Tenant Placement Services in Toronto & GTA

Ontario's rental rules shifted in 2026, and two points in our January RTA Cheat Sheet now have a newer option or an extra step. Most changes come from Bill 60, the Fighting Delays, Building Faster Act, 2025, passed on November 24, 2025, alongside earlier amendments from Bill 97. Their stated aim is to cut delays at the Landlord and Tenant Board (LTB).

The cheat sheet is still a good starting point. Use this post alongside it for what's new.

1. N12 (personal use): a new way to avoid compensation

Since September 21, 2026, landlords using an N12 have two routes instead of one.

If you know months ahead that you or a family member will need the unit, planning for 120 days saves a full month's rent.

What hasn't changed: the move-in must still be genuine. The LTB can impose serious penalties if it finds an N12 was served in bad faith.

2. Unpaid rent: faster notices and fewer delays at hearings

The unpaid rent process is now faster at three points.

• N4 notice period: for N4s served on or after September 21, 2026, the tenant has 7 days to pay, down from 14, before you can apply to the LTB.

• Issues raised at the hearing: a tenant who wants to raise complaints about the landlord, such as repairs, at a non-payment hearing must first pay 50% of the rent owed, at least 7 days before the hearing.

• Reviews of LTB decisions: since July 1, 2026, a party has 15 days to request a review of an LTB decision, down from 30.

The new rules make a correct N4 even more important. Serving it with the wrong amount or the wrong termination date can still send you back to the start. For a step-by-step walkthrough, see our N4 guide.

3. N13 (renovations): Toronto now requires a licence

In Toronto, serving an N13 is no longer enough on its own. Since July 31, 2025, landlords need a City of Toronto Rental Renovation Licence for any repairs or renovations that require the tenant to move out, even if the tenant plans to return.

1. Apply within 7 days of serving the N13. Include the building permit, a copy of the N13, the application fee, and a report from a qualified person confirming the unit must be vacant.

2. The City notifies your tenant. Once your application is complete, the City issues a Tenant Information Notice.

3. Support the tenant during the work. Either arrange temporary accommodation, pay monthly rent-gap payments if the tenant is returning, or pay compensation if the tenant chooses not to return.

The licence is required for each unit, and it doesn't apply to demolitions. Fines under the bylaw can be significant, so build this step into any renovation plan from the start. Details are on the City of Toronto's Rental Renovation Licence page.

4. Rent increases: the 2027 guideline is 1.9%

The rules in our cheat sheet still apply: wait at least 12 months, give 90 days' written notice on an N1 or N2, and note that units first occupied after November 15, 2018 are exempt from the cap. What's new is the number.

The guideline applies to the date the increase takes effect. An increase taking effect in 2027 is capped at 1.9%, even if you serve the notice in 2026. Landlords can apply to the LTB for an above-guideline increase in some cases, such as major capital repairs.

5. Air conditioning: tenants can install their own

Since July 1, 2026, a tenant can install a window or portable air conditioner if the landlord doesn't provide A/C. This affects the lease terms covered in Section 1 of our cheat sheet: a "no air conditioning" clause no longer holds up.

• The tenant must give you written notice first, and the unit has to be installed safely and securely.

• If electricity is included in the rent, you can charge a seasonal increase to cover the extra cost. It can't exceed the actual or reasonably estimated cost, and it has to come off when the unit isn't in use.

• This seasonal charge doesn't follow the normal rent increase rules. It doesn't need the 12-month wait, 90 days' notice, or LTB approval.

If you own a unit without central air, set clear written expectations for safe installation now, before requests start coming in.

What hasn't changed

The rest of our cheat sheet still stands.

• The Ontario Standard Lease is still required for almost all private residential tenancies.

• Entry rules still require 24 hours' written notice, with entry between 8 AM and 8 PM, except in an emergency.

• Maintenance is still the landlord's responsibility, whatever the tenant agrees to.

• Leases still convert to month-to-month when a fixed term ends. Early drafts of Bill 60 floated ending this, but that proposal was dropped from the final law.

Stay ahead of the changes

The new rules reward landlords who plan ahead and get their paperwork right the first time. Whether you need help placing a reliable tenant or want full-service property management, contact our team and we'll help you rent with confidence.

Disclaimer: This post summarizes changes to Ontario's Residential Tenancies Act and Toronto bylaws as of October 2026, for information only. It is not legal advice. Some provisions may be subject to further regulation. For your specific situation, consult a licensed paralegal or lawyer.

Every year, the Ontario government sets a rent increase guideline that caps how much you can raise rent on an existing tenancy without applying to the Landlord and Tenant Board for an above-guideline increase. For 2026, that guideline is 2.1% — the lowest cap in four years, down from 2.5% in each of the previous three years. Here's exactly what that means, and how to implement it correctly.

The 2.1% Number, in Real Terms

The guideline is calculated by the Ministry of Municipal Affairs and Housing based on Ontario's Consumer Price Index over a set 12-month window, and is capped by law at a maximum of 2.5% regardless of how high actual inflation runs. At $2,000 a month, a 2.1% increase works out to $42, bringing rent to $2,042. At $2,500, the maximum increase is $52.50. Multiply your tenant's current rent by 1.021 to get the maximum new rent you can legally charge.

What the Guideline Actually Governs

The rent increase guideline applies to most existing residential tenancies in Ontario — it does not apply to a new tenancy with a new tenant, where you're free to set the opening rent at whatever the market supports. It's specifically the cap on how much you can raise rent for a tenant who's already in place.

Buildings first occupied for residential purposes after November 15, 2018 are exempt from the guideline entirely under current provincial rules — a detail landlords with newer purpose-built or condo rentals should confirm applies to their specific property before assuming the cap applies.

How Often You Can Raise Rent

Even within the guideline, you can only increase rent:

• Once every 12 months, at minimum, from the tenant's last increase (or from the start of the tenancy).

• With proper written notice — a minimum of 90 days before the increase takes effect, using the correct form.

The Correct Way to Notify Your Tenant

Use Form N1: Notice of Rent Increase for a standard guideline increase, or Form N2 if the increase is tied to specific circumstances outlined by the Board. Both must be given at least 90 days before the new rent takes effect, and must clearly state the new rent amount and the date it starts.

If you've read our breakdown of N4, N8, N12, and N11 forms, you know Ontario's Landlord and Tenant Board is precise about which form applies to which situation — a rent increase notice is no exception, and using the wrong form can invalidate the increase entirely.

What If You Want to Raise Rent Above the Guideline?

You can apply to the Landlord and Tenant Board for an Above Guideline Increase (AGI) in specific circumstances — most commonly for significant capital expenditures (major renovations, system replacements) or a significant increase in municipal taxes. This requires a formal application and supporting documentation, and given current LTB timelines, landlords should expect this process to take meaningfully longer than a standard guideline increase.

Common Mistakes Landlords Make

• Forgetting the 90-day notice window and trying to implement an increase too soon.

• Applying the guideline increase to a brand-new tenant's opening rent — unnecessary, since new tenancies aren't capped.

• Increasing rent more than once in a 12-month period, even by a small amount, which invalidates the notice.

• Assuming a post-2018 building is automatically exempt without confirming the exact first-occupancy date against provincial records.

Why Getting This Right Matters

An improperly issued rent increase can be challenged and reversed at the Landlord and Tenant Board, potentially forcing you to refund the difference and start the notice period over — costing you months of the increase you were trying to implement in the first place. Given how backed up LTB timelines currently are, avoiding a dispute in the first place is far more valuable than winning one after the fact.

The Bottom Line

The rent increase guideline is one of the more mechanical parts of being a landlord in Ontario, but the paperwork details — correct form, correct notice period, correct exemption checks — are exactly where landlords most often trip themselves up.

Not sure whether your property is exempt, or want help applying a rent increase correctly? Contact our team or check our rental forms library for the current notice templates.