve disputes between most residential landlords and tenants.
• What Tenants Need to Know About the Law - Topics covered include rent increases, deposits, and other charges, repairs and maintenance, privacy, moving out, and eviction. From Community Legal Education Ontario (CLEO).