L5 Form: How to Apply for an Above-Guideline Rent Increase in Ontario

The L5 is the Ontario Landlord and Tenant Board (LTB) application a landlord files to raise rent by more than the annual guideline for some or all of the units in a residential complex. It is the only route to an above-guideline increase (AGI) without each tenant's written agreement, and it is document-heavy: most L5s that fail do so on timing, eligibility or missing paperwork rather than on the merits.

At a glance

What the L5 is for

Section 126 of the Residential Tenancies Act, 2006 (RTA) lets a landlord apply for an order permitting a rent increase above the guideline in three cases:

1. An extraordinary increase in municipal taxes and charges for the complex or a building in it. "Extraordinary" means greater than the guideline plus 50% of the guideline, using the guideline for the calendar year in which the FED falls (O. Reg. 516/06, s. 28). If the guideline is 2.0%, the threshold is 3.0%.
2. Eligible capital expenditures. A capital expenditure is an extraordinary or significant renovation, repair, replacement or new addition with an expected benefit of at least five years. It is eligible only if it is needed to protect or restore the physical integrity of the complex, to comply with the landlord's maintenance obligations, or to maintain a plumbing, heating, mechanical, electrical, ventilation or air conditioning system, or if it provides access for persons with disabilities, promotes energy or water conservation, or maintains or improves security (RTA s. 126(7)). Routine maintenance and work that is substantially cosmetic or designed to add prestige or luxury are excluded (O. Reg. 516/06, s. 18).
3. Operating costs for security services provided by people who are not your employees, either for the first time or at an increased cost.

If the landlord proves the statutory requirements, the Board generally must grant an increase; it cannot weigh a tenant's personal finances (Interpretation Guideline 14). What it can do is refuse or suspend the increase for a unit affected by a serious, current maintenance breach, uncompleted work orders, or uncompleted elevator orders (RTA s. 126(12)–(13)).

The 3% cap and the three-year phase-in

The part of an AGI justified by capital expenditures and security costs is capped at 3% above the guideline in any 12-month period. If more than 3% is justified, the order lets you take up to 3% in the first 12-month period and up to 3% in each of the two following 12-month periods (RTA s. 126(11)). Anything justified beyond those three instalments cannot be recovered. The cap does not apply to the portion based on municipal taxes and charges, which can be taken in full in the first year (O. Reg. 516/06, s. 33(4)).

Two further rules follow from the order. Each increase must be taken within the 12-month window the order specifies; one you skip, or take only partly, is lost (O. Reg. 516/06, ss. 32–33). And for capital expenditures the order sets a future date on which you must reduce the rent of any tenant still in the unit by the capital-expenditure percentage, once the weighted useful life of the work has run (RTA s. 129).

What the L5 cannot do

• It cannot raise rent for a unit exempt from the guideline. Under RTA s. 6.1, s. 126 does not apply to units in a building (or addition) no part of which was occupied for residential purposes on or before November 15, 2018, and to certain post-2018 second units in houses.
• It cannot capture a capital expenditure for a unit whose current tenancy agreement took effect after the work was completed (s. 126(9)).
• An AGI order stops applying to a unit once a new tenancy agreement takes effect on or after the day 90 days before the FED (s. 126(14)).

When to use it (and when not to)

Use the L5 when you have incurred one of the three cost types and want the increase without negotiating unit by unit. Consider the alternatives first:

• Agreement with the tenant. For certain capital work or new services, a tenant can agree in writing to an above-guideline increase (capped at the guideline plus 3%) on an N10 (RTA s. 121). No L5 is needed for that unit.
• Replacing something that did not need replacing. Replacing a system or thing that did not require major repair or replacement is ineligible unless the new item promotes accessibility, energy or water conservation, or security (s. 126(8)). Cosmetic upgrades, suite renovations for re-leasing and appliance repairs belong outside an L5.
• Utilities. Utilities stopped being a ground for new AGI applications on January 1, 2018. Only municipal taxes and charges, capital expenditures and security remain.
• Your own staff. Security provided by your own employees, including a superintendent, cannot be claimed.

Deadlines and limitation periods

• 90 days before the FED. File at least 90 days before the first intended increase (RTA s. 126(3)). The filing deadline is the anchor for every other date. If you file late, you must also file a Request to Shorten Time; if it is denied, the application is not accepted.
• The 18-month window for capital work. The work must have been completed during the 18-month period ending 90 days before the FED (O. Reg. 516/06, s. 26(2)). Guideline 14 reads "completed" as physical completion. Separately, the expenditure must be "incurred", meaning paid in full apart from any statutory construction holdback, by the time you file (s. 18).
• Accounting years for taxes and security. For municipal taxes, the base year is the last completed calendar year before the filing deadline and the reference year is the calendar year before that. For security, the base year is a 12-month accounting period you choose, completed on or before the filing deadline. If an earlier AGI order covered the complex, the base year must start and end on the same days as in that order (s. 19).
• Worked example. FED of September 1, 2027: the filing deadline is June 3, 2027. Capital work must have been completed between roughly December 3, 2025 and June 3, 2027. The municipal-tax base year is 2026 and the reference year is 2025.
• N1 timing. The tenant must receive a written notice of rent increase at least 90 days before the increase, even when the increase is under an AGI order (RTA s. 116(2)), and 12 months must have passed since the tenant's last increase or the start of the tenancy (s. 119).
• Service after filing. When directed to serve, serve each tenant at least 30 days before an oral hearing (Rule 5.7), or within 20 days after the Board issues a notice of written hearing (Rule 5.6). File the Certificate of Service within five days of serving (Rule 5.15).
• Use it or lose it. Each ordered increase must be taken within its 12-month window (O. Reg. 516/06, s. 32).

How to fill out the L5, section by section

The current form is dated 2025/09. Read the official L5 instructions alongside it.

Language and accommodation

Choose French or English. If you need accommodation, use the separate Accommodation Request form rather than writing it on the L5.

Part 1: General Information

• Address of the Residential Complex. The complete address and postal code. Leave the unit number out if the application covers more than one unit; include it only for a one-unit application. If the complex has more than one street address, complete the Additional Residential Addresses form with the full address and postal code of each.
• Rental Unit Information (RUI). The L5 itself does not list tenants. You complete the separate L5 – Rental Unit Information form in Microsoft Excel (see below).
• First Effective Date (FED). The date of the first increase, in DD/MM/YYYY. Any increase ordered is retroactive to it.
• Previous Order. If the Board has issued an earlier AGI order for the same complex, give the most recent file number.
• Landlord's Name and Address. If the landlord is a company, use "Company Name". Add other landlords on a Schedule of Parties. Ticking "Email" consents to email service for all applicants.

Part 2: Reasons for Your Application

Shade Reason 1 (municipal taxes and charges), Reason 2 (security services) and/or Reason 3 (capital expenditures). Then give the total number of rental units in the complex and how many are covered. These numbers must match the Summary tab of the RUI; if they differ, the Board uses the RUI.

Part 3: Outstanding Elevator Work

Say whether the complex has a tenant elevator. If yes, answer whether there is a work order, an order under s. 21 of the Technical Standards and Safety Act, 2000, or an LTB order for elevator repairs, and whether each has been completed. Any uncompleted elevator work, even if its compliance date has not arrived, must be summarized on Schedule 3 (RTA s. 126(3.1)).

Part 4: Signature

The landlord or the legal representative signs and dates it. Representatives add their Law Society number and contact details.

Schedule 1: Details of Operating Costs (Reasons 1 and 2)

• A. Municipal Taxes and Charges. Enter the reference and base years and the costs for each. Say whether all units are taxed under the roll numbers claimed. Disclose any refunds, rebates, grants or other assistance, and whether they are already netted out of your figures.
• B. Security Services. Enter the reference and base year accounting periods (exact dates) and costs, and whether all units are affected.
• C. Non-residential portions. If any cost relates to commercial space or another complex, propose an allocation method (floor area, market value or revenue) and give the data for it.
• D. Units that differ from the RUI. If some units covered for capital work are not affected by the tax or security claim, list them here.
• E. Rents of affected units. Column 1 is total monthly rent for covered units; Column 2 is total monthly rent for all affected units. A vacant unit is counted at the complex's average rent.

Schedule 2: Details of Capital Expenditures (Reason 3)

• A. Description and Costs. For each item: an item number, a description, the date completed (the instructions ask for the date full payment was made for the completed work), useful life, labour/material/contract costs, the landlord's own labour (hours × a reasonable rate, excluding management time) and total cost. Useful life comes from the Schedule to O. Reg. 516/06; anything listed at under 10 years is deemed 10 years, and a used item's prior use is deducted. A leased asset is claimed at its market value at the start of the lease.
• Eligibility table. For each item, say which s. 126(7) category it meets and why.
• B. Units not affected. List only units that get no benefit from a particular item (for example, a new stove in one suite). Leave it blank for building-wide work such as a roof.
• C. Major repair or replacement. For each item, say whether the old thing needed major repair or replacement and when it was last replaced. If not, explain how the new item promotes accessibility, conservation or security.
• D. Insurance, grants and other proceeds. List insurance money, government grants or forgivable loans, and trade-in, salvage or resale proceeds. They are deducted from cost.
• E. Non-residential portions. As in Schedule 1, Part C.

Capital Expenditures: Additional Details (one per item)

This form is the table of contents for your evidence. List every invoice on its own row, then its payment method, cheque number, payment amount and date, and the amount attributable to this item. The column total must equal the cost claimed on Schedule 2. Put your invoices and proof of payment in the same order.

The RUI (Excel)

The Tenant Information tab lists every residential unit in order, with each tenant's first and last name on a separate row, the street address, whether the unit is covered (Yes/No), the total current rent including separately charged services such as parking, the rent frequency, and, for covered units, the date the current tenancy began if it began within the 18 months before the filing deadline. Vacant units show $0.00. For a capital-expenditure claim, include units that are not covered and vacant units too. Name the file with the complex address and FED.

Filing it

How you file depends on the method:

• By email. Send the L5 and schedules, the RUI in Excel, all supporting documents and a CEAD per item to AGIpayments@ontario.ca. Put the complex address and the FED in the subject line. The Board then emails a secure payment link that expires after three calendar days. Never put card details in the email.
• By mail, courier or at ServiceOntario. Include the paper application and documents, one extra photocopy of the application and of all supporting documents (for capital-expenditure claims), and an electronic copy of the supporting documents (by email or USB). Email the RUI to AGIpayments@ontario.ca separately. Pay by certified cheque or money order to the "Minister of Finance", or by Visa or Mastercard using the Credit Card Payment Form. Cash and debit are accepted only at ServiceOntario.

The fee is set out on the LTB fees page and is non-refundable. A Fee Waiver Request is available if you cannot afford it.

For capital-expenditure claims you must also tell tenants how to get the materials. On request, give a tenant an electronic PDF copy free of charge, or a photocopy at reasonable out-of-pocket cost if you both agree. If you have an office in or close to the complex, make a copy available for viewing during business hours (O. Reg. 516/06, s. 23).

Mistakes that get it refused, voided or dismissed

1. Filing fewer than 90 days before the FED. The application is not accepted unless a Request to Shorten Time is filed and granted. Counting from the date you post it is a common error. A mailed document is filed on the fifth day after mailing that is not a holiday; a couriered one on the next business day (Rule 4.8).
2. Leaving out the RUI, a CEAD, or the extra copies. The instructions say an application missing any required item will be refused. Documents not filed with the application may be excluded later; Guideline 14 says an extension "will rarely be granted" where the cause was the applicant's neglect.
3. Claiming work outside the 18-month window, or not yet paid. An item completed before the window, or not paid in full (apart from statutory holdback) at filing, is disallowed. Phased projects cannot be bundled to bring old work into the window.
4. Claiming ineligible work. Painting, flooring for re-leasing, routine elevator servicing, appliance repairs, or like-for-like replacement of something that still worked (with no conservation, accessibility or security benefit) will be struck.
5. Including tenants whose tenancy started after the work. Those units cannot carry that item (s. 126(9)). A missing "Date Current Tenancy Began" on the RUI is how this gets missed.
6. Not disclosing insurance, grants or rebates. They must be deducted, and failing to disclose them undermines your evidence. It is also an offence to file false or misleading information.
7. Ignoring elevator or maintenance problems. No Schedule 3 for open elevator orders, or a serious current maintenance breach, can lead the Board to dismiss the application for affected units or bar the increase until the work is done (s. 126(13)).
8. Claiming security provided by your own staff. Only third-party security costs qualify.
9. No valid N1. An increase taken without at least 90 days' written notice is void (s. 116(4)), whatever the order says.
10. Not serving, or not proving service. If directed to serve and you do not, the Board can dismiss (Rule 5.17). Missing the case management hearing in a capital-expenditure case can get the application dismissed as abandoned (Guideline 14).
11. Applying for an exempt building. Units covered by the s. 6.1 post-November 15, 2018 exemption are outside s. 126.

What happens next

The Board checks the application, then schedules either a written hearing (common for tax and security claims) or an oral hearing (usual for capital expenditures, with a case management hearing first). Tenants may file a written response within 50 days of a notice of written hearing; you may reply within 65 days (Rule 11). A mediated settlement cannot exceed the guideline plus 3% (RTA s. 194(3)).

Until the order issues, tenants need only pay the lesser of the N1 amount and the guideline amount (s. 126(5)). If the order comes three months or more after the FED, the Board can let tenants pay the retroactive amount over up to 12 months. If you are directed to serve the order, you now have 7 days from its issue date to serve it and 5 days after service to file the Certificate of Service. A party who disagrees with the order has 15 days to request a review (orders issued on or after July 1, 2026).

Recent changes

• July 1, 2026 (Bill 60): the deadline to request a review of an LTB order dropped from 30 to 15 days for orders issued on or after July 1, 2026 (Rule 26.5). As a consequence, where a landlord is directed to serve an AGI order, service is due within 7 days of issuance (previously 14), and the Certificate of Service within 5 days of service.
• September 21, 2026: the Rules of Procedure were updated, but the L5 was not on the list of forms replaced that day. The current L5 is the 2025/09 version and the instructions are dated November 2025.
• The substantive AGI rules (the grounds, the 90-day filing rule, the 18-month window and the 3% cap) were not changed by Bill 60. The RTA consolidation in force from September 21, 2026 still carries s. 126 in its 2017 form.

Frequently asked questions

How much can rent go up under an AGI in Ontario?

There is no fixed ceiling for municipal tax increases. For capital expenditures and security costs, the increase above the guideline is capped at 3% a year, for up to three consecutive years. Anything justified beyond 9% in total cannot be recovered.

Can I file an L5 on the Tribunals Ontario Portal?

No. The L5 is filed by email to AGIpayments@ontario.ca, by mail or courier, or at a ServiceOntario centre. The RUI must be emailed in Excel format whichever method you use.

Do I still need to give tenants an N1 if I file an L5?

Yes. Every tenant must receive a written notice of rent increase at least 90 days before the increase, even one authorized by an AGI order. The N1 has a box to indicate that you have applied for an above-guideline increase.

Can I claim a renovation I did to re-rent a vacant unit?

Generally not against the new tenant. A capital expenditure is not eligible for a unit whose new tenancy began after the work was completed. Work that is mainly cosmetic or adds luxury is excluded in any case.

What if the tenant has not paid the AGI amount when the order is issued?

If you served a proper N1 for the higher amount, the tenant owes the difference from the FED. The Board may order it paid in instalments over up to 12 months if the order issued three or more months after the FED.

Official sources

• Form L5 – Application for a Rent Increase Above the Guideline (PDF)
• L5 Instructions
• L5 – Rental Unit Information (RUI) form (Excel)
• Additional Residential Addresses form
• LTB Forms, filing and fees
• Residential Tenancies Act, 2006, s. 126
• O. Reg. 516/06 (General)
• Interpretation Guideline 14: Applications for Rent Increases above the Guideline
• LTB Rules of Procedure
• LTB Operational Update, July 1, 2026

Last reviewed October 31, 2026. This page is general information, not legal advice for your situation. Always use the current version of the form from the LTB.