How much can a Toronto landlord raise the rent in 2026?
Ontario's 2026 rent increase guideline is 2.1% — the most a landlord can raise an existing tenant's rent without Landlord and Tenant Board approval, down from 2.5% in 2025. But the guideline doesn't apply to newer condos, and it never applies to turnover rent. Here's the full picture, and why the number that matters most is the one you set when a unit goes vacant.
Ontario's 2026 rent increase guideline is 2.1%. That is the maximum a landlord can raise an existing tenant's rent in 2026 without applying to the Landlord and Tenant Board, set by the Ministry of Municipal Affairs and Housing from the Ontario Consumer Price Index. It is down from 2.5% in 2025 and is among the lowest guidelines in years.
But two large exceptions matter more to condo investors than the headline number: many newer condos are exempt from the guideline entirely, and no guideline applies when a unit turns over to a new tenant. The 2.1% cap governs sitting tenants in older buildings — not the two situations where a condo landlord actually resets the rent.
The 2026 number: 2.1%
The guideline is tied to inflation and published annually. For 2026 it is 2.1%; for 2025 it was 2.5%. It applies once per 12 months per tenant: a landlord cannot raise the rent more than once in a year, and not at all in the first 12 months of a tenancy.
Raising rent legally requires written notice on the LTB's Form N1, delivered at least 90 days before the increase takes effect. An increase imposed without proper notice, or above the guideline on a covered unit, is not enforceable.
The November 15, 2018 line that matters for condos
Ontario exempts units first occupied for residential purposes after November 15, 2018 from the guideline. A large share of Toronto's condo supply is new construction that came online after that date — which means many investor-owned units are not rent-capped at all. On an exempt unit, a landlord can raise a sitting tenant's rent by any amount, though the 90-day N1 notice and the once-per-12-months rule still apply.
If you own a post-2018 condo, the practical takeaway is not 'raise the rent aggressively' — a reliable sitting tenant is worth keeping — but that your pricing is governed by the market, not by a 2.1% ceiling. That makes accurate market pricing, not the guideline, the number to get right.
The bigger lever: turnover rent has no cap
When a tenant moves out and a new one moves in, the landlord sets the new rent at whatever the market will bear — on every unit, exempt or not. This is vacancy decontrol, and it is where most of a Toronto condo's rent trajectory is actually decided. The gap between a below-market sitting rent and a fresh market lease is frequently larger than several years of guideline increases combined.
That is why the turnover moment is the one that rewards getting it right. Price the re-lease precisely inside the current market band, market it where the qualified renters are, and sign quickly — and the new rent is locked in for the next tenancy at a level the guideline could never have reached incrementally.
Why speed matters more at turnover than the guideline ever does
Set the turnover rent too high and the unit sits. Every vacant day is permanently lost rent — roughly $74 a day on an average one-bedroom — so an overpriced re-lease can erase a full year's worth of guideline increase in a few weeks of vacancy. The discipline is to find the true market number and lease into it fast, not to chase an aspirational rent that lengthens days-on-market.
FastLease structures the engagement around exactly that: a recommended price range backed by recent comparable leases, day-one placement on property.ca and condos.ca, and a 21-day target — if a qualified tenant isn't signed by day 21, the fee drops 21%. The clock keeps the focus on the real cost, which is vacancy, not the guideline percentage.
What is the Ontario rent increase guideline for 2026?
2.1%. That is the maximum a landlord can raise an existing tenant's rent in 2026 without Landlord and Tenant Board approval. It is set by the Ministry of Municipal Affairs and Housing based on the Ontario Consumer Price Index, and it is down from 2.5% in 2025.
Does the 2.1% guideline apply to my condo?
Only if the unit was first occupied for residential purposes on or before November 15, 2018. Units first occupied after that date are exempt from the guideline — a landlord can raise a sitting tenant's rent by any amount, though the 90-day notice and once-per-12-months rules still apply.
How do I raise rent legally in Ontario?
Give written notice on the LTB's Form N1 at least 90 days before the increase takes effect, no more than once every 12 months, and not within the first year of the tenancy. On guideline-covered units the increase cannot exceed 2.1% in 2026; on exempt units there is no cap on the amount.
Is there a limit on rent when a new tenant moves in?
No. Ontario has vacancy decontrol: when a unit turns over, the landlord sets the new rent at market with no cap, on every unit. This is where most of a condo's rent trajectory is set, which is why pricing the re-lease accurately — and leasing it quickly — matters more than the annual guideline.
Should I raise a good tenant's rent to the maximum every year?
Not necessarily. A reliable tenant who pays on time and treats the unit well has real value, and turnover carries vacancy cost and re-leasing effort. Many investors hold sitting rent below the legal maximum to retain a strong tenant, then reset to market at the next genuine turnover. The math depends on the gap between current rent and market.