Ontario Rent Increase Guideline 2025
Ontario landlords can only increase rent once every 12 months, and the increase is capped at the government's annual Rent Increase Guideline — unless an above-guideline increase (AGI) is approved by the LTB. For 2025, the guideline is 2.5%.
Guideline History
| Year | Guideline % |
|---|---|
| 2021 | 0% |
| 2022 | 1.2% |
| 2023 | 2.5% |
| 2024 | 2.5% |
| 2025 | 2.5% |
Proper Notice Requirements
A landlord must give at least 90 days' written notice before the increase takes effect, using the N1 form (Notice of Rent Increase). The notice must:
- State the new rent amount and percentage increase.
- State the date the increase takes effect (must be the first day of a rental period).
A defective N1 (wrong date, insufficient notice period) can be challenged at the LTB.
Units Exempt from the Guideline
Units first occupied for residential purposes after November 15, 2018 are exempt from rent control. Landlords of these units can raise rent by any amount with proper 90-day notice. This is a major exception and affects most newly built units.
Above-Guideline Increases (AGI)
Landlords can apply for an AGI (Form L5) if they have incurred extraordinary increases in:
- Operating costs (municipal taxes, utilities) of more than 50% above the guideline.
- Capital expenditures for major renovations or new services.
AGI applications are heard by the LTB and tenants receive notice and an opportunity to object. AGIs can add 3%+ per year above the guideline.
What Tenants Can Do
- File a T1 application (illegal rent increase) if the landlord increased rent above the guideline without an AGI order.
- Challenge a defective N1 notice.
- Participate in AGI hearings to object.
Received a rent increase above the guideline? We can help you fight it.
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