The short version
- 1.9% for increases that take effect in 2027. 2.1% for increases that take effect in 2026.
- The year that matters is the year the new rent starts, not the year you serve the notice.
- 90 days' written notice on Form N1, and at least 12 months since the last increase.
- For a January 1, 2027 increase, the N1 has to be served by about October 3, 2026. Mail adds five days on top.
- Units first occupied after November 15, 2018 have no percentage cap, but the 90-day and 12-month rules still apply.
01The number, and the year it belongs to
Ontario has set the rent increase guideline at 1.9% for 2027. That is down from 2.1% in 2026 and 2.5% in each of 2023, 2024 and 2025, and it is the lowest figure since the 2021 rent freeze.
The part that catches people out is which year's number applies. It is not the year you write the notice. It is the year the new rent actually starts. Serve a notice in November 2026 for an increase that begins in February 2027, and you are on 1.9%, not 2.1%.
On a $2,400 unit that difference is about $4.80 a month. Small on its own. Across eight units it is roughly $460 a year, and getting it wrong in the other direction makes the whole increase invalid.
| Increase takes effect in | Guideline | On $2,400 rent |
|---|---|---|
| 2025 | 2.5% | $60.00 a month |
| 2026 | 2.1% | $50.40 a month |
| 2027 | 1.9% | $45.60 a month |
02Three rules, and all three have to pass
A rent increase in Ontario is not one rule. It is three, and an increase that fails any one of them is void. The tenant simply keeps paying the old rent, and a landlord who collected the higher amount is holding money that has to go back.
- 1
The guideline cap
For most units first occupied on or before November 15, 2018, the increase cannot exceed the guideline for the year it takes effect. You are always allowed to charge less, and plenty of landlords do to keep a good tenant.
- 2
90 days of written notice on Form N1
Not a text message. Not a note in the mailbox that says rent is going up. Form N1, filled in properly, with the old rent, the new rent and the effective date on it.
- 3
12 months since the last increase
Counted from the last increase, or from the start of the tenancy if there has not been one. Twelve months and a day is fine. Eleven months and 29 days is not.
03Work backwards from January 1
Most Ontario landlords want the increase to land on January 1, because that is when leases and budgets turn over. Here is what that actually requires.
TenantBay calculatorWhat can you actually raise the rent to?
Three rules decide every Ontario rent increase: the guideline for the year the increase takes effect, 90 days of written notice on Form N1, and 12 months since the last increase. Miss any one of them and the increase is void.
Your tenancy
What the law allows
Put in the rent and the date of the last increase. You will get the maximum lawful rent, the earliest date it can take effect, and the day the notice has to be out the door.
General information about the Residential Tenancies Act, not legal advice. Confirm the guideline and the current N1 form with the Landlord and Tenant Board before you serve anything.
04What this looks like when it goes wrong
05Newer buildings are exempt from the cap, not from the rules
If the unit was first occupied for residential purposes after November 15, 2018, the guideline percentage does not apply to it. That covers most new purpose-built rentals, most additions, and a lot of newer basement apartments.
What does still apply is the 90 days of written notice and the 12-month gap. Landlords who hear the word exempt and assume it means unregulated end up serving increases that are perfectly reasonable in amount and still invalid on timing.
The other thing exemption does not do is survive a challenge you cannot evidence. If a tenant disputes it, you are the one who has to show when the unit was first occupied. Keep the occupancy permit, the first lease, and the first rent receipt somewhere you can find them in five years.
06The part nobody enjoys: remembering
None of this is difficult. It is just a date problem spread across a portfolio, and date problems are exactly what falls apart when the record lives in a personal inbox and a spreadsheet somebody built in 2021.
TenantBay keeps the last increase date, the current rent, and the rent history on the tenancy itself, so the eligible window opens on its own and the reminder arrives before the 90 days runs out rather than after. Same for the lease, the payments, the notices and the year-end totals. One login, not six tabs.
Questions landlords actually ask
What is the Ontario rent increase guideline for 2027?
1.9%. It applies to any increase that takes effect during 2027 for most units first occupied on or before November 15, 2018. For increases taking effect in 2026 the figure is 2.1%.
Which guideline applies if I serve the notice in 2026 for a 2027 increase?
The 2027 figure of 1.9%. The guideline is fixed by the year the new rent takes effect, not the year the notice is served.
Can I raise rent by less than the guideline?
Yes. The guideline is a ceiling, not a target. Charging less is common where a landlord would rather keep a reliable tenant than risk a turnover that costs more than the increase would earn.
What happens if I give less than 90 days' notice?
The increase is void. The tenant keeps paying the old rent, and anything you collected above it has to be returned. You cannot shorten the gap by reissuing the notice; you start the 90 days again.
Do I have to use Form N1?
For a guideline increase, yes. Form N2 is used where the unit is exempt from the guideline. A letter or an email is not a notice of rent increase, no matter how clearly it is written.
Sources
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