Rent Increase Guideline

Ontario’s Rent Increase Guideline sets the annual maximum rent increase for most tenants, tied to the Consumer Price Index.

Rent Increase Guideline

September 30, 2025


What is the Rent Increase Guideline?

The Rent Increase Guideline is an annual limit set by the Ontario government that controls how much landlords can raise rent for most existing residential tenants. It is tied to the Ontario Consumer Price Index (CPI) and announced each year.

Why the Rent Increase Guideline Matters in Real Estate

The guideline matters in real estate because it balances tenant affordability with landlord operating costs. It ensures predictable increases while preventing excessive rent hikes in regulated units.

Example of the Rent Increase Guideline in Action

In 2024, Ontario sets the Rent Increase Guideline at 2.5%. A landlord with a $1,500 monthly rent can legally increase it to $1,537.50 after providing proper notice.

Key Takeaways

  • Sets maximum annual rent increase for most tenants.
  • Tied to Ontario’s Consumer Price Index (CPI).
  • Announced annually by the provincial government.
  • Applies to regulated rental units under the RTA.
  • Provides predictability for tenants and landlords.

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