Ontario’s rent increase guideline for 2027 is 1.9%, down from 2.1% in 2026. That is the most a landlord can raise the rent for a sitting tenant in a rent-controlled unit without approval from the Landlord and Tenant Board. If you rent out a basement suite or a whole bungalow and want an increase to take effect early in 2027, the notice has to go out this fall.
Key takeaways
- The 2027 guideline is 1.9%. The 2026 guideline is 2.1%.
- You need 90 days’ written notice on the proper form.
- Rent can go up only once every 12 months.
- Units first occupied after November 15, 2018 may be exempt from the guideline.
- Asking rents have been flat in 2026, so price increases with the market in mind.
What 1.9% looks like in dollars
| Current monthly rent | Maximum increase | New rent |
|---|---|---|
| $1,600 | $30.40 | $1,630.40 |
| $1,900 | $36.10 | $1,936.10 |
| $2,300 | $43.70 | $2,343.70 |
| $3,200 | $60.80 | $3,260.80 |
The notice rules
- Give at least 90 days’ written notice using the Landlord and Tenant Board’s Form N1.
- At least 12 months must have passed since the last increase or since the tenancy began.
- The guideline that applies is the one for the year the increase takes effect. An increase effective February 1, 2027 uses 1.9% and needs notice by early November 2026.
- An increase that does not follow the rules is void, and you have to start again.
Is your suite exempt from the guideline?
Rent control does not apply to every unit. Generally, a unit is exempt from the guideline if it was first occupied for residential purposes after November 15, 2018. That includes many new builds and can include a new basement apartment added to an existing house after that date, if specific conditions are met.
This matters to bungalow owners who created a suite recently. If your unit is exempt, the 1.9% cap does not apply, but the 90-day notice and once-a-year rules still do. Because the conditions are detailed, confirm your unit’s status before relying on the exemption.
Between tenants, rent resets
Ontario has vacancy decontrol. When a tenant leaves and a new one moves in, you can set the rent at whatever the market will bear. The guideline applies again from there.
Read the market before you raise
Average asking rents in Ontario were close to flat through the first half of 2026, at roughly $2,230 a month, and analysts expected continued softness given higher unemployment. A good tenant who pays on time is worth more than a small increase. Some landlords are choosing a smaller raise, or none, to keep a reliable tenant in place.
Bungalow tip: If you live upstairs and rent the basement, your tenant is also your neighbour. A short conversation before the formal notice arrives goes a long way.
Above-guideline increases
Landlords can apply to the Board for an above-guideline increase after major capital work, such as a new roof or furnace, or an extraordinary rise in municipal taxes. The process is paperwork-heavy and capped, and for a single basement suite it is rarely worth it. Plan capital costs into your budget instead.
Frequently asked questions
Can I raise the rent if utilities went up?
Not beyond the guideline for a rent-controlled unit. Natural gas rates changed on October 1, 2026, so check your bills and consider how utilities are split in your next lease.
What if my tenant agrees to a bigger increase?
There is a formal process for agreed increases tied to new services or capital work, with its own form and limits. A casual agreement above the guideline is not enforceable.
What changed for landlords this fall?
Several rules changed on September 21, 2026. See Ontario’s new rental rules.
Running the numbers on a rental bungalow?
Read how to run the numbers on a bungalow investment, then browse bungalows for sale with a separate entrance.
This article is general information as of early October 2026, not legal, tax, mortgage or insurance advice. Rules and numbers change, so confirm the details for your situation with a licensed professional.
