If you’re a condo owner or landlord in Ontario, you’ve probably wondered: how much rent can I increase in a year? Whether you own a downtown Toronto condo, a semi-detached in Mississauga, or a basement suite in Brampton, it’s important to understand the rules around rent increases. In this blog, we break down the guidelines in plain Canadian English so you can stay compliant and make smart rental decisions.
Rent Control in Ontario: The Basics
In Ontario, most residential rental units are covered by rent control rules under the Residential Tenancies Act (RTA). This includes:
- Condominiums
- Detached homes
- Semi-detached homes
- Basement apartments
- Townhouses
However, the year the unit was first occupied can affect whether it’s subject to rent control. We’ll explain more below.
The 2024 Ontario Rent Increase Guideline
For 2024, the Ontario government has capped rent increases at 2.5% for rent-controlled units. This is the maximum a landlord can raise the rent without applying to the Landlord and Tenant Board (LTB) for special permission.
This 2.5% guideline applies from January 1 to December 31, 2024, and is the same for 2025 unless updated by the government.
Which Properties Are NOT Under Rent Control?
If your residential unit was first occupied after November 15, 2018, then it is not subject to rent control.
This means:
- You can increase rent by any amount.
- You still need to give the proper notice period.
Example:
You own a condo unit that was built and first rented in 2020. You are legally allowed to increase the rent more than 2.5% per year. However, it’s still wise to remain competitive with market rates.
Proper Notice for Rent Increases
Regardless of whether your unit is under rent control, you must:
- Provide 90 days’ written notice to the tenant.
- Use the official N1 Form (Notice of Rent Increase) available on the LTB website.
- Only increase rent once every 12 months.
This applies to both rent-controlled and non-rent-controlled units.
What Happens If You Raise Rent Too Much?
If your unit is under rent control and you increase the rent more than 2.5%, the tenant can:
- Refuse to pay the excess.
- File a complaint with the Landlord and Tenant Board.
You could be ordered to repay the overcharged rent or face penalties.
Can You Apply for a Higher Rent Increase?
Yes. As a landlord, you can apply to the Landlord and Tenant Board (LTB) for a “Above Guideline Increase (AGI)” if:
- You’ve done significant capital improvements (e.g., new roof, plumbing upgrades).
- Municipal taxes or utilities have increased dramatically.
However, this process involves paperwork, documentation, and tenant notice. It’s not automatic.
Can You Raise Rent Between Tenants?
Yes. When a tenant moves out, you can set a new rent price for the incoming tenant, regardless of the previous rent amount. This is your chance to adjust your rental rates to match market value.
Just remember:
- The new rent must be agreed to in writing.
- Once the new tenant signs the lease, regular rent control rules resume (if applicable).
Tips for Condo and Home Owners
1. Know If Your Unit is Exempt from Rent Control
Check your condo’s registration date or when your property was first occupied. If it’s post-November 15, 2018, you have more flexibility.
2. Stay Competitive with Market Rates
Even if you’re allowed to raise rent beyond the guideline, pricing too high may lead to longer vacancies. Research similar listings in your area on websites like Realtor.ca or Zumper.
3. Communicate with Tenants
Clear, respectful communication builds trust and long-term tenancies. Give plenty of notice and explain why you’re increasing rent—especially if you’ve made upgrades or your costs have risen.
4. Keep Good Records
Document rent amounts, notice letters, lease terms, and any repairs or capital expenses. This is crucial if your tenant disputes the increase.
5. Stay Informed
Each year, the Ontario government announces the new rent increase guideline. Stay updated via the Ontario Government’s website.
What About Utilities and Parking?
If utilities (like hydro, water, or gas) are included in the rent, you cannot start charging separately unless the tenant agrees.
However, if the lease already separates these charges, you can adjust them as long as:
- The increase aligns with actual cost increases.
- You’ve clearly outlined the charges in the lease.
The same goes for parking fees.
Ontario’s Economic Context in 2025
Due to U.S. tariffs and growing economic uncertainty, the Ontario government has implemented support measures for businesses and workers, including a six-month tax deferral program and rebates through WSIB.
While these don’t directly impact rent limits, they reflect the broader economic environment, encouraging property owners to be fair and reasonable with increases. In a competitive rental market, keeping tenants happy can be more valuable than maximizing short-term rent.
Summary: How Much Can You Raise Rent in Ontario?
| Situation | Max Rent Increase |
| Rent-controlled unit (pre-Nov 15, 2018) | 2.5% per year |
| Non-rent-controlled unit (post-Nov 15, 2018) | No cap, but 90-day notice still required |
| Between tenants | No cap |
Final Thoughts
If you’re a landlord or condo owner asking, “how much rent can I increase in Ontario each year?”—the answer depends on when your unit was first occupied. For most landlords, the 2.5% cap applies. For newer units, there’s more flexibility, but you still need to follow Ontario’s notice rules.
Being informed, transparent, and fair not only keeps you on the right side of the law but also helps you build long-term, profitable tenant relationships.
Sources:
- Residential Tenancies Act (RTA)
- Landlord and Tenant Board Ontario
- Government of Ontario (Rent Increase Guideline 2024/2025)
- WSIB and Ministry of Finance Bulletins