Ontario’s 2027 rent increase guideline: 1.9%
Ontario has set the 2027 rent increase guideline at 1.9%. That's the most a landlord can raise the rent for most existing tenants during 2027 without approval from the Landlord and Tenant Board. Here's how it works.
This is general information, not legal advice. Check the Government of Ontario's rent increase page for the official rules.
Recent guidelines
- 2027: 1.9%
- 2026: 2.1%
- 2023 to 2025: 2.5% each year
The guideline is based on Ontario's Consumer Price Index and is capped at 2.5%.
The rules for a rent increase
- 90 days' written notice. You must give the tenant at least 90 days' written notice before the increase takes effect, using the proper Landlord and Tenant Board form.
- Once every 12 months. At least 12 months must have passed since the tenant's last increase, or since the tenancy started.
- Within the guideline. The increase can't be more than the guideline for that year unless the Board approves a larger one.
Example: a tenant pays $2,000 a month and their last increase took effect on June 1, 2026. The earliest the next increase can take effect is June 1, 2027, at most 1.9%, which is $38, making the new rent $2,038. Written notice must reach the tenant at least 90 days before June 1.
Units that are exempt
Rental units first occupied for residential purposes after November 15, 2018 are generally exempt from the guideline. For those units, the landlord can raise the rent by more than the guideline, but the 90-day notice and once-every-12-months rules still apply.
Increases above the guideline
In some cases, such as major capital repairs or big increases in municipal taxes, a landlord can apply to the Landlord and Tenant Board for an above-guideline increase. That's a Board process; you'll want a licensed paralegal or lawyer to help with it.
Common mistakes
- Giving notice too late, or not on the proper form. The increase can be invalid.
- Raising rent less than 12 months after the last increase.
- Forgetting that a rent deposit must earn interest each year, generally at the guideline rate.
How we help
For the properties we manage, we keep a record of every tenant's rent and the date of their last increase, and remind you well before a notice deadline so you can decide what to do. See what our property management includes.