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 lease length. For leases of 12 months or less, you must give written notice between 3 and 6 months before the renewal date. For leases longer than one year, the minimum notice is 6 months.
- 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 refuses or doesn't respond, they must leave at the end of the lease
- 5.If the tenant proposes a counter-amount and you disagree, either party can apply to the TAL
Note: exempt units
Units built after November 1, 1991 in Québec have a partial exemption: the first occupants of a new unit cannot challenge a rent increase at the TAL. This exemption does not apply to subsequent tenants.
In Ontario: the annual LTB guideline
In Ontario, rent increases are subject to an annual guideline set by the provincial government. For 2025, this guideline is 2.5%. You cannot exceed this cap without an Above Guideline Increase (AGI) application. The process is strict: 90 days' written notice using Form N1. Insufficient notice voids the increase.
- 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: the TAL usually publishes reconduction rates in January each year. Ontario: the 2026 guideline will be announced in fall 2025. Subscribe to the official bulletins of both bodies so you don't miss publications.