Your Landlord Wants to Raise Rent Above the Guideline — Here Is What You Can Do
Ontario landlords can apply for above-guideline rent increases (AGIs) for capital expenditures, tax hikes, or security costs. This guide explains what an AGI...
Frequently Asked Questions
What is the Ontario rent increase guideline for 2026?
The guideline for 2026 is 2.1%. This is the maximum a landlord can raise rent without LTB approval. The 2027 guideline is 1.9%. The guideline is capped at 2.5% by statute regardless of inflation.
Can my landlord raise rent more than the guideline?
Only with an order from the Landlord and Tenant Board. The landlord must file an L5 application and prove the increase is justified under one of three grounds: capital expenditures, extraordinary tax increases, or increased security services.
What is the maximum above-guideline increase per year?
For capital expenditures and security services, the AGI is capped at 3% above the guideline per year. For 2026, the maximum total increase would be 5.1% (2.1% guideline + 3% AGI). There is no annual cap on tax-based AGIs.
Can I fight an AGI if my building has maintenance problems?
Yes — this is one of the strongest defences available. Under RTA sections 126(12) and 126(13), if the landlord is in serious breach of maintenance obligations, the Board must either dismiss the AGI or freeze the increase until repairs are completed.
Do above-guideline increases expire?
Capital expenditure AGIs have a weighted useful life (minimum 10 years). When it expires, the landlord must reduce the rent by the same percentage the AGI increased it. Check your rent history — you may be entitled to a reduction.
Contact Legal Assist
Legal Assist Paralegal Services — Licensed by the Law Society of Ontario. Serving London, Ontario and Southwestern Ontario. Call 226-272-5153 or email general@legalassist.london for a free consultation.