Landlord’s Legal Rent Increase Guide for Canada 2025-2026

Last updated: September 2025

Disclaimer: This guide offers general information on legal rent increase rules in Canada. It is not legal advice. Confirm requirements before acting.

A legal rent increase comes down to three vital points: what your lease allows, what your jurisdiction caps or limits, and how much notice you must give your tenant. 

That’s what this guide is about. It shows you how to calculate a compliant increase, choose the correct effective date, and serve notice using accepted delivery methods. You’ll also find legal ways to raise rents past the province-mandated caps using AGI (or additional rent increase) applications. 

We also have a free legal rent increase checklist and calculator you can download further down the page.

Remember, at any point you feel like skipping the hassle of figuring out which forms you need for your particular situation, you can just ask our legal AI assistant.

Understanding Rent Increase Regulations

Successful rent hikes start with a firm grasp of the legal framework. Landlords cannot simply raise the rent on a whim; any legal rent increase follows specific rules defined by statutes and lease agreements. The exact rules vary based on the type of tenancy, the local rental increase laws, and whether any rent control applies.

Fixed-Term Leases vs. Month-to-Month Tenancies

The ability to raise rent largely depends on the tenancy agreement. With a fixed-term lease (for example, a one-year lease), landlords generally cannot increase rent until the lease period ends. The only exceptions are if the lease itself includes a clause allowing a mid-term adjustment or if both parties voluntarily agree to modify the rent (such as when adding a new roommate mid-lease). In contrast, for a month-to-month rental or other periodic tenancy, rent can be increased more flexibly in line with the rising rent law after the initial term. However, even with a month-to-month arrangement, a landlord must provide advance notice and meet any legal conditions before the new rent kicks in. Always follow the exact timing rules of your local rent increase laws to avoid nullifying your increase by mistake. Providing the right written notice at the right time is crucial to notifying of a rent increase properly.

Rent Control and Rent Increase Caps

Rent control is a major factor that can constrain rent hikes. In areas without rent control, a landlord can often raise the rent by any amount the market supports, provided they give proper notice. But guidelines on increasing rent in some jurisdictions set strict caps on annual increases. For example, Oregon’s statewide law allows a maximum increase of 7% plus inflation, capped at 10%. California’s rent rise (under AB 1482) similarly limits increases for many units to around 10% per year, with lower caps tied to inflation for certain properties. On the other hand, states like Texas or Florida impose no statewide cap – landlords can hike rent freely once a lease term is over, constrained only by notice requirements and market demand.

In Canada, rent control is handled at the provincial level. Several provinces set annual guidelines for the maximum permissible rent increase. For instance, Ontario’s guideline for legal rent raises in 2025 is 2.5%, which is the maximum a landlord can raise rent for most units that year. British Columbia capped 2025 rent increases at 3%. Provinces without rent control (like Alberta, Saskatchewan, or Newfoundland) have no limit on the amount but still enforce rules on notice and frequency of increases.

Province	2025 Maximum Increase (Guideline)	Notice Required to Tenant
Ontario	2.5% (annual guideline)	90-day written notice
British Columbia	3.0%	3-month (≈90 days) notice
Manitoba	1.1% + inflation factor (will be 1.8% in 2026)	3-month notice (yearly tenancy)
Prince Edward Island	2.3%	3-month notice (monthly tenancy)
Alberta	No cap (market-driven)	3 months notice (increase allowed only once per 12 months)
New Brunswick	3% rent cap (2025)	3-month notice
Yukon	Tied to CPI, 2% to 5%	3-month notice

Table 2: Rent Increase Limits and Notice in Select Canadian Provinces (2024–2025)

Canada Rent Increase Cap Exemptions

There are exemptions to the maximum rent increase cap we highlighted in the table above:

Ontario

Units first occupied for residential purposes on/after Nov 15, 2018, are exempt from the guideline cap (but not from notice/12-month rules). You can fill out the N2 form increasing rent for partially exempt units. 

Manitoba 

Many newer buildings are guideline-exempt for 15–20 years — make sure you check if that applies to your property.

Buildings first occupied after March 2005 (time-limited new-build exemption)

British Columbia

Some properties are exempt from the rent-increase sections (when rent is tied to income) and are operated by a public housing body.

Nova Scotia (temporary cap = 5% through Dec 31, 2027)

New tenants signing a new lease (vacancy decontrol—landlord can set first-lease rent).

RGI/public housing (income-tied).

Mobile-home lot fees (land-lease communities use different rules). Cap continues for sitting tenants only. 

New Brunswick

No broad class exemptions, but there’s a statutory exception process: landlords may apply to exceed 3% (up to an upper limit set by regulation) for justified capital work; otherwise, 3% applies (Also 6-month notice and 12-month spacing).

Yukon (cap = CPI-indexed, 2% floor / 5% ceiling)

The limit is tied to the renter, not the unit (vacancy decontrol). Income-tied housing isn’t subject to the annual limit (Notice = 3 months; once per 12 months).

Quebec (no fixed “cap”; TAL rent-setting rules)

New construction / recent change-of-use can engage “Clause F” for 5 years, restricting TAL rent-fixation—effectively allowing freer rent setting during that window if the clause is completed properly (new obligations added in 2024–2025). This isn’t a “cap exemption” but functions similarly. 

PEI

Generally, there are no broad exemptions from the annual allowable increase (e.g., 2.3% in 2025), and mobile-home sites are included. Landlords can apply for a greater-than-allowable increase; otherwise, the cap applies even across tenant turnover within 12 months. 

Turn the rules above into a ready-to-send notice in minutes with RunSensible Forms.

Navigating Rental Increase Laws in Canada

Canada’s landlord-tenant laws share some similarities with U.S. practices (such as requiring notice and forbidding mid-lease increases), but there are key differences. Rental increase laws in Canada are generally stricter on the amount and frequency of rent hikes, especially in provinces with rent control. Each province or territory has its own residential tenancy legislation, so legal practitioners must reference the specific rules for that jurisdiction.

Provincial Rent Increase Guidelines and Caps

Several Canadian provinces have rent control regimes that limit the percentage by which rent can be increased annually for existing tenants. These guidelines are usually announced each year. For example, Ontario’s guideline is around 2.5% in recent years. Other provinces, such as British Columbia, Manitoba, and Prince Edward Island, similarly announce annual permissible increase percentages (often in the 1%–3% range for 2024–2025). 

By contrast, some provinces do not cap rent increases by law. Alberta, for instance, has no limit on the amount of an increase – a landlord could double the rent if the market supports it. Saskatchewan and Newfoundland likewise have no permanent rent control caps. However, even in those regions, landlords cannot raise rent indiscriminately at any moment; they must adhere to notice and frequency rules as discussed below.

Notice and Frequency Rules

Nearly all provinces limit rent increases to once every 12 months for a given tenant. This rule applies even in provinces with no caps, preventing landlords from imposing back-to-back hikes. Notice periods in Canada are generally longer than in many U.S. states. Ontario and many others mandate at least 90 days written notice, and some (like Nova Scotia) require as much as four months. Notices must be given in writing and served properly (usually delivered or mailed to the tenant). As in the U.S., landlords cannot raise the rent during a fixed-term lease in Canada, unless the lease itself includes a pre-agreed increase schedule.

When Tenants Disagree or Move Out

Some rental increase laws in Canada allow tenants to dispute an increase. Quebec uniquely lets a tenant refuse a proposed hike within 30 days, forcing the landlord to get a tribunal to set the rent. In most other provinces, if an increase is within the legal guideline, the tenant must accept it; but if a landlord exceeds the allowed amount, the tenant can file a complaint and have the illegal portion struck down. Tenants can also choose to move out at the lease end rather than pay a higher rent. Smart landlords anticipate this: if you impose the maximum legal rent increase and push the rent above market, you risk losing a good tenant and incurring a vacancy. In many cases, it’s better to keep a reliable tenant with a moderate rent increase than to enforce a steep hike and end up with turnover.

U.S. vs Canadian Rent Increase Rules (Quick Comparison)

To put the differences in perspective, the table below highlights some key contrasts between typical rent increase regulations in the United States and Canada.

Disclaimer: High-level comparison only. Local ordinances and exemptions can change outcomes. Confirm requirements before acting.

Aspect	United States (baseline outside local rent control)	Canada (baseline under most provincial regimes)	What to verify before acting
Law source	State statutes; some cities add rent control/notification rules	Provincial statutes and regulations; some cities add bylaws	Whether a local ordinance or special regime applies to the unit
Lease type	Mid-lease increases generally not allowed unless the lease permits	Mid-lease increases generally not allowed unless pre-agreed	Fixed-term vs. periodic tenancy and any rent-adjustment clause
Notice period	Commonly ~30 days for periodic tenancies; longer in some places or for larger hikes/longer tenancies	Commonly ~90 days (some provinces require 3–4 months)	Exact notice days and service methods allowed (mail, hand-delivery, e-service where permitted)
Frequency	Often limited in practice to lease renewal; some jurisdictions cap to once per 12 months	Typically, once every 12 months between increases	Whether a 12-month rule applies and when the clock resets
Caps/limits	Many areas have no general cap unless rent control applies; a few states set statewide ceilings	Many provinces issue annual guideline caps; some allow above-guideline with a process; a few have no cap	Whether a cap/guideline applies, exemptions (newer buildings, small landlords), and any application needed for above-guideline
Retaliation	Increases can be illegal if in retaliation; some laws presume retaliation for a period after a tenant complaint	Provincial laws similarly prohibit retaliatory increases	Recent tenant assertions/complaints and any statutory presumption periods
Discrimination	Fair housing laws bar increases used to discriminate against protected classes	Human rights laws bar discriminatory treatment	That rationale and application are uniform across tenants

Table 3: Comparison of Rent Increase Law – United States vs. Canada

Best Practices for Implementing Rent Hikes

Knowing the law is only half of the equation. The other half is exercising good judgment and strategy when you decide to increase rent. To take the easy and safe way, just use RunSensible Forms to find the correct notice for your state or province and complete it step by step.

If you need more info or plan to DIY it, here are some best practices for a legal rent increase that protect you from liability and maintain a positive landlord-tenant relationship.

You can also download the Legal Rent Increase Checklist with status tracking and auto-calculators.

Do Your Market Homework

Research local market rents before deciding on your increase. If the unit is far below market, a larger hike may be justified (while still obeying any rent rise law limits). Conversely, if market prices are flat, a drastic rise could backfire by driving the tenant away. Use data—comparable rents and rising expenses—to set a fair increase and document your justification in case it’s ever challenged.

Plan the Timing and Frequency

Whenever possible, schedule rent increases at natural points (like lease renewal) so they are predictable. Avoid multiple hikes in short succession; aside from likely violating rental increase laws (usually one increase per year), it undermines trust. Landlords find that modest annual raises (for example, 2–5% if permitted) are better than rare large jumps. A steady, expected increase is easier for tenants to accept and budget for, and it reduces the chance of a big shock prompting a move-out. In most jurisdictions, an annual adjustment is the maximum frequency permitted bythe  rent rise law.

Craft a Clear and Compliant Notice

How to notify rent increase properly is critical. A proper rent increase notice should be a formal letter that includes:

1. The tenant’s name and the address of the rental property.
2. The date of the notice.
3. The current rent and the amount of the new rent.
4. The effective date of the increase (when the new rent starts).

Keep the tone professional. It can help to briefly explain the reason (for example, rising expenses) so the tenant doesn’t feel the change is arbitrary. Also, ensure the notice contains any specific wording your local law requires (some places mandate certain disclosures or a particular form). 

Stay Within Legal Boundaries

This should go without saying, but always stay strictly within the limits set by legal rent increase regulations. That means:

• Do not exceed the maximum permitted increase if a cap applies (respect your local rent raise guidelines).
• Do not raise the rent before the lease allows or more often than allowed (only increase when legal under rent-raise laws).
• Do not shortchange the notice period – giving even 5 days less than required can void your increased notice in many places.
• Never attempt a retroactive rent increase. Increases apply going forward only (you cannot demand back-pay for past months).

Remember to comply with every overlapping law. For example, your state might allow a 10% increase with a 60-day notice, but your city could require an extra step (say, a fee or tenant relocation assistance) if you go that high. To avoid mistakes, create a checklist of all applicable rent rise law requirements in your area and review it before serving notice. Using practice management software like RunSensible is also wise to stay on top of every rent rise law requirement – it can send you reminders for notice deadlines and keep standard notice templates on hand with the proper legal language.

Communicate and Stay Flexible

Finally, maintain open communication with your tenants and be prepared to show some flexibility. Even after you comply with all rental increase laws and send proper notice, a tenant may have concerns. Listen to their feedback. If the tenant is a valued long-term client, you might agree to a slightly smaller increase or make some property improvements as a goodwill gesture (as long as any adjustment still adheres to rent-raising law requirements). You can also remind the tenant that the new rent remains in line with the local market. By finding a compromise, you avoid a standoff (and a potential eviction situation) and preserve a positive relationship.

Increase rent past the guideline caps the legal way (Canada)

What it means

An above-the-guideline rent increase (often shortened to “AGI”) is a formal request to raise rent by more than your province’s annual guideline for existing tenants. You can’t just decide to charge more—you must apply to your provincial rental authority (for example, Ontario’s Landlord and Tenant Board, B.C.’s Residential Tenancy Branch, or Manitoba’s Residential Tenancies Branch) and get approval before the higher amount can take effect.

New tenancies and units exempt from the guideline follow different rules. AGIs are about current tenants who are otherwise protected by the annual cap.

When it’s allowed

Most provinces that use a guideline permit AGIs only for specific, verifiable reasons. Common categories include:

• Major capital work that extends the life of the building or improves health/safety (e.g., replacing a roof or boiler, fire-safety upgrades, building envelope repairs).
• Extraordinary operating cost increases that are outside normal inflation (e.g., a sharp, documented rise in utilities, municipal charges, or security services).
• Government-mandated costs tied to compliance (e.g., code-required upgrades).

Each province defines these categories narrowly. Routine upkeep does not qualify.

What doesn’t qualify

• Regular maintenance (painting between tenancies, patch repairs, cleaning, landscaping).
• Cosmetic upgrades that don’t extend useful life or improve safety (new décor, high-end finishes).
• Costs caused by neglect or deferred maintenance.
• Financing costs like mortgage interest.
• Work that only benefits one tenant (unless your province specifically allows allocating it).

Who you apply to

You apply to your provincial decision-maker:

• Ontario: Landlord and Tenant Board (AGI application).
• British Columbia: Residential Tenancy Branch (Additional Rent Increase).
• Manitoba: Residential Tenancies Branch.
• Prince Edward Island: Island Regulatory and Appeals Commission (greater-than-allowable increase).

Other provinces/territories may have no guideline cap (so no AGI process) or different paths. Always check your province first.

How to raise rent above the Guideline caps in Ontario with AGI forms

An above-the-guideline increase (AGI) lets a landlord raise rent more than the annual cap for current tenants, but only with approval from the Landlord and Tenant Board (LTB). You apply using Form L5 and must prove the increase is justified.

When you can apply

You may apply if one or more of these apply (plain-English versions shown):

• Major capital work that extends the life of the building or improves health/safety (e.g., roof, boiler, fire systems, building envelope).
• Extraordinary municipal charges or utilities that significantly raised operating costs.
• Security services with material cost increases.
  Routine maintenance or cosmetic upgrades don’t qualify. The LTB looks for necessary, documented work—not deferred maintenance.

Check basic eligibility first

• The unit/tenancy must be covered by Ontario’s rent control (most units first occupied before Nov 15, 2018). If your unit is exempt from the cap, you don’t use the AGI route.
• Only one increase every 12 months, and you must give at least 90 days’ written notice before any increase takes effect (even after an AGI is approved).

What to gather

• Invoices, contracts, proof of payment, permits/inspections, completion dates, and photos for capital work.
• Bills and statements showing size and timing of utility/municipal charge increases.
• A simple worksheet showing how you allocated costs across affected units. The LTB uses set formulas—don’t guess.

How to apply

1. Complete Form L5 (Application for an Above Guideline Increase).
2. File with the LTB and serve tenants exactly as instructed; pay the filing fee.
3. Attend the hearing (in writing or oral) and be ready to explain the work, the numbers, and why it qualifies.
4. Receive the order—it will state the approved percentage, which units, and the start date rules.

After approval: giving notice and timing

Approval isn’t the same as notice. After you receive the order, serve the proper rent-increase notice and wait the full 90 days before charging the new rent. The increase normally starts on the regular rent-due day after the notice period. 

How much and how long

There’s no fixed AGI number. The LTB ties increase to eligible, documented costs and may allow the added amount to be permanently added for capital work, or only while an ongoing service continues (e.g., security). Read the order closely; it controls both percentage and timing. 

Common Ontario mistakes to avoid

• Calling maintenance “capital.”
• Filing with thin documentation or missing proof of payment.
• Charging early (before notice runs) or using the wrong notice form.
• Ignoring the 12-month spacing between increases. 

How to get permission for an Additional Rent Increase in British Columbia

What this is

In B.C., going beyond the annual cap is called an Additional Rent Increase (ARI). You apply to the Residential Tenancy Branch (RTB) online; if approved, the ARI is layered on top of the regular annual increase.

When you can apply

You can request an ARI for:

• Eligible capital expenditures that extend building life or improve health/safety.
• Extraordinary operating-cost increases (for example, a sharp, documented rise in utilities or required services).
• Certain government-mandated costs.

The detailed criteria are set in regulation and interpreted narrowly.

Check basic eligibility first

• You can increase rent only once every 12 months, and you must give three full months’ written notice using RTB-7 after approval.
• The increase typically takes effect on the rent-due day after three complete calendar months.

How phasing works for capital expenditures

B.C. often requires approved ARIs for capital work to be phased over up to three years and capped in each phase (commonly up to 3% per phase, layered with the regular annual increase). If you miss a phase or don’t follow the timing rules, you can’t carry forward the unused portion. The RTB order will specify exactly what you can apply and when. 

What to gather

• Invoices, contracts, proof of payment, permits/inspections, and completion dates for capital projects.
• Bills/letters proving extraordinary operating-cost increases.
• A clear calculation showing how you spread costs across units and years.

How to apply

1. Submit the ARI application online to the RTB with your evidence; pay the fee.
2. Tenants may respond; a dispute-resolution officer reviews the file or holds a hearing.
3. If approved, the order will state the amount, phasing, and effective date rules.
4. Serve RTB-7 and wait three full months before the higher rent starts.

Common B.C. mistakes to avoid

• Treating cosmetic upgrades as capital work.
• Missing proof of payment or permits.
• Serving RTB-7 before approval or not giving three full months.
• Ignoring phasing limits in the order. 

Raising Rent minus the paperwork hassle

Create a jurisdiction-ready rent increase notice in minutes with RunSensible Forms. Find the exact form for your state or province, follow guided steps that explain each field in plain language, and download a polished PDF ready to send. Each form includes practical tips and links to official rules so you can double-check timing and delivery. Get started now and move from research to done.

FAQs

How much can I increase the rent in my province?

Each province sets its own annual guideline (a percentage cap) for existing tenants, or has no cap. The cap changes year to year. Check your province’s current guidelines before you draft a notice. If your unit is exempt from the guideline (see below), the cap may not apply, but notice and timing rules still do.

Do I need to give notice, and how much?

Yes. Canada uses longer notice than many U.S. states. Expect about three months or more, depending on your province and tenancy type. Examples:

• Ontario: 90 days
• British Columbia: three full months
• Manitoba and PEI: three months
• Nova Scotia: four months
• New Brunswick: six months
  Always use your province’s prescribed form and service rules.

How often can I raise the rent?

In most provinces, once every 12 months for the same tenant, even where there’s no cap on the amount.

Can I raise rent during a fixed-term lease?

Generally no. Increases take effect at renewal unless the lease clearly allows a scheduled increase and your province permits it.

What’s an above-the-guideline increase, and when can I use it?

It’s a formal request to raise rent more than the provincial cap for current tenants. You must apply and be approved by your province’s decision-maker (e.g., LTB in Ontario, RTB in B.C., Residential Tenancies Branch in Manitoba). Typical reasons: major capital work, extraordinary operating-cost increases, or government-mandated costs. Routine maintenance doesn’t qualify.

I own a newer building. Do the caps still apply?

Maybe not. Some provinces exempt certain newly built units from the guideline for a window of years, or (in Ontario) exempt units first occupied after a specific date from the cap. Exemptions never remove your notice and 12-month rules—only the cap on amount.

Do the caps apply when a tenant moves out?

Usually caps protect sitting tenants. On a new tenancy, many provinces allow you to set the starting rent at market. Normal advertising rules and any local bylaws still apply.

What happens if I use the wrong form or give the wrong notice period?

The increase is not valid. The tenant can keep paying the old rent. You’ll need to re-serve on the correct form and wait the full notice period again. You cannot backdate or charge the higher rent retroactively.

Do I need to explain the reason for a normal (within-guideline) increase?

Often, no reason is required on the notice if you are within the guidelines and using the right form. For above-guideline or additional rent increase applications, you must prove the reason with invoices, proof of payment, permits, and clear calculations.

Can a tenant refuse a rent increase?

• If you followed the law and stayed within the cap, the tenant generally can’t refuse; they pay the new lawful rent after notice runs.
• If you go above the guidelines, the tenant can oppose your application.
• Quebec is different: tenants can refuse a proposed increase within a set time, and the tribunal may set the rent.

When does the new rent start?

On the rent-due day after the full notice period has passed. Some provinces require three full calendar months, which means timing must align with your tenant’s rent-due date. Plan backwards from the date you want the new rent to start.

Are email or text notices okay?

Only if your province allows it and, in some places, only with the tenant’s written consent. Many provinces require personal service or mail and have rules about when service is deemed received. Follow your province’s service rules exactly.

Can I add separate charges for utilities or improvements instead of raising rent?

It depends on your province and what your lease already says. Some provinces have strict rules about introducing new charges (e.g., sub-metering) for sitting tenants. If the change effectively increases what the tenant pays, treat it like a rent increase and follow the legal process.

What if my operating costs go back down after an increase?

For above-guideline increases tied to ongoing costs (like a security contract), some provinces allow or require adjustments if the cost drops. Keep records; you may need to apply to vary or the tenant may apply for a decrease.

Is there anything I must file with the government when I increase rent?

Some provinces require that you file or register certain notices or send a copy to the authority (e.g., Manitoba). Others don’t. Check your province’s instructions on the notice form.

Can I raise the rent to push out a problem tenant?

No. Retaliatory or discriminatory rent increases are illegal. Use the proper enforcement or eviction process if there are legitimate breaches (e.g., non-payment, substantial interference), and keep rent increases separate and lawful.

Do special housing types have different rules?

Yes. Mobile/manufactured home parks, care homes, rooming houses, and subsidized housing often have extra rules for rent and services. Check the specific section of your province’s legislation before acting.

Sources

1. https://www.nolo.com/legal-encyclopedia/free-books/renters-rights-book/chapter3-8.html 
2. https://www.justia.com/real-estate/landlord-tenant/information-for-tenants/basic-rent-rules/rent-increases/ 
3. https://housingrightscanada.com/resources/rent-control-policies-across-canada/ 
4. https://www.cicnews.com/2024/10/five-most-important-things-to-know-about-renting-in-canada-1047497.html 
5. https://oregoncapitalchronicle.com/briefs/oregon-rent-increases-will-be-capped-at-10-in-2024/ 
6. https://www.oregon.gov/rea/newsroom/pages/2024-oren-j/annual-maximum-rent-increase-10-percent-2025.aspx 
7. https://peirentaloffice.ca/rent-increases/
8. https://www.servicealberta.gov.ab.ca/pdf/RTA/Rent_increases.pdf
9. https://rentguidelinesboard.cityofnewyork.us/2025-26-apartment-loft-order-57/