TORONTO, July 7, 2026 – The Ontario government has announced the 2027 rent increase guideline for residential tenancies at 1.9 per cent. The guideline applies to most rent-controlled residential units covered by the Residential Tenancies Act and sets the maximum amount a landlord can raise rent in 2027 without applying to the Landlord and Tenant Board for approval.
The guideline applies to rent increases that take effect between January 1 and December 31, 2027. It covers most private residential rental units, including rented houses, semi-detached homes, basement units, apartments, rented condominium units, care homes, mobile homes and land lease communities. For long-term tenants, low-income households, newcomers and student renters, the 1.9 per cent figure does not mean every rent increase is automatically legal. Notice, timing and the type of unit must still meet legal requirements.
In Ontario, landlords usually must give tenants written notice at least 90 days before a rent increase and use the correct form. In most cases, at least 12 months must also have passed since the tenant moved in or since the last lawful rent increase. If a landlord gives notice by text message, verbally or through an informal note, tenants should first check whether the notice meets legal requirements.
Tenants also need to determine whether their unit is rent-controlled. Ontario information says some new units, additions and many new basement units first occupied for residential purposes after November 15, 2018, may be exempt from rent control. This means that even though the provincial guideline is 1.9 per cent, rent increases for those units may not be limited by that percentage. However, landlords must still follow the required notice and timing rules.
A common misunderstanding among Chinese tenants and newcomer families is focusing only on the date the lease was signed, while overlooking when the unit was first used as a residence. When determining whether a unit is rent-controlled, the key date is not necessarily when the current tenant moved in, but when the unit was first occupied for residential use. Residents renting new condominiums, newly renovated basement units or rooms in detached homes should keep their lease, advertisement screenshots, move-in records and landlord notices in case they need to verify details during a dispute.
If a landlord applies for a rent increase above the guideline, it does not mean the tenant must immediately accept it. Certain repairs, capital expenditures or changes in taxes may be grounds for a landlord to apply to the Landlord and Tenant Board for an Above Guideline Increase, but the application must go through the required process. Tenants who receive related documents should pay attention to the hearing date, the reasons for the application and any evidence they may submit.
For landlords, the announced guideline also means 2027 rent arrangements should be planned in advance. Using the wrong form, giving insufficient notice or choosing a non-compliant rent increase date may make the increase invalid. For tenants, after receiving a 2027 rent increase notice, they should not only check whether the increase is 1.9 per cent, but also review the form, dates, unit type and the timing of the last rent increase.（LJI by Yuanyuan）
