Ontario's 2027 Rent Increase Guideline Is 1.9%: A Notice Calendar for Small Landlords

If you rent out a basement suite, a condo or a whole house in Durham or Toronto, now is a good time to plan your 2027 rent increases. The Ontario government has set the 2027 rent increase guideline at 1.9%, down from 2.1% in 2026 and 2.5% in 2025 (ontario.ca).

The 90-day notice rule means increases for the first months of 2027 need to be planned now. Here's a plain-language overview of the rules, a notice calendar and a checklist of records to keep.

This is general information, not legal advice. For your specific situation, check with the Landlord and Tenant Board (LTB), a paralegal or a lawyer.

The basic rules

According to the Province of Ontario (Residential rent increases, updated June 23, 2026):

• The 12-month rule: In most cases, rent can go up only if at least 12 months have passed since the last increase or since the tenancy started.
• The 90-day rule: The landlord must give the tenant written notice in the proper form at least 90 days before the increase takes effect. The forms come from the LTB.
• The guideline: For most tenants, rent can't go up by more than the guideline in a year without LTB approval. For 2027, that's 1.9%.
• Tenants can dispute it: If proper notice wasn't given, or the increase is more than allowed, a tenant can dispute it at the LTB within 12 months after the amount was first charged.

The guideline is based on Ontario's Consumer Price Index (June to May data) and is capped at 2.5%.

What 1.9% looks like

The province's own example: on a $1,000 monthly rent, a 1.9% increase is $19, for new rent of $1,019. On a $2,400 suite, it works out to $45.60 a month, or $2,445.60.

Which units the guideline applies to (and which it doesn't)

The guideline applies to most private residential units covered by the Residential Tenancies Act, 2006, including rented houses, apartments, basement apartments and condos.

It does not apply to (ontario.ca):

• new buildings, additions to existing buildings and most new basement apartments first occupied for residential purposes after November 15, 2018
• a new tenancy, where the landlord and new tenant agree on the rent
• community housing, long-term care homes and commercial properties

Landlords can also apply to the LTB for approval to raise rent above the guideline in some cases.

If you think your unit is exempt, the province suggests including a term under section 15 of the lease stating the unit is exempt from the guideline, and keeping records that prove it (see the checklist below). The 12-month rule and written-notice requirements may still apply to exempt units, so check the LTB's guidance before you serve anything.

The forms

The LTB publishes the notice forms on its Forms, Filing and Fees page. The ones small landlords see most often:

• N1, Notice of Rent Increase: the standard notice form
• N2, Notice of Rent Increase (Unit Partially Exempt)
• N10, Agreement to Increase the Rent Above the Guideline: used in limited situations where the landlord and tenant agree to an increase tied to things like added services or capital work

Download the current version from the LTB site each time, rather than reusing an old copy.

How you serve it matters

The LTB's rules say how notices can be given. According to the LTB's guide to serving documents, a notice like the N1 can't simply be posted on the tenant's door. If you send it by regular mail, it's considered served five days after mailing. Hand-delivering it to the tenant counts the same day. Keep a record of how and when you served it.

A notice calendar for early-2027 increases

Here's the minimum timing for increases taking effect in the first half of 2027. These dates are my count of 90 days before the increase date. They're approximate, and counting days can be tricky, so build in a buffer of a couple of weeks and check the LTB's guidance.

If you've missed the window for the date you had in mind, the increase can generally take effect later, as long as the full 90 days' notice is given. The 12-month rule still applies.

Records worth keeping

The province's examples of records that help prove an exemption include (ontario.ca):

• New buildings and additions: building permits, permit applications and plans, occupancy permits, new home warranty documents and documents from the builder
• New units in existing houses (for example, a basement suite): builder documents or contractor invoices, "before and after" photos, and building permits, applications and plans

It's also worth keeping, for every tenancy:

• the signed lease and any section 15 additional terms
• a copy of each rent increase notice, with the date and method of service
• a simple rent ledger showing each increase and the date it took effect

What's happening with rents in the GTA

Rent increases for sitting tenants are capped, but the market rent you can ask on turnover depends on what's happening around you. Urbanation's Q3 2026 report on the Greater Toronto and Hamilton Area (released October 27, 2026) found (Urbanation):

• the vacancy rate for stabilized purpose-built rentals fell to 3.0%, from 3.5% the quarter before
• condo units listed for rent were down 25% from a year earlier
• the share of new purpose-built projects offering incentives fell to 60%, from 67%
• average condo rents rose 2.4% from the previous quarter to $3.83 per square foot ($2,604 for an average 681 sq. ft. unit), while still down 0.6% from a year earlier

Urbanation described it as the start of a rental recovery. If you'll be re-renting a unit in 2027, it's worth checking current comparable rents rather than relying on last year's.

A quick plan for this month

1. List each unit with the tenancy start date and the date of the last increase.
2. Check whether the guideline applies. If you think a unit is exempt, gather your records now.
3. Pick an increase date at least 12 months after the last increase, with at least 90 days' notice plus a buffer.
4. Download the current form from the LTB and fill it in carefully.
5. Serve it properly (not posted on the door), and keep proof of how and when.
6. Set a reminder for next year's cycle.

Thinking about your rental property's next step?

Whether you're holding, adding a unit or thinking about selling an investment property, it helps to know what it's worth today. Message or email me at [email protected] and I'll put together a free Home Value Report for your property. It's my opinion of value based on recent nearby sales, not an appraisal, and there's no obligation. I can also share recent comparable rents for your area.

Andrew Persaud, Sales Representative, REVEL Realty Inc., Brokerage #200B – 1032 Brock Street S, Whitby, ON L1N 4L8 📞 m 416.220.7045 | o 905.357.1700 ✉️ [email protected] 🌐 https://homesbyandrew.ca/

This article is general information about Ontario's residential rent rules, based on public government, Landlord and Tenant Board and industry sources as of November 2, 2026. It is not legal advice. Rules and forms can change, and individual situations vary, so confirm with the Landlord and Tenant Board, a paralegal or a lawyer before giving notice. Dates in the notice calendar are approximate calculations. A Home Value Report is an opinion of value, not an appraisal. Information is believed reliable but not guaranteed. Not intended to solicit buyers or sellers currently under contract with a brokerage.

Sources (checked November 2, 2026)

• Government of Ontario, Residential rent increases (updated June 23, 2026): https://www.ontario.ca/page/residential-rent-increases
• Landlord and Tenant Board, Forms, Filing and Fees (N1, N2, N10): https://tribunalsontario.ca/ltb/forms-filing-and-fees/
• Landlord and Tenant Board, brochure on how to serve documents (service methods for notices; mail deemed served five days after mailing): https://tribunalsontario.ca/ltb/
• Urbanation, "Rental recovery begins: GTHA vacancy and incentives fall" (Q3 2026, Oct 27, 2026): https://www.urbanation.ca/news/rental-recovery-begins-gtha-vacancy-and-incentives-fall