The Residential Tenancies Act, the Ontario Standard Lease, the Landlord and Tenant Board, and the annual rent increase guideline shape every Ontario tenancy. This guide covers the rules that changed in 2026, the ones that didn't but still catch landlords out, and the most expensive compliance mistakes to avoid. General information only, not legal advice.
In 2026, Ontario's rent increase guideline is 2.1%. The Residential Tenancies Act still governs all residential tenancies. The Ontario Standard Lease is still mandatory for new private-market tenancies. LTB wait times remain long (6 to 10 months for most cases in Hamilton). New builds first occupied after November 15, 2018 remain exempt from rent control but are still subject to all other RTA rules.
Ontario's 2026 rent increase guideline is 2.1%, down from 2.5% in 2025 (unchanged year-over-year). The guideline applies to rent-controlled units first occupied on or before November 15, 2018. Landlords must give at least 90 days' written notice on Form N1 before the increase takes effect and can't raise rent more than once every 12 months.
The LTB continues to operate primarily by video hearing, with limited in-person hearings for specific case types. Case management and scheduling remain the most common bottlenecks. Processing times for non-payment (L1) cases in the Hamilton region currently run 6 to 10 months from filing to hearing date.
Forms can now be served by email where the tenant has provided written consent to email service. Traditional service methods (in person, mail, posting at the door) remain valid and are still the safer option for contested matters where service proof will be scrutinized.
The Residential Tenancies Act itself. The Ontario Standard Lease template. The prohibition on charging for anything not in the Act (no pet deposits, no damage deposits, no application fees beyond cost of credit check). The 12-month rule between rent increases. The tenant's right to assign or sublet.
The RTA is the statute that governs residential tenancies in Ontario. It applies to almost every residential rental in the province. Key provisions every landlord should know:
Since April 30, 2018, almost all new private-market residential leases in Ontario must use the Ontario Standard Lease (Form 2229E). If a landlord doesn't provide the standard lease within 21 days of the tenant requesting it in writing, the tenant can withhold one month's rent. If the landlord still doesn't provide it after that, the tenant can keep the withheld rent.
You can add your own clauses in the "additional terms" section, but any clause that contradicts the RTA is unenforceable. Common unenforceable clauses people still include:
If you're using a custom lease from before 2018 or a form from outside Ontario, replace it with the current standard lease. It's free to download from the Ontario government website.
The Landlord and Tenant Board handles every eviction, rent increase dispute, maintenance complaint, and above-guideline application in Ontario. Seven forms cover the vast majority of landlord interactions.
| Form | Purpose | Notice period |
|---|---|---|
| N1 | Notice of rent increase | 90 days before effective date |
| N4 | Notice to end tenancy for non-payment of rent | 14 days (15 for daily/weekly) |
| N5 | Notice for interfering with others, damage, or overcrowding | 20 days (7 days on severe cases) |
| N7 | Notice for serious cause (illegal acts, serious impairment of safety) | 10 days |
| N8 | Notice for persistent late payment | 60 days (tied to anniversary) |
| N12 | Notice of termination for landlord's own use or purchaser's use | 60 days + one month's compensation |
| L1 / L2 | Application to the LTB following an N4 / N5 / N7 / N8 / N12 | After notice period expires |
If your building was first occupied on or before November 15, 2018, rent increases are capped at the annual Ontario guideline (2.1% in 2026). You can only raise rent once per 12 months per tenant, with 90 days' written notice on Form N1.
Purpose-built rental buildings, condos, and additional dwelling units (ADUs) first occupied after November 15, 2018 are exempt from the guideline cap. The landlord can raise rent by any amount, still subject to the 90-day notice and 12-month rule.
On turnover, every unit — rent-controlled or not — resets to market rate. When one tenant moves out, the incoming tenant pays whatever the market supports. The new rent then becomes the anchor for all future guideline increases for that tenant.
For rent-controlled units, landlords can apply to the LTB for above-guideline increases to recover eligible capital expenditures, tax increases, or security services. AGI applications take 8 to 14 months to resolve and require detailed documentation.
This is the single most common compliance question. The process is straightforward but timing is specific.
Total timeline from first missed payment to vacant possession: 5 to 12 months. Price this risk into every deal. Professional screening at the front end (our Acceler8 process) is far cheaper than the eviction process at the back end.
2.1%. It applies to rent-controlled tenancies (buildings first occupied on or before November 15, 2018). New builds after that date are exempt from the cap.
Yes, for almost all private-market residential tenancies signed after April 30, 2018. Exceptions include care homes, mobile home parks, and social housing. If you don't provide it within 21 days of a tenant's written request, the tenant can legally withhold one month's rent.
No. Ontario landlords cannot collect damage deposits, pet deposits, or security deposits of any kind. The only deposit allowed is one month's rent applied to the last month's rent. Key deposits equal to the actual replacement cost of keys are allowed.
5 to 12 months typically. The LTB hearing alone runs 6 to 10 months in the Hamilton region. After an eviction order, Sheriff enforcement adds another 4 to 8 weeks.
No. No-pet clauses in Ontario leases are unenforceable under the RTA. You can screen for pets at the application stage and make choices between applicants, but once a tenancy starts, you can't evict for pet ownership unless it causes substantial interference with others, damage, or triggers an allergy or safety issue for another tenant.
Yes. Found Spaces prepares and serves N1, N4, N5, N8, and N12 notices, files L1 and L2 applications at the LTB, and represents owners at hearings. Included in full-service property management.
The increase isn't valid. Rent collected at the higher rate during that period is recoverable by the tenant. The T1 form can be filed up to one year after overpayment to claim the money back. Use Form N1 for every rent increase.
No, rent control for pre-November 2018 tenancies remains in effect. The post-November 2018 exemption for new builds also remains in effect. As of 2026, no legislation has passed to change either rule.
Full-service management at Found Spaces covers every form, notice, LTB filing, and hearing on your behalf. You stay compliant without learning every detail yourself.
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