Rent control in Ontario: the 1.9% guideline for 2027, and which units it covers

The guideline for 2027 and 2026

Each year Ontario sets the most that rent can rise, for most tenants, in the following year. It's based on inflation and capped at 2.5%.

The guideline limits increases for a sitting tenant. It doesn't limit the rent you set when a new tenant moves in. That's set by the market, which is why pricing is the first step of our tenant placement service.

Which units have rent control, and which are exempt

Units in new buildings, additions to existing buildings and most new basement apartments that were first lived in after November 15, 2018 are exempt from the guideline. For those units, the yearly cap doesn't apply.

That covers many newer GTA condos, including most towers finished since 2019, and many newly built second units. If you're not sure when your unit was first occupied, check the building's completion date or your permit records.

Exempt units still follow the other rules below: 12 months between increases and 90 days' written notice.

The 12-month rule

Rent can usually go up only once every 12 months: at least 12 months after the last increase, or after the tenant moved in. A tenant who moved in on March 1, 2026 can first see an increase on March 1, 2027.

90 days' written notice

You have to give the tenant written notice at least 90 days before the increase takes effect, on the Landlord and Tenant Board's form. For most units that's the Notice of Rent Increase (Form N1); units that are partly exempt use Form N2.

Count the 90 days carefully and leave a few extra for delivery. An increase without proper notice doesn't take effect, and you'd have to start the 90 days again.

Increases above the guideline

In some cases a landlord can apply to the Landlord and Tenant Board for approval to raise the rent by more than the guideline, for example after major repairs or renovations, or an unusually large rise in municipal taxes. It takes an application and the Board's approval; it isn't automatic.

Setting the rent for a new tenant

When a unit is empty between tenants, you and the new tenant agree on the rent. The guideline only applies from then on. That makes the starting rent the most important number in the whole tenancy: every later increase is a percentage of it.

Price $100 a month too low and you lose $1,200 in the first year, and more in every year after. Price too high and the unit sits empty: at $2,500 a month, each empty week costs about $575.

What it means for your rent deposit

The guideline is also the interest rate you owe on a tenant's rent deposit each year. When the rent goes up, you can keep that interest to top up the deposit so it still matches a full month. Our rent deposit guide shows the math.

Pricing in today's market

Asking rents across Ontario were down 4.8% from a year earlier in September 2026, according to Rentals.ca and Urbanation. Whichever way the market is moving, a unit priced against last year's listings either sits or leaves money on the table; one priced against today's listings rents. We check what comparable units are listed at, and what they actually rent for, before suggesting a price.

Sources

• Government of Ontario, Residential rent increases (updated June 23, 2026)
• Landlord and Tenant Board, A Guide to the Residential Tenancies Act (December 2020)
• CP24, Average asking rents fall 4.2% in September, marking 24 months of decreases (October 7, 2026, citing Rentals.ca and Urbanation)
• CLEO, Deposits (January 2025)