How Much Can a Landlord Raise the Rent in Ontario? 2026 Guide
Want to know how much can a landlord can raise the rent in Ontario? Every year, thousands of renters across Ontario face rent increases, and many aren’t sure what’s actually allowed. In fact, the province sets a legal rent increase guideline annually, and most landlords can only raise rent within that limit. For example, more than 1.5 million households in Ontario live in rental homes, and rent laws are designed to protect affordability while allowing landlords to cover rising expenses.
Ontario has set that any landlord can raise rent by a maximum of 2.5% this year. Even though the cost of living has climbed over the last few years heading into 2026, the province keeps rent increases much lower to help protect tenants from sharp price jumps. This limit applies automatically, meaning landlords do not need approval from the Landlord and Tenant Board as long as they stay within the 2.5% cap.
There is a catch, that not every rental is included. Newly built units first lived in after November 15, 2018, empty rentals, community and non-profit housing, long-term care rooms, and commercial leases do not follow the cap. For most tenants, a 2.5% increase is the highest change they can expect. If you’re renting out a condo or planning to become a landlord, knowing these rules helps avoid misunderstandings and keeps the rental process fair for everyone.
Because we manage properties across Hamilton, Halton, Niagara, and Brantford, we see how important it is for both landlords and tenants to understand the rules clearly. In this guide, we explain how much a landlord can raise the rent, who the rules apply to, and what notice is required, so everyone knows exactly where they stand before a rent change takes effect.
Let’s jump in.
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What Is the Legal Rent Increase Limit in Ontario?
Ontario’s provincial government sets a rent increase guideline every year. This guideline decides how much a landlord can raise the rent for most residential units. The limit is based on inflation and economic factors.
For example, Statistics Canada research shows that rental costs continue to rise as demand for housing increases, especially in growing cities like Hamilton and Niagara.
Key points:
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Landlords must follow the yearly guideline set by the provincial government
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Most residential properties are covered under this rule
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Rent increases above the guideline require special approval
So, how much can a landlord raise the rent? Only up to the yearly guideline unless the landlord receives approval for a higher amount.
Does the Rent Increase Guideline Apply to All Properties?
Not every building follows the rent increase guideline. This is where many tenants get confused, so we always clarify it.
The guideline applies to:
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Most private rental homes
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Condos rented out by owners
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Apartments built before November 15, 2018
The guideline does NOT apply to:
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Units built and occupied on or after November 15, 2018
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Certain non-profit and social housing units
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Long-term care rooms and retirement home fees
In newer buildings, how much a landlord can raise the rent is not restricted by the guideline. However, landlords must still provide proper notice, and increases must be seen as reasonable.
How Often Can a Landlord Raise the Rent in Ontario?
We often see tenants panic when they hear about a rent increase, but landlords can’t raise it whenever they want. The rules are strict and clear.
A landlord can only increase rent:
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Once every 12 months
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After a tenant has lived in the unit for one full year
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With written notice
What Notice Does a Landlord Need to Give?
If a landlord wants to apply a rent increase, written notice is required. The notice must be delivered at least 90 days before the new rent takes effect.
This protects tenants from sudden increases and gives everyone enough time to plan.
How Much Can a Landlord Raise the Rent If They Need More Than the Guideline?
If your a landlord in Ontario, and need help, simply reach out to our team today, we offer affordable property management services.
How Much Can a Landlord Raise the Rent If They Need More Than the Guideline?
Sometimes landlords want to raise rent more than the yearly limit—for example, when a building needs major repairs or energy upgrades.
When this happens, landlords can apply for an Above Guideline Increase.
Reasons a landlord may request a higher increase:
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Large repairs or renovations
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Mortgage refinancing
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Unexpected maintenance costs due to safety or structural needs
Even with these reasons, approval is not guaranteed. The landlord must apply to the Landlord and Tenant Board, and the tenant has the right to respond.
Why Rent Increase Rules Matter for Both Landlords and Tenants in Ontario
We often compare rent increase rules to a seatbelt, nobody notices them until something goes wrong. These rules keep rental housing predictable, fair, and stable. For tenants, it prevents sudden jumps in monthly costs. For landlords, it helps maintain the property and keep the business sustainable.
When both sides follow the rules, renting is smoother and less stressful.
Do Landlords Have To Raise Rent Every Year? How Often do They do it in Ontario?
No, landlords don’t have to increase rent every year. Many choose not to, especially if they have long-term tenants who care for the property. But once a landlord skips a rent increase, that percentage doesn’t “stack.” They must follow the current guideline and cannot add previous missed increases to the new one.
When Is a Rent Increase Illegal in Ontario?
Rent increases are not legal if:
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The tenant has not lived at the property for 12 months
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The landlord did not give proper written notice
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The amount is above the guideline without approval
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The landlord tries to increase rent twice in one year
- If the landlord deems to find a tenant as a “Bad Tenant” therefore they cannot still raise the rent.
If a tenant receives an invalid notice, the tenant does not have to pay the higher amount.
How We Help Property Owners and Tenants
When it comes to How Much Can a Landlord Raise the Rent, at Golfi Property Management, we manage rental properties across Hamilton, Halton, Niagara, and Brantford. We help landlords follow the law, handle notices, and maintain good relationships with tenants. We also help tenants understand their rights, so everyone knows what to expect. Our services include tenant screening, rent collection, maintenance coordination, inspections, cleaning, snow removal, marketing rental units, and full property management support.
When both sides understand how much a landlord can raise the rent, it prevents confusion and keeps rental agreements professional and fair.
Conclusion
Understanding how much a landlord can raise the rent helps protect both landlords and tenants. When everyone follows Ontario’s rules, rent increases remain fair, predictable, and legal. If you need help managing rentals, handling notices, or understanding landlord laws, we assist property owners and tenants throughout Hamilton, Halton, Niagara, and Brantford.
FAQs
1. How much can a landlord raise the rent each year in Ontario?
They can only raise the rent up to the yearly guideline set by the provincial government unless they receive approval for a higher increase.
2. Do newer buildings follow rent increase limits?
Buildings first occupied on or after November 15, 2018, are exempt from the guideline, but proper notice is still required.
3. Can a landlord raise rent twice in one year?
No, rent can only be raised once every 12 months.
4. How much notice must a landlord give before raising rent?
A written notice must be given at least 90 days in advance.
5. Can a landlord skip an increase and add it later?
No, missed increases do not carry over into future years.