Rent increases are one of the most important levers for maintaining the profitability of your rental investment. But the rules vary significantly between provinces, and a procedural mistake can make your increase illegal. Here's what you need to know for Québec and Ontario.
In Québec: TAL rules
The Tribunal administratif du logement publishes annual reconduction rates used to calculate allowable increases. The increase you propose is not legally capped, but tenants can challenge it at the TAL if they consider it excessive.
Notice periods depend on the lease. For a lease of 12 months or more, notice is generally given 3 to 6 months before the end. For a lease under 12 months, the period is generally 1 to 2 months. Separate rules apply to indefinite leases and certain units covered by Section F.
- 1.Send written notice with the new rent amount and effective date
- 2.The tenant has one month to respond after receiving the notice
- 3.If accepted, the new lease takes effect at the expiry of the current one
- 4.If the tenant does not respond within one month, the lease is renewed on the proposed terms
- 5.If the tenant refuses the change while renewing, the landlord may ask the TAL to set the rent within the applicable deadline
Note: Section F
Special rules may apply during the five years after a new building becomes ready for occupancy or after a change of use, when Section F of the lease is completed correctly. Check the conditions and exceptions on the TAL website before acting.
In Ontario: the annual LTB guideline
In Ontario, rent increases are subject to an annual guideline set by the provincial government. The guideline is 2.1% for 2026 and 1.9% for 2027. Some units are exempt from the guideline, and an Above Guideline Increase may apply in specific cases. At least 90 days' written notice is generally required using the appropriate form.
- Use Form N1 available on the Landlord and Tenant Board website
- Minimum 90 days' notice before the effective date
- Rent can only be increased once per 12-month period
- Units built after November 2018 are exempt from the guideline
Practical calculation
- Current rent: $950.00/month
- 2.3% increase: $950 x 0.023 = $21.85
- New rent: $971.85/month
- Over 12 months: $262 in additional revenue per unit
- On a 6-unit building: $1,572 in additional annual revenue
Practical tips
- Always send notices in writing and keep a signed copy or delivery confirmation
- Maintain a log of the send date, amount requested, and tenant response
- Don't wait until the last minute; missing the notice window forces you to wait another cycle
- Apply regular moderate increases rather than large sporadic ones
- Briefly explain the reasons for the increase to the tenant
Important 2026 dates
Québec: review the percentages and calculation tool published by the TAL each year. Ontario: the guideline is 2.1% for 2026 and 1.9% for 2027. Check official pages before each notice because rules and forms can change.