Ontario sets 2025 rent increase guideline

Ontario’s annual rent increase guideline will remain at 2.5% for 2025.

Here’s what you need to know:

The cap only applies to properties built and first occupied before November 15, 2018, totaling roughly 1.4 million rentals across the province that are limited in how much they can raise the rent every year.

For example, if a tenant's monthly rent is $1,500, a 2.5% increase of $37.50 would bring the new rent to $1,537.50.

Rent increases are not automatic (or mandatory). Property managers must provide 90 days' written notice using an N1 rent increase form and can only raise rent once per year – and not before 12 months since the start of the lease.

Property managers seeking to increase rent by more than 2.5% must submit an N10 form to the Landlord and Tenant Board for approval. Property managers may do this if they have upgraded (or will upgrade) the property or are offering a new service to the tenant, but the rent increase is still limited to 3% above the rent increase guideline – for 2025, that would be 5.5%.

More rent payment headlines

Landlords call for automatic eviction of non-payers – PayProp blog

Hamilton tenants protest above-guideline rent increases – The Hamilton Spectator

Striking tenants mark one year of withholding rent from landlords – CBC