Rent Increase Guideline
The yearly cap on rent increases for rent-controlled units. In Ontario it is 2.1% for 2026 and 1.9% for 2027.
A rent increase guideline is the maximum percentage a landlord can raise rent in a year without special approval. Provinces set it each year. In Ontario it is called the rent increase guideline. British Columbia sets a similar limit called the maximum allowable rent increase.
In Ontario, the guideline is 2.1% for 2026 and 1.9% for 2027. It is based on the Ontario Consumer Price Index and is capped at 2.5%, even when inflation is higher. A landlord can usually raise rent only once every 12 months, counted from the start of the tenancy or the last increase. The landlord must give at least 90 days' written notice on the proper Landlord and Tenant Board form, usually an N1.
Not every Ontario unit is covered by the cap. New buildings, additions and most new basement apartments first occupied for residential purposes after November 15, 2018 are exempt from the guideline. If this is disputed, the landlord has to prove the exemption. The 12-month rule and the 90-day notice rule still apply to these units.
A landlord can go above the guideline in two ways. The landlord and tenant can agree in writing to an increase of up to 3% above the guideline, but only in exchange for major repairs, new equipment or a new service. Otherwise, the landlord must apply to the Landlord and Tenant Board for an above-guideline increase, which is allowed only on specific grounds.
British Columbia works in a similar way under different rules. As of 2026, the maximum allowable increase is 2.3% for 2026, and it has been set at 2.2% for 2027. BC landlords must give at least three full months' notice on Form RTB-7 and cannot round up. Other provinces have their own limits, and some have none, so the province where the unit is located decides which rule applies.
Sources
- Residential rent increases (ontario.ca)
- LTB: A Guide to the Residential Tenancies Act
- Rent increases, BC Residential Tenancy Branch (gov.bc.ca)
Last reviewed October 16, 2026.
Go deeper
Related terms in Tenancy & Leases
- Residential Tenancies Act The provincial law that sets the rules for residential rentals, such as Ontario's Residential Tenancies Act, 2006.
- Residential Tenancy Branch The Residential Tenancy Branch runs British Columbia's tenancy dispute resolution and administers the Residential Tenancy Act.
- Standard Lease Ontario's mandatory government lease form for most private residential tenancies signed on or after April 30, 2018.
- Above-Guideline Increase An Ontario rent increase above the annual guideline, allowed only with Landlord and Tenant Board approval on set grounds.
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.