Ontario 2026 Rent Increase Guideline

By Puneet Shroff

Ontario’s rent increase guideline for 2026 has been set at 2.1%. For most rent-controlled residential tenancies, this is the maximum amount a landlord can increase the rent in 2026 without applying to the Landlord and Tenant Board for approval.

For landlords, the percentage is only one part of the process. A rent increase is not automatic. In most cases, the landlord must give the tenant proper written notice, use the correct Landlord and Tenant Board form, and provide at least 90 days’ notice before the increase takes effect. The rent generally cannot be increased more than once every 12 months.

Landlords should also confirm whether the rental unit is subject to rent control. Some newer rental units may be exempt from the annual guideline, but landlords must still follow the proper notice requirements. This distinction is important, particularly for newer condos, purpose-built rentals, basement apartments, and recently completed residential units.

The 2026 guideline also allows landlords to apply for an above-guideline increase in certain limited circumstances, such as eligible capital expenditures or extraordinary increases in municipal taxes and charges. These applications are technical and should be carefully reviewed before proceeding.

Landlords should avoid informal rent increases, verbal agreements, or relying on an incorrect notice period. A defective rent increase can create disputes, arrears issues, or problems if the matter later proceeds to the Landlord and Tenant Board.

Before serving a rent increase notice, landlords should review the tenancy start date, the date of the last rent increase, the lawful rent, whether the unit is rent-controlled, and which notice form applies.

If you are unsure whether your rental unit is subject to the 2026 rent increase guideline, or if you need assistance preparing a rent increase notice or above-guideline increase application, Puneet Shroff can assist with reviewing your options and ensuring the proper process is followed. Contact Puneet at pshroff@sorbaralaw.com.