Ontario's 2027 rent increase guideline is 1.9%: what landlords need to know
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 22, 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.