An above-guideline increase isn't automatic. It has to be approved.
The 2026 rent guideline is 2.1%. If your landlord wants more, they can't just charge it. They have to apply to the Landlord and Tenant Board and win, and until they do, you only owe the guideline amount. Here's how an AGI works and what you can do.
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In 30 seconds, here's what's true
- The 2026 Ontario rent guideline is 2.1%. For most rent-controlled units, that's the most your landlord can raise the rent in a year without the LTB's approval.
- To go higher, your landlord must apply to the Landlord and Tenant Board (Form L5) and get an order. They can't just charge an above-guideline amount on their own.
- There are only three grounds for an AGI: a big jump in municipal taxes, eligible major repairs (capital work), or new security services.
- For capital work and security, the extra can't be more than 3% above the guideline per year, and a larger amount is spread out over up to 3 years.
- Until the LTB approves it, you only have to pay the guideline amount. If it's approved, you may owe the difference back; if it's denied, any overpayment is refunded.
The steps your landlord must follow
Check the notice
A rent increase needs proper written notice (Form N1) at least 90 days ahead, and rent can usually only go up once every 12 months. An AGI rides on top of that.
See if your unit is even covered
Units first lived in after November 15, 2018 aren't under the guideline at all, so the AGI rules don't apply the same way. Older units usually are covered.
Pay only the guideline for now
If the landlord has applied for an AGI but the LTB hasn't ruled, you only owe the guideline amount (2.1% for 2026). Don't pay the higher figure until there's an order.
Go to the hearing
You'll get notice of the application. You can attend, see the landlord's evidence for the repairs or costs, and challenge whether the work qualifies or was actually done.
Raise maintenance problems
If your building has serious, unfixed maintenance issues, the LTB can delay or even refuse the AGI until they're dealt with. Bring photos, work orders, and your repair requests.
What to do next
- Confirm you got proper written notice (Form N1), at least 90 days ahead.
- Check the increase is no sooner than 12 months since the last one.
- Find out if your unit was first occupied after November 15, 2018.
- Ask whether the landlord has filed an L5 application with the LTB.
- Keep paying only the guideline amount until there's an LTB order.
- Read the landlord's evidence for the taxes, repairs, or security costs.
- Document any serious maintenance problems in your unit or building.
- Attend the hearing, or send someone, to oppose the increase.
Common myths
| Myth | Reality |
|---|---|
| My landlord can raise the rent as much as they want. | For most units, no. The 2026 cap is 2.1%. Going higher needs the LTB's approval through an above-guideline application. |
| If I get an AGI notice, I have to start paying it. | No. Until the LTB approves the increase, you only owe the guideline amount. The higher figure isn't due yet. |
| A landlord can charge an AGI for any reason. | No. There are only three grounds: a big municipal tax jump, eligible major repairs, or new security services. |
| There's no limit on an above-guideline increase. | For repairs and security, the extra can't top 3% above the guideline in a year, with bigger amounts spread over up to 3 years. |
| I can't do anything about an AGI. | You can. You get notice, you can attend the hearing, review the evidence, and argue the work doesn't qualify or wasn't done. |
| Bad maintenance has nothing to do with a rent increase. | It can. The LTB can delay or refuse an AGI if there are serious, unresolved maintenance problems in the building. |
| If the AGI is approved, I overpaid for nothing. | If it's denied or reduced, the landlord refunds what you overpaid. You only ever owe the amount the LTB actually approves. |
| New buildings follow the same rent-increase cap. | Units first occupied after November 15, 2018 aren't under the guideline, so those increases work differently. Check when your unit was first rented. |
Last reviewed July 2026
Written and reviewed by the founder of PLAIN, checked against primary government and legal sources. How we research these guides
Sources
PLAIN gives legal information, not legal advice. It is not a substitute for a lawyer or paralegal — and we'll point you to free ones. Laws change; we review these pages regularly, but always confirm current rules with the Landlord and Tenant Board.
Free. No payment to start. This is information, not legal advice.