Each year, the Ontario Government sets a guideline for rent increases and is applicable to most renters. The guideline regulates the maximum present a landlord can increase rent – this helps to balance affordability for renters with the financial needs of property owners.

The 2026 rent increase guideline allows landlords to raise rent by a maximum of 2.1% without requiring approval first from the Landlord and Tenant Board (the LTB). As an example, a monthly rent of $2,000 could increase by $42.00, resulting in a new monthly rent of $2,042. This increase isn’t automatic though, Landlords are required to provide 90 days’ written notice by using a LTB designated N1 form. It’s important to note too that landlords can only implement a rent increase once every 12 months.

Best Practises

Landlords should be sure to use the official N1 form and follow all steps outlined on the form – failure to accurately fill out the form or providing the form too early could result in the form becoming unenforceable. Tenants should anticipate a potential 2.1% increase and adjust their budgets to account for slightly higher costs of living.

Exempt Units

As noted above, the rent increase guideline applies to most tenancies, except for:

• Units first occupied for residential purposes after November 15, 2018, such as new constructions, additions to existing buildings or newly converted basements.
• Vacant units, where landlords and new tenants negotiate the initial rent upon signing a lease;
• Community housing, long‑term care facilities and commercial properties

Moving Forward

The rent increase guideline for 2026 of 2.1% reflects Ontario’s commitment to promoting a more stable and equitable rental market. This increase safeguards predictable costs for tenants and offers financial relief in economic uncertainty. This guideline also provides steady insurance of steady rental income for landlords and support of continued property maintenance.

If you have questions relating to rent increase guidelines, we welcome you to reach out to us.

Filed in: Housing