Ontario Rent Increase Guideline 2026: What Hamilton Landlords Need to Know

By Solutions Property Management — Thu Apr 23 2026

What Is the Rent Increase Guideline?

The rent increase guideline is the maximum percentage by which a landlord can raise

rent in a given year for most existing tenants. It is set annually by the Ontario

government and is based on the Ontario Consumer Price Index.

For 2026, that number is 2.1%.

Which Units Does It Apply To?

The guideline applies to most residential rental units first occupied on or before

November 15, 2018. This includes houses, apartments, condos, basement units, care

homes, and mobile homes.

Units first occupied after November 15, 2018 are exempt from rent control. This means

landlords of newer units can set rents freely at turnover, though rent in a tenancy still

cannot be raised more than once per year without proper notice.

How to Issue a Legal Rent Increase

Even when staying within the guideline, you must follow the proper process:

1. Give the tenant at least 90 days written notice before the increase takes effect.

2. Use the N1 form — Notice of Rent Increase — available on the Landlord and Tenant Board website.

3. Rent can only be increased once every 12 months.

4. The notice must include the amount of the increase, the new rent amount, and the date it takes effect.

If you skip any of these steps, the increase is not legally enforceable. This is one of the most common and costly mistakes self-managing landlords make.

What If 2.1% Is Not Enough?

If your costs have increased significantly — major capital improvements like a new roof, HVAC system, or building-wide renovation — you may be able to apply for an above-guideline increase through the LTB. This requires a formal application with documentation of your costs.

The other option is at turnover. When a tenant moves out, you can set rent to whatever the market will bear for the new tenancy, regardless of what the previous tenant was paying. This is why turnover strategy and rent optimization matter so much for Hamilton landlords right now.

Bill 60 and the 2026 Rent Increase Changes

Bill 60, which received Royal Assent in November 2025, made significant changes to Ontario tenancy law. On rent increases specifically, the guideline itself remains at 2.1% for 2026, but Bill 60 changed eviction timelines and some procedural aspects of the LTB process that landlords need to understand alongside the rent increase rules.

One important update: the N4 notice period for non-payment of rent has been shortened from 14 days to 7 days under Bill 60, giving landlords faster access to the LTB process when tenants are not paying.

How to Maximize Rent at Turnover

Since market rents in Hamilton have risen significantly over the past several years, many landlords have tenants paying well below current market rates. When a tenant leaves, this is your opportunity to reset to market. A professional property manager will:

• Conduct a current market rent analysis for your unit type and neighbourhood
• Advise on whether a strategic renovation or refresh could support a higher rent
• List the unit at the optimized rent with professional photos and broad marketing

At Solutions Property Management, we routinely help Hamilton landlords recover $200 to $400 per month per unit at turnover through targeted improvements and accurate market positioning.

Frequently Asked Questions

Q: What is the Ontario rent increase guideline for 2026?

A: The rent increase guideline for 2026 is 2.1%. This is the maximum a landlord can increase rent for most existing tenants in Ontario without Landlord and Tenant Board approval.

Q: Do I have to give 90 days notice for a rent increase in Ontario?

A: Yes. Ontario law requires a minimum of 90 days written notice before a rent increase takes effect, using the N1 form from the Landlord and Tenant Board.

Q: Can I raise rent more than the guideline in Ontario? A: Only in limited circumstances. You can apply to the LTB for an above-guideline increase if you have incurred significant capital improvement costs. Alternatively, when a tenant leaves, you can set rent at market rate for the new tenancy.

Q: Does rent control apply to new buildings in Ontario? A: No. Units first occupied for residential purposes after November 15, 2018 are exempt from Ontario's rent control guidelines. Landlords can raise rent at turnover for these units without restriction, though proper notice is still required during a tenancy.

Q: How many times can I raise rent in Ontario each year? A: You can only raise rent once every 12 months per unit, and you must give at least 90 days written notice using the N1 form. Even if the unit is exempt from rent control, the 12-month rule still applies during an active tenancy.

The Bottom Line

The 2.1% guideline for 2026 is not the whole picture. Understanding when it applies, how to issue it correctly, and how to optimize rents at turnover is what separates landlords who are growing their income from those who are falling behind.

If you want help managing rent increases across a multi-unit portfolio, Solutions Property Management handles the process end to end. Book a free property evaluation to discuss your portfolio.