Ontario's 2027 Rent Increase Guideline : What It Means for Landlords and Tenants

Tuesday Jun 30th, 2026

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The Ontario government has announced that the 2027 Rent Increase Guideline will be 1.9%, effective for eligible rent increases in 2027. This is the maximum amount most landlords can increase rent without applying to the Landlord and Tenant Board (LTB) for approval.

The lower guideline reflects easing inflation and continues the recent trend:

  • 2025: 2.5%

  • 2026: 2.1%

  • 2027: 1.9%  
     

How the Guideline Works

For a tenant paying $1,000 per month, the maximum increase would be $19, bringing the monthly rent to $1,019.

A tenant paying $2,500 per month could see an increase of $47.50, for a new monthly rent of $2,547.50.

Landlords must still follow Ontario's rules by:

  • Providing 90 days' written notice using Form N1.

  • Waiting at least 12 months since the tenant moved in or the last rent increase.

  • Ensuring the rental unit is subject to Ontario's rent control rules.

 

Which Properties Are Exempt?
The annual guideline does not apply to every rental property. Common exemptions include:

  • Rental units first occupied after November 15, 2018.

  • Vacant units between tenancies, where landlords can set a new market rent.

  • Certain social and community housing properties.

 

What This Means
For tenants, the 1.9% guideline offers greater predictability and helps keep annual rent increases in line with inflation.

For landlords, it's a reminder to review rental income alongside rising operating costs such as property taxes, insurance, maintenance, utilities, and mortgage expenses. Understanding which properties are exempt and following the proper legal process is essential.

 

How Charissa Realty Can Help
Whether you're a landlord, tenant, or real estate investor, staying informed about Ontario's rental regulations can help you make better decisions.

At Charissa Realty, we're here to help you navigate the changing rental market, understand your rights and responsibilities, and make confident real estate decisions.

If you have questions about the 2027 rent increase guideline or your rental property, contact us Charissa Realty.

 

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