Ontario Rent Increase Rules Explained: 2026 Guideline, N1 Notices & AGI Applications
By Solutions Property Management — Tue Jan 13 2026
Quick answer
In Ontario, landlords can typically increase rent by the annual guideline (2.5% for 2026) once every 12 months for most units, provided they issue an N1 notice at least 90 days in advance. Units first occupied after November 15, 2018, are exempt from this rent control.
What Is the Ontario Rent Increase Guideline?
Each year, the Ontario government publishes a rent increase guideline that caps how much landlords can raise rent on most existing tenancies. For 2026, the guideline is 2.5% — applied once every 12 months with proper notice.
Which Units Are Covered?
The guideline applies to most rental units, except units first occupied after November 15, 2018, which are exempt from rent control (though all other RTA rules still apply).
How to Properly Increase Rent
1. Wait 12 months since the tenant moved in or since the last increase 2. Serve Form N1 — Notice of Rent Increase at least 90 days before the new rent takes effect 3. Use the correct effective date — not earlier than the anniversary 4. Keep proof of service (registered mail, hand delivery with witness, or email if previously agreed)
Skip any of these steps and the increase is void, even if the tenant pays.
Above Guideline Increases (AGI)
If you've made significant capital improvements — new roof, windows, HVAC, elevator modernization — you may apply to the LTB for an AGI to recover those costs over time. AGIs are common in older Hamilton and St. Catharines buildings undergoing major upgrades.
Vacancy Decontrol
When a tenant moves out voluntarily, you can re-rent the unit at any price the market will bear. This is why turnover, while disruptive, can sometimes reset under-market rents in long-held Niagara properties.
Common Mistakes That Cost Landlords Thousands
- Increasing rent without serving N1
- Serving N1 less than 90 days in advance
- Increasing more than once in 12 months
- Forgetting to update lease addendums
- Trying to "negotiate" a higher increase informally
Need Help?
Solutions Property Management handles N1 service, AGI applications, and LTB representation for landlords across the Hamilton-Niagara corridor. We make sure every increase is legal, documented, and collected.
Frequently asked questions
What is the maximum rent increase for 2026 in Ontario?
For 2026, the maximum rent increase guideline for most existing tenancies in Ontario is 2.5%. This increase can only be applied once every 12 months, and landlords must give proper notice using Form N1. Units first occupied after November 15, 2018, are exempt from this guideline.
How much notice do I need to give for a rent increase in Ontario?
Landlords in Ontario must provide tenants with at least 90 days' written notice before a rent increase takes effect. This notice must be given using the official Form N1 — Notice of Rent Increase. Failing to provide proper notice makes the increase void.
Can I increase rent above the guideline in Ontario?
Yes, you can apply for an Above Guideline Increase (AGI) if you've made significant capital improvements like a new roof or HVAC system. The Landlord and Tenant Board (LTB) reviews these applications to allow recovery of costs over time. This is common in older Hamilton buildings.
What happens to the rent when a tenant moves out in Ontario?
When a tenant voluntarily moves out of a unit, landlords can set the rent for the next tenant at any price the market will bear. This is known as vacancy decontrol and allows landlords to reset rents that may have fallen below market rates over time.