Ontario's 2027 rent increase guideline is 1.9%: what landlords need to know
Short answer: The 2027 rent increase guideline in Ontario is 1.9%, so $1,000 rent can go up by $19 to $1,019. You need at least 90 days' written notice and 12 months since the last increase, and new buildings, additions and most new basement apartments first occupied after November 15, 2018 are not covered by the guideline.
Ontario set the 2027 rent increase guideline at 1.9%, down from 2.1% in 2026. It's the most you can raise most tenants' rent in 2027 without LTB approval.
The rules
- Once every 12 months: at least 12 months since the tenancy began or since the last increase.
- At least 90 days' written notice on the proper LTB form (usually the N1; see the LTB forms page).
- No more than the guideline unless the LTB approves an above-guideline increase or there's a valid agreement (for example an N10 for certain improvements).
- If the notice is wrong, the tenant can dispute the increase at the LTB within 12 months after it was first charged.
Worked example (from ontario.ca)
A lease starts June 1, 2026 at $1,000. The earliest increase is June 1, 2027. With 1.9%, the new rent is $1,019. The notice must reach the tenant at least 90 days before June 1, 2027, so by early March 2027. Add 5 days if you mail it.
Who the guideline does NOT apply to
- New buildings, additions, and most new basement apartments first occupied for residential purposes after November 15, 2018 (but the 12-month and 90-day notice rules still apply).
- A new tenant at turnover: you and the new tenant agree on the starting rent.
- Community housing, long-term care, commercial property.
- Rooms where the RTA doesn't apply at all, such as a renter sharing a kitchen or bathroom with you as the owner living there. See renting rooms in your home.
If you rely on the post-2018 exemption, ontario.ca suggests adding a section 15 term to the standard lease saying the unit is exempt, and keeping proof such as building permits, contractor invoices and before-and-after photos.
Recent guidelines
| Year | Guideline |
|---|---|
| 2027 | 1.9% |
| 2026 | 2.1% |
| 2025 | 2.5% |
| 2024 | 2.5% |
| 2023 | 2.5% |
| 2022 | 1.2% |
The guideline is based on Ontario CPI and capped at 2.5%.
Don't forget: interest on last month's rent deposit
If you hold a rent deposit, you owe the tenant interest every year at the guideline rate (1.9% for 2027). When rent goes up, you can ask the tenant to top up the deposit to match. Many landlords simply apply the interest toward the deposit top-up. Check the LTB's Guide to the RTA for the details.
The toolkit's Rent & Expense Tracker has a guideline lookup (2.1% 2026 / 1.9% 2027), a rent ledger with a running balance, and CRA T776 expense categories.
Official sources
- ontario.ca: Residential rent increases
- LTB forms
- LTB: A Guide to the Residential Tenancies Act
- ontario.ca: Guide to Ontario's standard lease
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 23, 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.