Navigating rent increases in Ontario can be complex, with specific regulations and forms required for landlords and tenants. Keep reading to find out how much a landlord can legally increase the rent each year and the different rules for rent increases in Ontario.  

Click here to learn more about rent increases in all other provinces, and check out our guide on tenant rights in Ontario. 

Rules for Rent Increases in Ontario

Here’s everything you need to know about rent increases in Ontario, including how much and how often the landlord can increase the rent and what documents they need to provide. 

How Much and How Often Can the Landlord Increase Rent?

In Ontario, the landlord can increase the rent by a maximum of 2.5% every 12 months. They cannot increase it by more than this amount without the approval of the Landlord and Tenant Board. 

The rent increase cap applies to most residential units covered in the Residential Tenancies Act, built before 2018. 

What Is and Isn’t Rent Controlled in Ontario? 

The landlord can only legally increase the rent by 2.5% each year on older residential buildings built before November 15, 2018. They must not increase it any more than this, and they cannot increase it more than once every 12 months. 

Private residential units covered by this rent increase cap include:

• Rented condos, apartments, basement apartments, and houses 

• Mobile homes

• Care homes

• Land lease communities 

However, this 2.5% cap does not apply to new buildings, additions to existing buildings, and most new basement apartments built after November 15, 2018. Community housing units, commercial properties, and long-term care homes are also exempt from the rent increase cap. This means the landlord can increase rent as much or as little as they want. 

Rent Increase in Ontario Notice

The landlord must provide written notice to increase rent in Ontario at least 90 days before the end of the lease, or before they implement the rent increase. They must use Form N1: Notice of Rent Increase, and detail exactly how much the new rent will be and when it will start. 

The landlord must deliver the notice in person, sliding it under the door, or putting it in the mailbox (as long as they don’t need a key to open it). Sending the notice by text or posting it on the door is considered invalid.

Other Ontario Rent Increase Forms

In some circumstances, the landlord can apply to the Landlord and Tenant Board for approval to raise the rent more than 2.5%. They must fill out and serve the tenant Form N10: Agreement to Increase the Rent Above the Guideline. 

Form N2: Notice of Rent Increase (Unit Partially Exempt) is for rental units exempt from the annual increase guideline amount, meaning the landlord can set their own amount. This form should still be given to the tenant at least 90 days before the increase. 

Form N3: Notice to Increase the Rent and/or Charges for Care Services and Meals is used to notify tenants of an increase in rent and/or charges for care services and meals if that is part of the tenancy agreement. 

All Landlord and Tenant Board forms can be found here. 

Photo by Leon Seibert on Unsplash 

How Are Rent Increases Calculated?

The rent increase guideline is calculated every year based on the Ontario Consumer Price Index, which measures inflation and economic conditions. 

Here’s an example of how a 2.5% rent increase can affect your rent after a year:

Let’s say your rent is $2,000 a month, and you’ve reached the end of your 12-month lease. You want to extend it for another year, and the landlord is implementing a 2.5% rent increase. 

A 2.5% increase on $2,000 = $50

$2,000 + $50 = $2,050

Your new rent is now $2,050 per month. 

What Happens If There Is an Illegal Rent Increase In Ontario?

You can contact the Landlord and Tenant Board to see if the unit you are living in has rent control or is exempt. If the landlord tries to increase your rent more than the guideline, you can dispute it with the LTB Ontario. 

If you have paid an illegal rent increase, you can apply to the LTB to get your money back. You must apply within one year of the date your landlord charged the illegal rent. 

Find out more about how to get your money back with this guided pathway for tenants. 

Rent Increase Guidelines Through the Years

Let’s take a look at the rent increase guidelines in Ontario from 2025 back to 2015. 

• 2025: 2.5%

• 2024: 2.5%

• 2023: 2.5%

• 2022: 1.2%

• 2021: 0%

• 2020: 2.2%

• 2019: 1.8%

• 2018: 1.8%

• 2017: 1.5%

• 2016: 2.0%

• 2015: 1.6% 

In 2021, there was a government-imposed rent freeze to help tenants during COVID-19.

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FAQs

What is the 2025 rent increase in Ontario?

The 2025 rent increase guideline is 2.5%. The landlord cannot increase it more than this without the Landlord and Tenant Board’s approval, and they must not increase it more than once every 12 months. 

Can a landlord raise the rent if another person moves in Ontario?

A landlord cannot raise the rent or charge anything extra if a tenant adds another occupant or roommate to the lease. The Ontario Residential Tenancies Act (RTA) does not allow landlords to take any fees, except for the first and last month’s rent, plus any agreed-upon key deposits. 

Who is exempt from rent control in Ontario?

New buildings built and first occupied after November 15, 2018, are exempt from rent control. This means landlords can raise the rent by whatever amount they want.