Your Landlord Wants More Than the Guideline? Ontario’s Above Guideline Increase (AGI) Explained
Ontario’s 2026 rent increase guideline is 2.1%. To go higher, a landlord must apply to the LTB and get an order — they can’t just decide to.
What is an Above Guideline Increase (AGI), and when can a landlord charge more than the guideline?
An Above Guideline Increase (AGI) is a formal process where a landlord applies to Ontario’s Landlord and Tenant Board (LTB) to raise the annual rent by more than the province’s rent increase guideline. For 2026, Ontario’s guideline is 2.1%, and it applies to units first occupied on or before November 15, 2018. To go above that, the landlord cannot simply decide — they must apply on specific grounds and obtain a written order before they can lawfully charge more.
Source: Government of Ontario (ontario.ca) and the Landlord and Tenant Board (LTB / Tribunals Ontario)
Every renewal season brings the same question: is this increase even legal? Many renters don’t realize that rent-controlled units in Ontario have a legal annual cap, and that a landlord who wants to exceed it must go through a formal application — not just hand you a notice. This article lays out the 2026 rules, the grounds a landlord can use, and the cards a tenant actually holds.
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Step 1: Check whether your unit is rent-controlled
ℹ️Ordinary increases have hard rules too: once per 12 months, with 90 days’ written notice. Even an increase within 2.1% can be invalid if the notice period or frequency is wrong.
Step 2: Compare against the 2026 guideline of 2.1%
Step 3: To exceed the guideline, the landlord must apply for an AGI
Step 4: Only an LTB order makes the extra amount effective
⚠️Don’t pay the excess before an LTB order exists. Until an AGI is approved, you are not obligated to pay anything above the guideline — paying early only puts you on the back foot.
What tenants can do
Receiving an AGI application is not the same as having to pay it. Tenants have the right to take part in the LTB hearing, review the landlord’s accounts, and challenge the claim — for example, whether a cost truly qualifies as a capital expenditure and whether the amount is reasonable. The whole process is documented and contestable. Whether an increase is lawful turns on procedure and evidence, not on the landlord’s say-so.
Frequently Asked Questions
What is Ontario’s 2026 rent increase guideline?
It is 2.1%, applying to rent-controlled units first occupied on or before November 15, 2018. Units first occupied after that date are not currently subject to this annual guideline.
Can a landlord raise the rent twice in one year?
No. For the same tenant in the same unit, a landlord can increase rent at most once every 12 months, and must give 90 days’ written notice on the correct form.
My landlord says rent is going up 6% because of a new roof — do I have to agree?
It isn’t about agreeing. Going above the guideline requires LTB approval through the AGI process. Until there is a written order, you pay only the guideline portion; the excess can take effect only after the LTB reviews the landlord’s capital expenditures, and it is generally capped at 3% above the guideline per year.
Do tenants in newer (post-2018) units have no protection at all?
Not being subject to the annual guideline doesn’t mean a landlord can do as they please. Increases still require 90 days’ written notice, once every 12 months, and the rest of the lease plus your rights under the Residential Tenancies Act (RTA) still apply.
Discover more from GTA Real Estate Broker | Arthur Zhao
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