APARTMENT RENTAL NEWS

If you’re renting in Ontario, you’re probably wondering how much your rent might go up next year. With inflation, interest rates, and housing costs still high, it’s a fair question — and thankfully, there’s a clear answer.

For 2026, the Ontario government has set the maximum rent increase guideline at 2.1%. This limit helps protect tenants from large rent hikes and gives you a sense of what to expect as you plan your budget for the year ahead.

Let’s break down what this means, who it applies to, and when exceptions come into play.

What Is the 2026 Rent Increase Guideline?

Every year, Ontario sets a rent increase guideline under the Residential Tenancies Act (RTA). This number represents the maximum percentage that most landlords can raise rent without special permission from the Landlord and Tenant Board (LTB).

For 2026, that number is 2.1% — meaning if you’re paying $2,000 per month, your landlord can raise your rent by up to $42 per month (bringing your new total to $2,042).

The guideline is based on the Ontario Consumer Price Index (CPI) — a measure of inflation that reflects changes in the cost of living across the province.

When and How Landlords Can Raise Rent

Even with a guideline in place, landlords must follow specific rules before increasing rent.

Here’s what the law says:

1. 12-Month Rule – Your landlord can only raise your rent once every 12 months. Even if you renew your lease or sign a new term, the 12-month clock still applies.
2. 90-Day Notice – Landlords must give at least 90 days’ written notice before a rent increase takes effect. The notice must be delivered using the official Form N1 from the Landlord and Tenant Board.
3. Proper Documentation – The notice must clearly state:
4. The current rent
5. The new rent
6. The percentage of increase
7. The date it takes effect

If any of these conditions are missed — for example, the wrong notice form or not enough advance notice — the rent increase may not be legally valid.

Who the Guideline Applies To (and Who It Doesn’t)

The 2.1% guideline applies to most private residential rental units in Ontario, including apartments, condos, and houses.

However, some properties are exempt from rent control. That means landlords of these units are not bound by the annual cap and can legally raise rent by any amount — as long as they follow the 12-month and 90-day notice rules.

Exempt units include:

1. Rental units first occupied after November 15, 2018
2. Vacant units that are being newly rented out
3. Certain non-profit housing, co-ops, or long-term care homes

If you’re unsure whether your unit falls under rent control, check your lease or ask your landlord when the building was first occupied.

Above-Guideline Rent Increases (AGI)

There are situations where a landlord can legally raise rent above the 2.1% cap — but only with approval from the Landlord and Tenant Board.

These are called Above-Guideline Increases (AGIs) and are typically granted for specific reasons such as:

1. Major capital repairs or renovations (e.g., replacing a roof, upgrading plumbing, or installing new windows)
2. Significant increases in municipal property taxes or utilities
3. Added security services, such as hiring security guards for the property

To apply for an AGI, landlords must submit documentation to the LTB proving the expenses. Tenants have the right to attend the hearing, review the evidence, and dispute the increase if it seems unjustified.

Even when approved, AGIs are often limited to a maximum of 3% above the annual guideline, and the increase can be spread out over several years.

What Tenants Can Do If Rent Increases Feel Unfair

If you receive a rent increase notice that seems too high or suspicious, here are your options:

1. Double-check the details.

   Make sure the notice:

2. Was delivered at least 90 days in advance
3. Uses the official Form N1
4. Shows a valid percentage increase (2.1% or less, unless AGI approved)
5. Confirm whether your unit is covered by rent control.

   If your building was first occupied after November 15, 2018, it may be exempt. You can still ask your landlord for clarification.

6. Dispute it if necessary.

   You can apply to the Landlord and Tenant Board to challenge an improper rent increase.

7. Keep everything in writing.

   Save copies of your lease, rent receipts, and all notices in case you need to provide evidence later.

8. Seek tenant support.

   Legal clinics and tenant advocacy organizations, like CLEO (Community Legal Education Ontario), provide free advice and resources for renters.

Real-World Example

Let’s say you currently pay $1,500 per month in rent.

1. A 2.1% increase = $31.50
2. Your new rent would be $1,531.50 per month, starting on the effective date stated in your landlord’s notice.

If your landlord wants to raise it by more — say 5% — they would need to apply to the LTB for approval, unless your unit is exempt from rent control.

Why It Matters

Ontario’s rent control system is designed to balance two things: giving landlords the ability to maintain their properties while protecting tenants from unpredictable price jumps.

In a tight rental market, even a modest increase can impact your monthly budget. That’s why knowing your rights — and the rules your landlord must follow — is so important.

Understanding the 2026 rent increase guideline helps you plan ahead, make informed decisions, and feel confident about your tenancy.

Final Takeaway

Here’s what every Ontario tenant should remember for 2026:

1. The maximum rent increase under the guideline is 2.1%.
2. Your landlord must provide 90 days’ written notice on Form N1.
3. Rent can only go up once every 12 months.
4. Above-guideline increases require Landlord and Tenant Board approval.
5. Some newer buildings (post-2018) are exempt from rent control.

If you’re ever unsure, check the official government website at Ontario.ca/rent-increase-guideline or contact your local tenant support service for advice.

Drewlo’s Commitment: Fair and Transparent Rent Increases

At Drewlo Holdings, we believe in keeping rent increases fair, predictable, and transparent. That’s why we do not raise rent on our new units above the Ontario government’s rent increase guideline — even when certain buildings could legally be exempt.

Our goal is to provide long-term value and stability for our residents. By aligning our rent practices with provincial guidelines, we help tenants confidently plan their budgets and feel secure in their homes.

We’re proud to maintain a reputation built on integrity, comfort, and community — not unexpected rent hikes. Find a Drewlo Apartment or Townhouse that suits your lifestyle.

Stay Informed, Stay Protected

Whether you’re renting an apartment, condo, or townhouse, knowing your rights is the best way to stay in control of your housing situation. Rent increases are a part of life — but they should always follow the law.

If you find this article helpful, share it with friends or neighbours who rent in Ontario so they can understand their rights too.