How to Write a Rent Increase Notice in Ontario Correctly

Why rent increase notices matter

A rent increase notice is not just a formality. It is the official step that tells a tenant how much the rent will change, when the change starts, and whether the increase follows Ontario’s annual guideline or an approved exception.

The Ontario government states that landlords must give at least 90 days written notice in the proper form, and most rent can only be increased once every 12 months. If the notice is incomplete or the timing is wrong, the tenant may dispute it at the Landlord and Tenant Board.

For landlords, that means good paperwork matters as much as the dollar amount. A clean, accurate notice protects your rental income and helps avoid unnecessary conflict.

The 2026 Ontario rent guideline

For 2026, Ontario’s rent increase guideline is 2.1%. That is the maximum increase allowed for most rent-controlled residential units without Landlord and Tenant Board approval.

The guideline applies to most private residential units covered by the Residential Tenancies Act, including many rented houses, apartments, basement apartments, condos, care homes, mobile homes, and land lease communities. It does not apply to some exempt units, including many new buildings, additions, and most new basement apartments first occupied for residential purposes after November 15, 2018.

The key takeaway is simple: before you send any notice, confirm whether the unit is covered by the guideline or exempt from it. That one step can prevent a costly mistake.

What your notice must include

Ontario expects a rent increase notice to do more than announce a new rent amount. It must communicate the increase clearly and give the tenant enough time to respond.

A correct notice should include:

• The current rent amount.

• The new rent amount.

• The date the increase takes effect.

• At least 90 days written notice.

• The proper Landlord and Tenant Board form or a notice that includes all the same required information.

If the unit is exempt from the guideline, the lease should also include a clear term stating that the unit is exempt, and the landlord should keep records proving why. Ontario’s guidance specifically says landlords may want to keep documents such as permits, plans, occupancy records, or contractor invoices to support the exemption if a dispute comes up.

How to calculate the increase

The calculation is straightforward for most units. Multiply the current monthly rent by 2.1%, then add that amount to the existing rent.

Example:

• Current rent: $2,000

• 2.1% increase: $42

• New rent: $2,042

The Ontario government’s sample calculation follows the same logic and confirms that the guideline applies to the rent increase starting date, not the date you prepare the notice.

If the unit is exempt, the landlord may have more flexibility on amount, but the 90-day notice rule and 12-month spacing still apply.

When you can raise the rent

Ontario’s rule is usually 12 months between increases. That means the landlord must wait at least 12 months after the tenancy begins or after the last rent increase before issuing a new one.

This timing rule matters just as much as the percentage itself. Even a perfectly calculated increase can be invalid if it is sent too early.

For landlords with multiple properties, a simple rent review calendar helps avoid missed dates and accidental violations. Professional management is useful here because the notice window is tracked as part of the owner’s broader property reporting.

Exempt units and special cases

Not every unit follows the same guideline. Ontario’s rules say the guideline does not apply to certain new buildings, additions, and most new basement apartments first occupied for residential purposes after November 15, 2018.

That is why landlords should not guess about exemption status. If the unit was created recently, or if the property changed use over time, keep permits, photos, contracts, and occupancy records together in one file.

Above guideline increases

In some cases, a landlord can apply to the Landlord and Tenant Board for approval to raise the rent above the guideline. Ontario identifies this as an above guideline increase, often called an AGI.

The most common reasons include:

• Certain capital expenses.

• Certain security service costs.

• Unusually high municipal taxes and charges.

If a landlord applies for an AGI, the tenant does not automatically have to pay the full requested amount before the Board decides. That is another reason to handle the process carefully and not treat it like a standard guideline increase.

How to write the notice clearly

A good notice should be simple, specific, and professional. You do not need dramatic language. You need clarity.

Use this structure:

1. Identify the rental unit and tenant.

2. State the current rent.

3. State the new rent amount.

4. State the effective date.

5. Confirm that you are giving at least 90 days’ notice.

6. Reference the correct legal basis, if needed.

7. Keep a copy for your records.

For example, a notice might say: “Your monthly rent will increase from $1,800 to $1,837.80 effective October 1, 2026.” That reflects a 2.1% increase and gives the tenant a clear date and amount.

What landlords should avoid

A rent increase notice can fail if it is rushed or vague. Common mistakes include:

• Giving less than 90 days’ notice.

• Increasing rent before 12 months have passed.

• Using the wrong amount.

• Forgetting to confirm whether the unit is exempt.

• Failing to keep proof of delivery.

• Treating a special case like a standard unit.

These mistakes can lead to disputes at the Landlord and Tenant Board and can create unnecessary tension with a good tenant. A clean process helps protect both income and relationships.

How property management helps

This is the kind of task that looks simple until it is not. A professional property manager tracks timing, prepares notices, verifies exemption status, and keeps records organized so the landlord does not have to manage the details alone.

At Golfi Property Management, we help landlords handle rent reviews and notice timing as part of a broader, worry-free approach to ownership. That includes communication with tenants, maintenance coordination, and reporting that keeps the property running smoothly.

For owners in Hamilton and surrounding areas, that support is especially helpful when you own more than one unit, live out of town, or simply want a cleaner process from month to month.

Frequently asked questions

How much notice is required for a rent increase in Ontario?

Ontario generally requires at least 90 days written notice before the rent increase takes effect.

The notice must also be given in the proper form or contain the same required information.

What is the 2026 rent increase guideline in Ontario?

The 2026 rent increase guideline is 2.1%.

That is the maximum increase allowed for most tenants without Landlord and Tenant Board approval.

Can I raise the rent more than 2.1% in 2026?

Usually not, unless the unit is exempt or you have Landlord and Tenant Board approval for an above guideline increase.

The most common AGI reasons involve certain capital expenses, security services, or unusually high municipal taxes and charges.

Do I need to use a special form?

Yes. Ontario says the landlord must give written notice in the proper form available from the Landlord and Tenant Board.

Are new basement apartments exempt from rent control?

Some are. Ontario says most new basement apartments first occupied for residential purposes after November 15, 2018 are exempt from the guideline, but the landlord should be able to prove the exemption if questioned.

What if I make a mistake on the notice?

The tenant may dispute the increase at the Landlord and Tenant Board if the notice is improper or the amount is wrong.

That is why it is important to check the date, form, amount, and unit status before sending anything.

Conclusion

Writing a rent increase notice Ontario landlords can rely on comes down to three things: the correct amount, the correct timing, and the correct paperwork. For 2026, the guideline is 2.1% for most units, with at least 90 days written notice and 12 months between increases.

The challenge for self-managing landlords is not just the math. It is keeping track of exemptions, notice periods, tenant communication, and the records that support your decision if anyone questions it later.

We help landlords manage these details with tailored service, reliable tenant communication, and proactive reporting. If you want support handling rent increases the right way, request a consultation, explore our services, or contact our team to simplify your landlord experience.