Ontario Landlord Guide › Can I raise the rent for a new tenant in Ontario?

Can I raise the rent for a new tenant in Ontario?

Last updated October 24, 2026 · Written for small Ontario landlords

Short answer: Yes. When a unit turns over, the rent you and the new tenant agree on becomes the lawful rent, with no guideline limit (Residential Tenancies Act, s. 113). ontario.ca lists units on turnover of a tenancy as one of the places the guideline doesn't apply. From then on the normal rules take over: no increase until 12 months after the tenancy began (s. 119), at least 90 days' written notice on the LTB form (s. 116), and no more than the guideline, 1.9% for 2027 (s. 120), unless the unit is exempt.

Official source: ontario.ca: Residential rent increases · Last checked Oct 2026

This covers units under the Residential Tenancies Act (RTA). If your renter shares your kitchen or bathroom and you live there, the Act doesn't apply; see renting rooms in your home.

What resets at turnover and what doesn't

Rule	New tenant	Section
Starting rent	Whatever you first charge under the new tenancy agreement. The old tenant's rent doesn't limit it.	s. 113
First increase	Not until 12 months after the date the unit was first rented to this tenant.	s. 119(1)
Notice	At least 90 days' written notice in the LTB's form (usually the N1). Without it, the increase is void.	s. 116(1), (3), (4)
How much	No more than the guideline, which is 1.9% for 2027, unless the LTB approves more or an exception applies.	s. 120(1); ontario.ca
Units first occupied after November 15, 2018	The guideline cap doesn't apply, but the 90-day notice and 12-month rules still do.	s. 6.1; ontario.ca

Four ways this goes wrong

An assignment isn't a new tenancy. If the tenant assigns the lease, the new person takes it on the same terms (s. 95(8)), and the guideline still limits increases to an assignee (s. 120(1)). You can't use the assignment to reset the rent. See can a tenant break a lease early.
Ending a tenancy so you can re-rent higher. If you give an N12 for your own or a family member's use and then advertise the unit or rent it to someone else at any point from the day you gave the notice until one year after the tenant moves out, the LTB presumes the notice was given in bad faith (s. 57(5), (6)). See the N12 guide.
A "first month free" that doesn't follow the rules. A rent-free period of up to three months' rent in a 12-month period leaves the lawful rent at the full amount only if it meets the prescribed conditions (s. 111(2.1)). Those include a written agreement and no more than one month's discount in any one rental period (O. Reg. 516/06, s. 10(1)). If a discount falls outside the rules, the lawful rent is worked out by a formula in the regulation (s. 111(3); O. Reg. 516/06, s. 12), and it can come out lower than the rent you advertised. That lower figure is the base for every future guideline increase.
A higher rent for the first month only. If the first month's rent is higher than the rest, the lawful rent for each month, including the first, is the average of the other months in the 12-month period (s. 111(4); O. Reg. 516/06, s. 13). The extra charged in month one is above the lawful rent.

A prompt-payment discount of up to 2% doesn't change the lawful rent (s. 111(2)). If an LTB order that stops you from raising the rent is in effect for the unit, you must give the new tenant written notice of the lawful rent on the LTB's form before you sign the agreement (s. 114).

Worked example

Your tenant pays $1,850 a month and moves out on Monday, November 30, 2026. You advertise at $2,100 and a new tenant signs a one-year lease starting Tuesday, December 1, 2026.

$2,100 is the lawful rent from December 1, 2026 (s. 113). The $250 jump from the old rent isn't limited by the guideline.
The earliest increase is Wednesday, December 1, 2027, 12 months after this tenant first rented the unit (s. 119(1)).
At 1.9%, the most it can go up is $39.90, to $2,139.90 a month, unless the unit is exempt or the LTB approves more.
90 days before December 1, 2027 is Thursday, September 2, 2027. Give the N1 earlier than that to be safe, for example by Tuesday, August 31 in person. A mailed notice counts as given on the fifth day after mailing (s. 191(3)), so mail it by Thursday, August 26, 2027.

For the rest of the increase rules, see the 2027 rent increase guideline and how much can I raise the rent in 2027.

Where the toolkit helps: The toolkit's Rent & Expense Tracker records each unit's monthly rent and start date and includes a rent-increase guideline lookup, so you can see when a new tenant's first 12 months are up. See what is inside the $19 toolkit

Mistakes to avoid

Raising the rent in the first year because the tenant is new. The 12 months run from the day they first rented the unit (s. 119(1)).
Skipping the N1 because the increase is small or the unit is exempt from the guideline. No proper notice means the increase is void (s. 116(4)).
Promising free months without a written agreement. Put any rent-free period and its conditions in writing (O. Reg. 516/06, s. 10(1)).
Treating a new occupant as a new tenant when they are really an assignee. Same lease, same rent (s. 95(8)).

Official sources

Not legal advice. This site is general information written by a small Ontario landlord, based on official Ontario and Tribunals Ontario sources as of October 24, 2026. Laws and LTB forms change; check the linked official source before you act, and talk to a lawyer or licensed paralegal (or call the LTB at 1-888-332-3234) about your situation. Not affiliated with the Government of Ontario, Tribunals Ontario or the Landlord and Tenant Board. Full disclaimer.