Rent Increase Guidelines (2025–2026)

Ontario sets an annual rent increase guideline that limits how much landlords can raise rent for most residential units without Landlord and Tenant Board approval. For many condo landlords, this is one of the most important rules to get right because timing, notice, and form errors can make a rent increase invalid.

In 2026, the guideline is 2.1%. Ontario also caps the annual guideline at 2.5%, even if inflation is higher.

If your condo is used as a residential rental, this page is a quick reference for what the 2026 rules mean, when rent control applies, and how to serve a valid notice.

Quick Summary

• 2025 guideline: 2.5% for most rent-controlled residential units.
• 2026 guideline: 2.1% for most rent-controlled residential units.
• 12-month rule: Rent can usually only be increased once every 12 months.
• 90-day notice rule: Landlords must usually give at least 90 days’ written notice.
• Correct form required: Most landlords will use Form N1 or N2, depending on the unit.
• Important exception: Some units are exempt from rent control, but not from notice and timing rules.

What the Annual Rent Increase Guideline Means

The annual guideline is the maximum percentage most landlords can raise rent in a year without applying for an above-guideline increase.

• Set by the province: The guideline is announced annually by Ontario.
• Based on inflation: It is tied to Ontario’s Consumer Price Index.
• Subject to a cap: Even if inflation is higher, the annual guideline cannot exceed 2.5%.
• Not automatic in every case: The landlord still has to follow the legal notice rules and timing requirements.

2025 and 2026 Guidelines at a Glance

The 2026 Ontario rent increase guideline applies to rent increases that take effect between January 1, 2026 and December 31, 2026. 

It applies to most private residential rental housing, including condos, apartments, houses, and basement units, unless the unit falls into an exemption.

When Rent Control Does and Does Not Apply

Many condo rentals in Ontario are covered by the annual guideline, but not all of them are.

• Rent-controlled units: Most private residential units are still subject to the annual guideline.
• Post-November 15, 2018 units: Rental units first occupied for residential purposes after November 15, 2018, are generally exempt from the guideline cap.
• Other exemptions: Some community housing, some non-profit co-ops, long-term care settings, and non-residential or commercial spaces fall outside the standard rent control framework.
• Tenant turnover: When one tenant leaves, and a new tenant signs a new tenancy agreement, the landlord can usually set a new starting rent for that new tenancy. The annual guideline limits ongoing increases during a tenancy; it does not cap the initial rent charged to a new tenant. 
• Important reminder: Even if a unit is exempt from rent control, landlords still need to follow the legal notice form and timing requirements.

Notice Rules Landlords Need to Follow

A rent increase is only valid if the correct process is in place. 

• 12 months must pass: In most cases, at least 12 months must have passed since the last rent increase or since the tenancy began.
• 90 days’ notice required: The tenant must usually receive at least 90 days’ written notice before the increase takes effect.
• Proper form required: The notice has to be given using the correct LTB form.
• Mail takes longer: If the notice is sent by mail, landlords need to build in extra delivery time under the LTB service rules.

Which Form to Use: N1 vs. N2

The correct form depends on whether the unit is subject to the guideline.

• N1: Used for most residential units that are subject to the annual guideline.
• N2: Used in situations where the guideline does not apply in the usual way, including some exempt or partially exempt units.
• Required details: The notice should include the tenant’s name, rental address, current rent, new rent, effective date, and landlord information.
• Use the current version: Always download the latest form from the LTB before serving notice.

Common Errors That Can Void a Rent Increase Notice in Ontario

Watch out for these common mistakes landlords make when seeking a rent increase:

• Wrong form: Using N1 when N2 is required, or vice versa.
• Outdated version: Using an old form instead of the current one from the LTB.
• Too little notice: Giving less than the required 90 days.
• Too early: Increasing rent before 12 months have passed.
• Bad math: Miscalculating the increase or entering the wrong rent amount.‍
• Mailing oversight: Forgetting to account for extra service time when sending the notice by mail.