Rent Increase Guideline 2026: What Ontario Landlords Need to Know
By Solutions Property Management — Sat Feb 14 2026
Quick answer
Ontario's 2026 rent increase guideline is 2.5%, applying to most residential tenancies established before November 15, 2018. Landlords must give 90 days' written notice, typically using Form N1, and can only increase rent once every 12 months. Units occupied after this date are exempt from the guideline.
Ontario's 2026 rent increase guideline is 2.5%. It applies to most residential tenancies where the unit was first occupied before November 15, 2018.
How it works, briefly
- You can raise rent once every 12 months
- You must give 90 days written notice on Form N1
- The increase can't exceed the guideline unless you have an approved Above Guideline Increase (AGI)
The exemption most landlords forget they have
Units first occupied for residential purposes after November 15, 2018 are exempt from the guideline. That doesn't mean you can raise rent whenever you want — you still need to give 90 days notice, you still can only raise once per 12 months, and you still need to use the N2 form instead of N1. But the cap doesn't apply.
If you own a purpose-built rental completed in 2019 or later, or a new addition/laneway suite, check the date carefully. A lot of Hamilton stock built in the last five years falls into this bucket, and owners routinely under-charge because they assume the guideline applies.
AGI: when it's worth the effort
AGIs are worth filing when you've done a capital expenditure (new roof, new windows, new boiler) that meaningfully exceeds normal maintenance. The paperwork is real, the timeline is 12-18 months to a decision, and you'll want a paralegal. But on a multi-unit building, a successful AGI can add 3-9% on top of guideline for up to three years.
One thing not to do
Don't try to "reset" rent by getting a tenant to sign a new lease at a higher rate mid-tenancy. That's not how Ontario works — the tenancy continues on the same terms until the tenant leaves. Any "agreement" to a rent above guideline is unenforceable.
Frequently asked questions
What is the rent increase guideline for 2026 in Ontario?
The rent increase guideline for 2026 in Ontario is set at 2.5%. This percentage applies to most residential tenancies that began before November 15, 2018. Landlords must give tenants 90 days' written notice, typically using Form N1, and can only implement an increase once every 12 months.
Do all rental units in Ontario follow the rent increase guideline?
No, not all rental units follow the guideline. Units first occupied for residential purposes after November 15, 2018, are exempt. This means landlords of newer builds, like many in Hamilton from the last five years, or new additions/laneway suites, are not capped by the guideline. However, they still need to provide 90 days' notice using Form N2 and can only raise rent once every 12 months.
When can a landlord charge more than the provincial rent increase guideline?
A landlord can charge more than the provincial guideline if they receive approval for an Above Guideline Increase (AGI) from the Landlord and Tenant Board (LTB). This is usually sought after significant capital expenditures, such as a new roof or boiler, that go beyond normal maintenance. For LTB hearings, we recommend engaging a licensed paralegal or lawyer.
Can Solutions Property Management help Hamilton landlords with rent increases?
Yes, Solutions Property Management helps Hamilton landlords navigate rent increases. We can prepare and serve N-series notices and file L-series applications with the LTB. This service costs one hour of admin time plus the LTB filing fees. Call us at 905-974-9871 to discuss how we can assist you with your rental property.