Where Every Big Bank Stands On Wednesday's Interest Rate Announcement

Above Guideline Increase (AGI)

Learn about AGIs (above guideline increases) in Canadian rental law — what they are, when they apply, and tenant protections.

Above Guideline Increase (AGI)

July 28, 2025


What is an Above Guideline Increase (AGI)?

An AGI, or above guideline increase, is a rent increase above the standard annual guideline that landlords can apply for in specific circumstances.

Why AGIs Matter in Real Estate

In Canadian rental law, AGIs allow landlords to recover costs from extraordinary expenses or investments while protecting tenants from arbitrary rent increases.



Common reasons for AGIs:
  • Major capital improvements (e.g., new roofs, HVAC)
  • Significant increases in taxes or utilities
  • Enhanced security services



Understanding AGIs helps landlords and tenants know when such increases are valid and how they are regulated.

Example of an AGI in Action

The landlord applied for an AGI after completing extensive plumbing and electrical upgrades to the building.

Key Takeaways

  • Rent increase above annual guideline
  • Must be approved by landlord-tenant boards
  • Only permitted for qualifying costs
  • Tenants can dispute unsupported AGIs
  • Ensures fair cost recovery for landlords

Related Terms

Additional Terms

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A draw schedule is a payment plan used in construction financing that outlines when and how funds will be released to the builder or contractor as. more

Encumbrance

An encumbrance is a legal claim, liability, or restriction on a property’s title that may affect its use, transfer, or value.. more

Eminent Domain

Eminent domain is the government’s legal right to expropriate private property for public use, with fair compensation to the owner.. more

Development Charges (DCs)

Development charges (DCs) are fees imposed by municipalities on new developments to help fund infrastructure and services required due to growth.. more

Deed Restriction

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Convertible Mortgage

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