The Ontario government has set the 2026 rent increase guideline at 2.1%, which applies to approximately 1.4 million rental households covered by the Residential Tenancies Act. This is the maximum amount most landlords can raise rent without applying to the Landlord and Tenant Board for an above-guideline increase.
How the Guideline Is Calculated
Ontario's annual rent increase guideline is based on the Ontario Consumer Price Index (CPI), capped at a maximum of 2.5%. The 2.1% guideline for 2026 reflects moderate inflation levels and provides a balance between tenant protection and landlord cost recovery.
Who Is Covered
The guideline applies to most rental units that were first occupied before November 15, 2018. Units first occupied after this date are not subject to rent control — landlords of newer units can raise rent by any amount with 90 days' written notice.
What This Means for Tenants
If you're renting a rent-controlled unit, your landlord can increase your rent by a maximum of 2.1% in 2026. For a tenant paying $2,000/month, this means a maximum increase of $42/month. Your landlord must provide at least 90 days' written notice using the proper form (N1 or N2).
What This Means for Landlords and Investors
For property investors, the rent increase guideline is a key factor in calculating returns. With rising insurance, property taxes, and maintenance costs often exceeding 2.1%, some landlords may apply for above-guideline increases to cover capital expenditures.
Toronto's Renoviction Protections
In Toronto specifically, the Rental Renovation Licence By-Law requires landlords issuing an N13 notice (to renovate or demolish) to obtain a Rental Renovation Licence. This prevents "renovictions" — where landlords evict tenants under the guise of renovations to raise rents.
Whether you're a tenant understanding your rights or an investor calculating returns, knowing the rent increase rules is essential. Contact us for guidance on rental properties.