Rent Control in Ontario: What Landlords Need to Know

Rent control is one of the most misunderstood parts of being an Ontario landlord. The short version: most units have a yearly cap on rent increases, but units first occupied after November 15, 2018 are exempt. Getting this right matters — a single illegal increase can land you at the Landlord and Tenant Board. Here's how rent control actually works in 2026.

Key takeaways

• The 2026 rent increase guideline is 2.1% for units covered by rent control.
• Units first occupied on or before November 15, 2018 are covered; units first occupied after that date are exempt from the guideline.
• Rent can only rise once every 12 months, with 90 days' written notice using Form N1.
• Rent control caps increases for existing tenants — it does not cap the rent you set for a brand-new tenant.
• All rent disputes are decided by the Landlord and Tenant Board under the Residential Tenancies Act.

What rent control means in Ontario

Rent control limits how much a landlord can increase rent for an existing tenant during a tenancy. Each year the province publishes a rent increase guideline — the maximum percentage most landlords can apply without special approval. For 2026 the guideline is 2.1%.

Crucially, rent control does not cap what you charge a new tenant. When a unit becomes vacant and you sign a fresh lease, you and the new tenant agree on the starting rent. The cap only governs increases once someone is living there. This is part of the bigger picture in our pillar guide, how to become a landlord in Ontario.

The 2018 exemption — the part landlords miss

Ontario created a major exception in 2018. Units that were first occupied as a residential rental on or after November 15, 2018 are exempt from the annual guideline. For these newer units, there's no percentage cap on the annual increase — though you must still give proper notice and can still only raise rent once every 12 months.

Know which side of the line your unit falls on

If the unit was first occupied on or before November 15, 2018, the 2.1% guideline applies. If it was first occupied after that date, the guideline does not apply. Confirm your unit's status before issuing any increase.

The rules every increase must follow

Whether or not the guideline applies, two rules always hold for residential tenancies in Ontario:

1. Rent can increase only once every 12 months for the same tenant.
2. You must give at least 90 days' written notice using Form N1 before the increase takes effect.

For a worked example of how these increases add up for a tenant, see how much a landlord can raise rent in Ontario.

Above-guideline increases

For units covered by rent control, the only way to exceed the annual guideline is to apply to the Landlord and Tenant Board for an above-guideline increase — for example, after major capital repairs or a large jump in property taxes or utility costs. The LTB reviews and approves these case by case; you cannot simply charge more on your own.

Disputes go to the LTB

The Landlord and Tenant Board administers the Residential Tenancies Act and decides rent disputes, including above-guideline applications. There is no 'self-help' route around the guideline.

What this means for your strategy

Because the starting rent for a new tenant isn't capped, setting it correctly at the outset matters more than ever — especially on guideline-covered units where future increases are limited to 2.1%-ish each year. Our guide to setting the right rent price shows how to price competitively without underselling. And since margins can be tight under rent control, it's worth reading whether being a landlord is worth it before you buy.

Investing in a rental? Get the industry's highest Cashback Rebate

HOMEH is a licensed Ontario brokerage offering eligible buyers the industry's highest Cashback Rebate on a purchase — capital that goes straight toward your investment. Explore income properties on HOMEH listings or list a finished rental on the HOMEH landlords page.