The guideline. The rent increase guideline for 2027 is 1.9% and for 2026 is 2.1%. The guideline is the maximum a landlord can increase most tenants' rent during a year without the approval of the Landlord and Tenant Board. It is calculated using the Ontario Consumer Price Index, using data from June to May to determine the guideline for the following year, and it is capped at 2.5%.
What the guideline does not cover. The guideline does not apply to new buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018; to rental units upon turnover of a tenancy, where the landlord and a new tenant agree on the rent amount; to community housing units; to long-term care homes; or to commercial properties.
Timing and notice. In most cases, the rent for a residential unit can be increased only if at least 12 months have passed since the last rent increase, or since the date the tenancy began. The landlord must give a tenant written notice of a rent increase in the proper form (Form N1, Notice of Rent Increase) at least 90 days before it takes effect. The proper forms are available from the Landlord and Tenant Board.
Worked example from the official page. A monthly rent of $1,000 under a lease signed June 1, 2026 could lawfully increase 12 months later, on June 1, 2027. The guideline for 2027 is 1.9%, so an increase of 1.9% on $1,000 is $19.00, and the rent following the increase would be $1,019.00 per month, with written notice given at least 90 days before June 1, 2027.
Sources: Government of Ontario, Residential rent increases (Ontario.ca) and Renting in Ontario: Your rights (Ontario.ca), each opened at build time. No figure on this page comes from anywhere else. Where a figure could not be verified on an opened official page, this page says to check the official page instead of stating it.