Rent control in Ontario shapes what you pay if you rent and what you can charge if you own. One main law sets the rules, the Residential Tenancies Act, 2006 (RTA). For 2026, the provincial rent increase guideline is 2.1%. That number is the most a landlord can raise rent on most existing tenants in a year without approval from the Landlord and Tenant Board.
This guide walks you through the 2026 guideline, the notice your landlord must give, which units sit outside rent control, and what you can do when a rent increase looks wrong. You will also see how the Landlord and Tenant Board fits into the picture.
Quick answers for 2026
- The 2026 rent increase guideline is 2.1%, down from 2.5% in 2025.
- Your landlord must give at least 90 days written notice on Form N1.
- Rent can rise only once every 12 months for the same tenant.
- Units first occupied for residential use after November 15, 2018 sit outside the guideline.
- A landlord needs Board approval to charge more than the guideline.
What rent control means in Ontario
Rent control limits how fast your rent can climb. It does not freeze rent, and it does not cap what a landlord charges a brand new tenant. It controls the yearly increase for people who stay in the same unit.
The RTA covers most private rentals. That includes rented houses, apartments, basement apartments, condos, care homes, mobile homes, and land lease communities. Social and community housing follow separate rules.
Each year the Ontario Ministry of Municipal Affairs and Housing publishes a guideline. The province ties that number to the Ontario Consumer Price Index, a Statistics Canada measure of inflation. Data from June to May sets the figure for the next year. You can confirm the current number on the province’s residential rent increases page.
The 2026 rent increase guideline
The 2026 guideline is 2.1%. That is the lowest cap in four years, and it fell from 2.5% in 2025.
The law also sets a hard ceiling. The guideline can never go above 2.5%, even when inflation runs hotter. So a landlord who stays inside the guideline cannot ask for more than 2.1% this year on a rent controlled unit.
Here is a simple example. Say you pay $2,000 a month. A 2.1% increase adds $42, so your new rent becomes $2,042. That increase cannot take effect until at least 90 days after your landlord gives you proper written notice, and only if 12 months have passed since your last increase or your move in date.
Ontario rent increase guideline, recent years
| Year | Guideline |
| 2026 | 2.1% |
| 2025 | 2.5% |
| 2024 | 2.5% |
| 2023 | 2.5% |
| 2022 | 1.2% |
| 2021 | 0% (provincial rent freeze) |
| 2020 | 2.2% |
Data from the Government of Ontario.
How and when your landlord can raise rent
A rent increase does not happen on its own. Your landlord must follow three rules.
First, 12 months must pass since your last increase or the day your tenancy began. Second, your landlord must give you at least 90 days written notice before the new rent starts. Third, that notice must use Form N1, the official Notice of Rent Increase from the Landlord and Tenant Board.
A text, an email, or a casual letter does not count. If your landlord skips the form or the timing, the increase is not valid, and you can keep paying your current lawful rent.
Which units sit outside rent control
Not every rental falls under the guideline. The RTA carves out newer housing to encourage builders to add supply. Two groups sit outside the cap.
New buildings and additions. A building, addition, mobile home park, or land lease community that nobody occupied for residential use on or before November 15, 2018 is exempt. If the space was first lived in after that date, the guideline does not apply.
New units inside existing houses. A new unit in a detached, semi detached, or row house can be exempt when the unit was finished after November 15, 2018 and one of two things is true. Either someone built it in space that sat unfinished before, such as a basement or attic, or the owner lived in another part of the house when the new unit was first occupied.
Exempt does not mean unlimited. Even for an exempt unit, your landlord must still give 90 days written notice and can raise rent only once every 12 months. The difference is the amount. For an exempt unit, no guideline caps the size of the jump.
Rent controlled unit compared with an exempt unit
| Feature | Rent controlled unit | Exempt unit |
| Annual increase limit | Capped at the guideline (2.1% for 2026) | No set cap, the landlord chooses the amount |
| Written notice | At least 90 days on Form N1 | At least 90 days on Form N1 |
| How often | Once every 12 months | Once every 12 months |
| Approval to exceed the cap | Required through Form L5 | Not applicable |
| First occupied | On or before November 15, 2018 | After November 15, 2018 |
Proving a unit is exempt
If you and your landlord disagree about exempt status, the landlord carries the burden of proof. The landlord has to show the unit qualifies.
Good records settle most of these arguments. A landlord should keep documents such as the following.
- Building permits, permit applications, and plans.
- Occupancy permits and new home warranty papers.
- Invoices from the builder or contractor.
- Before and after photos for a converted space like a basement or attic.
A signed statutory declaration about the first occupancy date also helps. You can swear that kind of declaration in front of a commissioner of oaths. A short line in the lease under section 15 of the Standard Lease can record the exemption too. That note does not replace proof, but it sets expectations early.
When a landlord can charge more than the guideline
Sometimes a landlord can ask for more than the guideline. This is an Above Guideline Increase, or AGI. The landlord cannot simply decide on it. The landlord files Form L5 with the Landlord and Tenant Board at least 90 days before the proposed increase, and the Board has to approve it.
The Board allows an AGI for three reasons.
Major capital work. Big repairs or replacements that last at least five years, such as a new roof, new windows, or a new heating system. Routine fixes like painting or a single appliance do not count.
Higher security costs. New or increased spending on security services for the building.
Extraordinary municipal charges. An unusually large jump in municipal taxes or charges.
For capital work and security costs, the Board cannot grant more than 3% above the guideline in any single year. In 2026 that means a typical maximum of 5.1% in one year for those reasons. If the approved amount runs higher, the landlord spreads the rest over the next two years, again at no more than 3% above the guideline each year. Increases tied to municipal charges do not face that 3% yearly cap, but the Board still has to approve them.
One practical point. If you get a notice showing an above guideline amount, you do not owe the extra portion until the Board orders it. Keep paying your current lawful rent on time while the application runs.
What you can do if a rent increase looks wrong
You have clear options when a rent increase seems illegal or unfair.
Start with the facts. Compare the increase to the guideline, check the 90 day notice, confirm the form, and confirm that 12 months passed since the last increase. If something is off, the increase may not stand.
File the right application. To recover money from an illegal increase, you file a T1, the Tenant Application for a Rebate of Money the Landlord Owes. File it within 12 months of the date the amount was first charged. A T1 is the form for illegal charges and overpaid rent. The T2 form covers other tenant rights issues, such as harassment, illegal entry, or withdrawn services. You can find both on the Landlord and Tenant Board forms page.
Attend the hearing. Once you apply, the Board sets a hearing where both sides present their case. Bring your lease, every notice you received, rent records, and any messages with your landlord.
Try mediation. Before the hearing, the Board often offers mediation. It tends to be faster and less formal than a full hearing, and it can settle the matter without a ruling.
The market behind the rules
Rent control matters more when the market moves. Through early 2026, asking rents across Ontario cooled. Average asking rent in the province sat near $2,229 a month in February 2026, down about 4.3% from a year earlier, according to Rentals.ca. In the City of Toronto, the average ran higher, around $2,375 a month in May 2026 based on Zumper data, even as several unit types slipped year over year.
That gap between turnover rents and what sitting tenants pay shows why rent control matters. When you stay in a rent controlled unit, your increase tracks the guideline. When you move, you pay the current market rate, which can run far higher. For 2026, a $1,700 rent in a controlled unit rises by about $36 a month under the 2.1% guideline. The same unit at turnover could reset hundreds of dollars higher.
“Run the math before you move. A unit you already hold under rent control might be cheaper than anything new on the market.”
Demet Altunbulakli, Founding Lawyer
Frequently asked questions
What is the rent increase guideline for 2026 in Ontario?
The 2026 guideline is 2.1%. That is the most a landlord can raise rent on most existing tenants in a year without approval from the Landlord and Tenant Board.
How much notice does my landlord need to give before raising rent?
At least 90 days written notice on Form N1. The increase also cannot take effect until 12 months after your last increase or your move in date.
Is my unit exempt from rent control?
Likely yes if anyone first occupied it for residential use after November 15, 2018. This covers many new buildings, additions, and new basement units. Older units stay under the guideline.
Can my landlord raise rent more than 2.1% in 2026?
Only with Board approval through an Above Guideline Increase, or if your unit is exempt. For capital work and security costs, the Board caps the extra at 3% above the guideline per year.
My landlord raised my rent without proper notice. What can I do?
You can keep paying your current lawful rent. To recover an overpayment, file a T1 application with the Landlord and Tenant Board within 12 months of the charge.
Does rent control apply when a new tenant moves in?
No. The guideline controls increases for the same tenant. When a unit turns over, the landlord and the new tenant agree on the starting rent.
The information provided above is of a general nature and should not be considered legal advice. Every transaction or circumstance is unique, and obtaining specific legal advice is necessary to address your particular requirements. Therefore, if you have any legal questions, it is recommended that you consult with a lawyer.
