One of the protections the RTA gives most tenants is control over how often and by how much rent can rise. Rather than leaving increases entirely to the market, the law limits them for covered units, providing predictability for tenants while still allowing landlords to raise rent within set bounds. Understanding these rules helps both sides know what to expect each year.
The basic rules
For most tenants, three core rules apply:
- Once every 12 months: rent can generally only be increased once in any 12-month period for the same tenant.
- Proper written notice: the landlord must give advance written notice, typically 90 days, using the required form.
- The guideline amount: the increase generally cannot exceed the annual rent-increase guideline set by the province.
The annual guideline
Each year, the government sets a rent-increase guideline — a maximum percentage by which rent for covered units can be raised without special approval. The figure is tied to an economic measure and changes from year to year, so the permissible increase this year may differ from last year. Because it changes annually, always confirm the current year's guideline rather than relying on an old figure.
Above-guideline increases
In limited circumstances, a landlord can apply to the LTB for an above-guideline increase — for example, where the landlord has incurred eligible costs for major capital work or significant increases in certain operating expenses. These require an application and the LTB's approval; a landlord cannot simply charge more than the guideline on their own.
Exemptions from the guideline
Not all units are subject to the guideline. Notably, certain newer rental units — for example, those first occupied for residential purposes after a specified date — are exempt, meaning the guideline cap does not limit increases for them, although the notice and once-a-year timing rules may still apply. Whether a unit is exempt depends on the specific rules and dates, so it is worth confirming a unit's status.
Practical points
- Check whether the unit is covered by the guideline or exempt.
- Confirm the current year's guideline percentage.
- Ensure any increase uses proper notice and respects the once-a-year rule.
General information only — confirm the current year's guideline and whether the unit is exempt.
This article is general information for educational purposes only and is not legal advice. For advice on your situation, book a consultation.