Ontario 2027 Rent Increase Guideline Is 1.9%: Your N1 Timing Checklist
Ontario's rent increase guideline for 2027 is 1.9 percent. It was published on June 23, 2026 and applies to increases taking effect between January 1 and December 31, 2027. It is down from 2.1 percent in 2026.
The number matters. The timing matters more. Serve your N1 late and you do not get a smaller increase. You get no increase at all for another twelve months.
The 2027 guideline in context
The guideline is the maximum most landlords can raise rent on a rent-controlled unit in a twelve month period without applying to the Landlord and Tenant Board.
It is not arbitrary. Under O. Reg. 516/06, it tracks the Ontario Consumer Price Index, calculated on the average over the twelve months from June of the prior year to May of the current year. The 2027 figure of 1.9 percent reflects Ontario CPI from June 2025 to May 2026, and the decline from 2.1 percent reflects cooling inflation.
On a $2,500 unit, 1.9 percent is $47.50 a month, or $570 over the year. On a ten unit portfolio it is $5,700. Not transformative, but not optional either, particularly when set against the carrying cost pressures we covered in why Ontario landlords are selling.
The date that actually matters: October 3, 2026
An N1 Notice of Rent Increase requires 90 days written notice before the increase takes effect.
For an increase effective January 1, 2027, that means the N1 must be given no later than October 3, 2026.
Miss it and the increase cannot take effect on January 1. Because rent can only be increased once every twelve months, a missed date does not simply push the increase to February. It can cost you the entire cycle. That is the expensive part.
If you are serving by mail, remember that deemed service rules add days. Build in a buffer rather than mailing on October 2 and hoping.
The two rules that void most N1s
Rule one: 90 days notice. Count backward from the effective date, not forward from today. The effective date must be at least 90 days after the notice is given.
Rule two: twelve months since the last increase. The new rent cannot take effect until at least twelve months after the last increase, or twelve months after the tenancy began if there has not been one. Landlords with staggered portfolios get this wrong more often than any other requirement.
Both rules must be satisfied. Satisfying one and missing the other produces a void notice.
Which units the guideline does not apply to
Rent control does not cover everything. The guideline does not apply to:
- Units first occupied for residential purposes on or after November 15, 2018
- Most social housing, certain care homes, and some student accommodation
- Commercial tenancies, which fall outside the RTA entirely
If your unit is exempt, you still must give proper written notice using the N1 and still must respect the twelve month rule. Exempt means exempt from the percentage cap, not exempt from process. This is a distinction landlords routinely get wrong, and getting it wrong invites a T1 application for a rebate of an illegal charge.
When an above guideline increase is worth considering
If 1.9 percent does not cover your reality, an Above Guideline Increase application to the LTB is the formal route. AGIs are typically available for eligible capital expenditures, extraordinary increases in municipal taxes and charges, and certain security services costs.
Two cautions. AGI applications require documentation and take time, so they are a planning exercise rather than a quick fix. And the political climate has shifted: Bill 82, the Protecting Renters from Unfair Above Guideline Rent Increases Act, 2026, is before the legislature and proposes to tighten AGI availability. If you are contemplating an AGI, the landscape is moving and worth watching.
Your N1 checklist for 2027
- Confirm the unit is rent controlled. First occupied before November 15, 2018 means the guideline applies.
- Find the date of the last increase. Confirm twelve months will have elapsed by the effective date.
- Calculate the new rent. Current rent multiplied by 1.019. On $2,500 that is $2,547.50. Round carefully and show your math.
- Use the current Board-approved N1. Since July 1, 2026 the Board requires notices in its approved form. Download fresh, do not reuse.
- Serve by October 3, 2026 for a January 1, 2027 effective date, earlier if mailing.
- Keep proof of service. The date the notice was given is the whole ballgame if the increase is later challenged.
The four mistakes that void an N1
Rent increase notices look simple, which is exactly why they get served carelessly. These are the four failures that show up most often when an increase is later challenged.
Miscounting the 90 days. The 90 days runs from the day the notice is given, not the day you signed it or the day you dropped it in the mail. If you mail the notice, deemed service rules add days to the date it is treated as given. Landlords who mail on the last possible day frequently discover their notice was given too late.
Forgetting the twelve month rule. An increase cannot take effect sooner than twelve months after the previous increase, or twelve months after the tenancy began. Landlords who bought a building mid-year and inherited staggered increase dates are the most common victims of this one. Check the prior increase date for every unit individually rather than assuming a portfolio-wide schedule.
Calculating from the wrong base rent. The guideline applies to the lawful rent, not to rent plus parking, storage, or utilities billed separately. Applying 1.9 percent to a bundled figure inflates the increase and makes the excess an illegal charge.
Using an outdated form. Since July 1, 2026, section 43 of the RTA requires notices to be in the form approved by the Board. A form saved on your desktop three years ago is a risk that did not exist before.
What happens if a tenant disputes the increase
A tenant who believes an increase was improper has two practical routes.
They can simply decline to pay the increased portion, which typically forces the issue into an arrears application where the validity of the N1 becomes the central question. Or they can file a T1 application seeking a rebate of amounts they say were collected illegally.
In either case the analysis is the same and it is documentary. Was the notice in the approved form, was it given at least 90 days before the effective date, had twelve months elapsed, and was the percentage applied to the correct lawful rent. If the answer to all four is yes, the increase stands. If any answer is no, you are usually refunding the difference.
This is why proof of service matters as much as the notice itself. A correctly calculated increase that you cannot prove you served on time is functionally the same as a late one.
Frequently asked questions
What is the Ontario rent increase guideline for 2027?
1.9 percent. It applies to rent increases taking effect between January 1 and December 31, 2027, and was announced on June 23, 2026. It is lower than the 2026 guideline of 2.1 percent.
When do I have to serve the N1 for a January 1, 2027 rent increase?
No later than October 3, 2026. The RTA requires 90 days written notice before the increase takes effect. If you are serving by mail, allow additional days for deemed service and serve earlier.
How much is a 1.9 percent rent increase on $2,500?
$47.50 per month, bringing the rent to $2,547.50. Over twelve months that is $570 in additional rent per unit.
Can I raise the rent more than 1.9 percent in Ontario in 2027?
Only in limited circumstances. If the unit was first occupied on or after November 15, 2018, the guideline cap does not apply. Otherwise you would need to apply to the LTB for an Above Guideline Increase based on eligible capital expenditures, extraordinary tax increases, or certain security costs.
What happens if I miss the 90 day N1 deadline?
The increase cannot take effect on the intended date. Because rent may only be increased once every twelve months, a missed deadline can cost you the entire annual increase rather than merely delaying it. Serve early and keep proof.
The bottom line
1.9 percent is a modest number, and it is easy to treat the N1 as low priority paperwork. That is exactly why so many landlords lose a full year of increase to a date error. The notice is simple. The deadline is not forgiving.
If you have a portfolio with staggered increase dates and you want the N1s served correctly and on time, get in touch. It is a small piece of work that protects a recurring number.