Use the guideline for the effective year

Ontario's guideline is tied to the year the increase takes effect, not necessarily the year the notice arrives. Ontario lists a 2.1% guideline for 2026 and 1.9% for 2027. Always verify the effective year against the current Ontario page because a future announcement can change the default used by a calculator.

For a rent-controlled unit, the basic arithmetic is current monthly rent multiplied by one plus the guideline percentage. An increase above the guideline is not automatically valid because it appears on a notice. It may require a Landlord and Tenant Board order or involve a special situation that this guide cannot decide.

Confirm rent-control status

New buildings, additions to existing buildings, and most new basement apartments first occupied for residential purposes after November 15, 2018 are generally exempt from Ontario's rent increase guideline. The relevant fact is when the rental space was first occupied for residential purposes, not simply when the current tenant moved in.

A first-occupied date can be disputed or fact-specific. "Not sure" is a meaningful answer. Gather evidence and use an Ontario legal or tenant resource before treating the guideline comparison as a legal conclusion.

Check the timing and form

  • The landlord generally must give at least 90 days' written notice.
  • The proper Landlord and Tenant Board notice form must be used for the situation.
  • At least 12 months generally must have passed since the tenancy began or since the last rent increase.
  • The effective date and current lawful rent should match the tenancy records.
  • Separate charges, discounts, utilities, parking, and services may require their own analysis.

Do the three-number check

  1. Calculate the proposed percentage from the old and new monthly rent.
  2. Compare that percentage with the guideline for the effective year.
  3. Calculate the monthly and annual dollar increase for the household budget.

A percentage comparison only identifies a question. It does not validate service of the notice, decide an exemption, review an above-guideline application, or determine the lawful rent.

Questions to keep with the notice

  • When was the unit first occupied for residential purposes?
  • When did the last increase take effect?
  • Which form was served, on what date, and how?
  • Does the notice mention an above-guideline order or application?
  • Are any discounts or separate charges affecting the apparent monthly rent?

Official sources