Above-Guideline Increase
AGI
An Ontario rent increase above the annual guideline, allowed only with Landlord and Tenant Board approval on set grounds.
An above-guideline increase (AGI) is an Ontario rent increase larger than the yearly rent increase guideline. A landlord cannot impose one alone. It requires an order from the Landlord and Tenant Board (LTB). The landlord applies on Form L5, the Application for an Above Guideline Increase.
The Act allows three grounds. The first is an extraordinary increase in municipal taxes and charges. The second is eligible capital expenditures, meaning major repairs, replacements or renovations. The third is new or increased costs for security services provided by people who are not the landlord's employees. Higher utility costs alone are not one of the grounds.
The increase is capped. For capital expenditures and security services, the increase cannot be more than 3% above the guideline in any one year. A larger justified amount can be spread over the next two 12-month periods, at up to 3% above the guideline each year. Increases for municipal taxes have no such cap.
Timing rules are strict. The landlord must file at least 90 days before the first requested increase date. Capital work must be finished within the 18 months ending 90 days before that date, and must be paid for before filing. Tenants whose tenancy began after the work was finished cannot be included. When the LTB order sets an end date for the capital expenditure portion, the landlord must reduce the rent by that amount.
Tenants can see the landlord's supporting documents, respond in writing and take part in the hearing. They can raise serious maintenance problems that are still unresolved. If the LTB finds one, it can dismiss the application for that unit or stop the increase until the problem is fixed. Separately, a landlord and tenant may agree in writing, on Form N10, to an increase of up to 3% above the guideline. This is allowed only in exchange for major repairs, new equipment or a new service, and the tenant can cancel within five days of signing.
Sources
- LTB brochure: Applications for a Rent Increase Above the Guideline
- LTB Interpretation Guideline 14: Rent Increases Above the Guideline
- LTB: A Guide to the Residential Tenancies Act
Last reviewed October 16, 2026.
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General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.