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Raising the rent isn't as simple as sending a text. Ontario has strict rules about how much, how often, and how you notify tenants. Getting it wrong can delay your increase by months — or get your application thrown out entirely.
2026 Rent Increase Guideline
For 2026, Ontario's annual rent increase guideline is 2.5% for rent-controlled properties. This is the maximum you can raise rent without applying to the LTB for an Above Guideline Increase (AGI).
Each year, the Ontario government sets the maximum percentage by which most landlords can increase rent without approval from the Landlord and Tenant Board. For 2026, that number is 2.5%.
| Year | Guideline |
|---|---|
| 2026 | 2.5% |
| 2025 | 2.5% |
| 2024 | 2.5% |
| 2023 | 2.5% |
| 2022 | 1.2% |
This is the #1 question Ottawa landlords ask. Ontario has a two-tier system:
Properties first occupied on or before November 15, 2018. Maximum increase: 2.5% per year. Must use N1 form with 90 days' notice. Covers most older homes, apartments, and condos in Ottawa.
Properties first occupied after November 15, 2018. No maximum increase limit. Still must use N2 form with 90 days' notice. Many new-build condos in Kanata, Orleans, and Barrhaven fall here.
You must give tenants at least 90 days' written notice before the increase takes effect. This is one of the most common mistakes — landlords tell a tenant rent is going up next month, and the increase is legally invalid.
Example: If you serve the N1 on June 15, 2026, the earliest the increase can take effect is September 15, 2026. Serve it July 1? Earliest effective date is October 1.
You can only increase rent once every 12 months. If you raised rent on January 1, 2026, you cannot raise it again until at least January 1, 2027 — even if the tenant moves out and a new tenant moves in. The 12-month clock is tied to the unit, not the tenant.
N1 (Notice of Rent Increase): For rent-controlled properties. Increase cannot exceed the annual guideline (2.5% in 2026).
N2 (Notice of Rent Increase — Unit Not Subject to Rent Control): For properties exempt from rent control. No maximum increase, but must still give 90 days' notice.
Using the wrong form can invalidate your increase. When in doubt, have a property manager review your notice before serving it.
If you believe a 2.5% increase doesn't cover your costs, you can apply to the LTB for an Above Guideline Increase (AGI). This requires proving extraordinary expenses, such as:
AGI applications are complex, require extensive documentation, and often face tenant opposition. Maximum additional increase is typically capped at 3% per year above the guideline over 3 years.
Ottawa Prime Properties manages rent increases, proper form preparation, and tenant communication — ensuring you stay compliant and maximize your rental income.
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