Rent Increase Guideline 2026: What Ontario Landlords Need to Know

By Solutions Property Management — Sat Feb 14 2026

The 2026 rent increase guideline, when it applies, and the exemptions most landlords miss.

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.