Ontario Rent Increase Capped at 2.1% for 2026; Tenant Rights Explained
Ontario landlords can raise rent by no more than 2.1% in 2026—the lowest guideline in four years—and must give 90 days written notice. Bill 60 also accelerated eviction timelines for non-payment, requiring newcomers to understand their rights at the Landlord and Tenant Board.
For rent-controlled units in Ontario (those first occupied before November 15, 2018), landlords may only raise rent once every 12 months, must give 90 days' written notice, and cannot exceed the provincial rent increase guideline—set at 2.1% for 2026—without Landlord and Tenant Board (LTB) approval. This is the lowest annual increase in four years, reflecting broader cooling in Ontario's housing market.
Units exempt from rent control
Units first occupied after November 15, 2018 are exempt from rent control. This means if your unit is in a newer building or was newly completed after that date, your landlord can raise rent by any amount with proper notice. Check your lease or tenancy agreement to determine your unit's first-occupancy date—this is the single most important factor in understanding your rent-increase rights.
Key tenant protections under the RTA
A landlord cannot evict you without a valid legal reason and a formal LTB order—an eviction notice alone does not end your tenancy. You have the right to a hearing before any eviction can be enforced. Security deposits and damage deposits are illegal in Ontario—landlords can only collect first and last month's rent plus a refundable key deposit. If your landlord requests any other upfront fee (cleaning, application, damage deposit), refuse and report them to the LTB.
Changes under Bill 60 (2026)
Bill 60, which became law in 2026, accelerated the eviction process for non-payment of rent. Accelerated N4 eviction filings now begin after just 7 days of non-payment (previously 14 days for monthly tenants). This means if you fall behind on rent, you must act quickly—contact your landlord or seek legal advice within days, not weeks. Additionally, the appeal window for LTB decisions has been shortened to 15 days to reduce protracted disputes.
Practical guidance for newcomers
When you sign a lease in Ontario, ensure it uses the standard RTA lease template (required since April 2018). Keep copies of all rent receipts and correspondence with your landlord. If you receive an N1 notice of rent increase, verify the amount does not exceed 2.1%, and check that 90 days' notice was given (count from the date the notice was served, not from when you read it). If your rent increase is illegal, file a T1 application with the LTB (filing fee $53, or $48 online at tribunalsontario.ca). Do not ignore eviction notices; even if you believe the eviction is illegal, you must file a defense at the LTB to protect your right to a hearing.
Sources
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