How to raise rent in Ontario in 2026

If you own a rental property in Ontario, you can only raise rent once every 12 months — and you must give your tenant at least 90 days written notice before the increase takes effect. Get either of those wrong and the increase is void.

Here's how to do it correctly.

The 2026 rent increase guideline

The Ontario government sets an annual rent increase guideline — the maximum percentage most landlords can raise rent without approval from the Landlord and Tenant Board (LTB).

For 2026, the guideline is 2.5%.

This applies to most private residential rental units. If your unit was first occupied for residential purposes on or after November 15, 2018, it is exempt from guideline limits, and you can raise rent by any amount (still with 90 days notice).

Step-by-step: raising rent legally

1. Check the 12-month rule

You can only raise rent once in any 12-month period. If you raised rent in March 2025, your next increase cannot take effect before March 2026.

The 12 months are measured from the last increase, not from the start of the lease.

2. Calculate the new amount

For a unit covered by the guideline, multiply the current rent by 1.025 (2.5%).

Example: $1,800/month × 1.025 = $1,845/month

You are not required to use the full guideline amount. You can raise by less, or skip a year entirely.

3. Give 90 days written notice

Use the N1 form — Notice of Rent Increase — available from the LTB website. Serve it to your tenant at least 90 days before the effective date.

The notice must state:

• The current monthly rent
• The new monthly rent
• The date the increase takes effect

Delivery methods that count toward the 90 days:

• In person (counts from delivery date)
• Registered mail (add 5 days for delivery time)
• Email, if the tenant has agreed in writing to receive notices by email

4. Keep a copy

Retain a signed copy or a delivery confirmation. If a dispute arises at the LTB, you'll need to prove the notice was served correctly and on time.

What if you need to raise rent above the guideline?

If your costs have increased significantly — major capital improvements, security services, or extraordinary operating cost increases — you can apply to the LTB for an Above Guideline Increase (AGI).

AGI applications require documentation and take several months to process. Tenants have the right to dispute them.

Common mistakes to avoid

Giving less than 90 days notice. The increase is void. You'll need to restart the process.

Raising rent more than once in 12 months. Not permitted, even if both increases are below the guideline.

Applying the guideline to an exempt unit. You may actually be leaving money on the table — post-November 2018 units have no cap.

Not using the N1 form. A text message or email saying "rent is going up" is not sufficient notice under the RTA.

Onsite doesn't automate rent increases (those have to be done correctly and intentionally), but it does track lease dates and monthly rent for each tenant so you always know when the 12-month window opens.