Ontario Rent Increase Guideline 2026: What Landlords Should Expect
The Ontario government has confirmed that the 2026 rent increase guideline will be capped at 2.1% — the lowest limit in the past four years. For Windsor landlords, this announcement underscores the need for a careful balance: covering rising operating costs while staying compliant with provincial regulations. Understanding how this new guideline works, and how to apply it strategically, will be critical to maintaining both tenant satisfaction and long-term investment returns.
Understanding Rent Increase Rules in Ontario
Rent increases in Ontario fall under the Residential Tenancies Act (RTA). Each year, the province sets a guideline based on Statistics Canada’s Consumer Price Index (CPI), which measures inflation. This ensures rent adjustments reflect broader economic conditions while protecting tenants from sharp increases.
To legally raise rent in Ontario, landlords must:
Provide tenants with at least 90 days’ written notice.
Wait a minimum of 12 months from the last increase or the tenant’s move-in date.
Follow the annual guideline unless granted an above-guideline increase by the Landlord and Tenant Board (LTB).
Ontario’s 2026 Rent Increase Guideline
For 2026, landlords may raise rent by up to 2.1% for most residential rental units, including apartments, condominiums, houses, and care homes.
According to the Ministry of Municipal Affairs and Housing, this cap is designed to:
Keep rental housing affordable for tenants.
Allow landlords to keep pace with rising property expenses.
Provide stability in a market still recovering from higher vacancies in 2025.
At Richmond Property Management, we will be preparing and delivering all rent increase notices to tenants on behalf of our clients, ensuring compliance and timely implementation.
When Windsor Landlords Should Consider a Rent Increase
Even with the 2.1% guideline, rent adjustments should be strategic, not automatic. Windsor landlords may consider increases when:
Property expenses rise, including taxes, insurance, or maintenance costs.
Renovations or upgrades significantly improve unit value.
Market rents shift, requiring adjustments to remain competitive.
Legal Limits: What Landlords Can and Cannot Do
- Stay within the guideline: For 2026, that means no more than 2.1%, unless approved by the LTB.
Know the exemptions: Certain new builds (post-2018) may not be subject to rent control.
Avoid missteps: Increasing rent outside of legal requirements can result in disputes, penalties, or orders to reverse the adjustment
Tenant Perspective: Why Transparency Matters
Tenants are more likely to accept a rent increase when the reasoning is clear. Communicating the connection between inflation, rising costs, and the government’s guideline helps build trust and minimize conflict.
Richmond Property Management takes care of this process — drafting compliant notices, handling tenant questions, and ensuring communication is clear and professional.
How Richmond PM Helps Owners Navigate Rent Increases
Full compliance with Ontario’s Residential Tenancies Act.
Market research to determine competitive yet sustainable rent levels.
Tenant communication handled with professionalism, reducing disputes.
Peace of mind for owners, knowing increases are delivered legally and on schedule.
Ontario Rental Increase, the right way!
Ontario’s 2.1% cap for 2026 presents both a challenge and an opportunity. For Windsor landlords, it’s a reminder that effective property management is not just about collecting rent — it’s about balancing affordability, compliance, and ROI.
At Richmond Property Management, we help owners navigate these decisions with confidence. From preparing notices to positioning your property strategically in the Windsor market, our goal is simple: keep your rentals profitable while keeping your tenants satisfied.
Need help planning your 2026 Ontario rental increase?
Contact Richmond Property Management today and let our team handle the details.
