Ontario Rent Increases in 2027: A Planning Guide for Ottawa Landlords

Ontario’s rent increase guideline for 2027 is 1.9%. For an eligible rent-controlled tenancy, that means a $2,000 monthly rent could increase by $38 to $2,038, provided the timing, notice and other applicable requirements are met. The percentage is a limit for the ordinary guideline process—not an automatic annual adjustment. [1] [2]

For Ottawa landlords, the practical work starts with the tenancy file. Before budgeting for a higher rent, confirm which rules apply, when the next increase is permitted and how the notice will be delivered.

This guide focuses on ordinary annual increases for private residential rentals. Specialized housing, unusual lease arrangements and disputed exemptions may require different advice. For the previous year’s discussion, see our 2026 Ontario rent increase guide.

What does the 1.9% guideline mean?

The guideline sets the usual maximum increase without a separate above-guideline process for covered tenancies. It applies to increases taking effect in 2027; preparing a notice during 2026 does not make the 2026 guideline the relevant rate for a 2027 increase. [2] [4]

Start with the lawful current rent and the property’s actual records. Do not base a notice on an advertised market rent, an old spreadsheet or an amount that includes an unverified charge.

The following examples are calculations, not estimates of Ottawa market rents. They assume a straightforward eligible tenancy, the full 1.9% guideline increase, and no special rent adjustments.

For the $2,000 example, a full 12 months at the higher rate produces $456 more gross rent. That is not the same as $456 more profit: the calculation does not account for property expenses or other changes.

Confirm whether the rental is subject to the guideline

Do not determine rent-control status from the date you bought the property or the date the current tenant moved in. The LTB identifies possible exemptions where a unit was not occupied for residential purposes on or before November 15, 2018. Whether an exemption applies requires reviewing the actual property and occupancy history. [4]

Collect the documents relevant to that history and obtain advice when the conclusion is unclear. A renovation or a new owner is not, on its own, enough information to classify a property.

For an applicable partially exempt tenancy, the N2 instructions still describe a minimum 12-month interval and at least 90 days’ written notice. Exemption from the guideline is not permission to disregard the remaining rent-increase rules. [5]

Check the tenancy’s anniversary before choosing a date

For an ordinary guideline increase, at least 12 months must have passed since the previous increase or the tenant first moved in. At least 90 days’ notice is also required. Both conditions matter. [3]

Consider a tenant whose rent last increased on June 1, 2026. A proposed January 1, 2027 increase would be too early under the ordinary 12-month rule, even if the landlord delivered the notice months in advance. June 1, 2027 would satisfy that interval, subject to the rest of the requirements.

Create a separate entry for each unit rather than assuming every tenancy can be adjusted at the start of the calendar year. Record the current rent, last increase date, earliest eligible date and the intended effective date. Then check the file against the notice before serving it.

Choose the right form and allow time for delivery

Obtain forms directly from the current LTB forms page. An ordinary increase for a covered tenancy generally uses N1, while an applicable partially exempt unit uses N2. Read the accompanying instructions rather than reusing an old notice without checking it. [3] [5]

Service is more than pressing send. The LTB rules include written consent requirements for email service, and a mailed document is generally considered served on the fifth day after mailing. Build the required delivery time into the notice period and retain evidence of how and when service occurred. [6]

For a January increase, planning in late autumn may leave too little time. Work backwards from the proposed date well in advance. Avoid relying on a universal “last day to send” found online: the delivery method and facts of the tenancy matter.

Keep the increase separate from other rental decisions

An annual rent review is not the same exercise as setting the price for a vacant property. Our guide to pricing an Ottawa rental property can help with the latter, but comparable listings do not replace the legal rules for an existing tenancy.

Nor does the end of a fixed term mean the tenant must sign a new lease. The LTB’s N1 information explains that a tenant paying monthly can continue month-to-month when the fixed term ends. A renewal conversation is not a shortcut around the rent-increase process. [7]

Where an owner is considering an above-guideline increase, get advice on the applicable legal route before preparing the notice. Do not assume that higher operating costs automatically authorize a larger increase.

Use a review file that someone else can follow

Before a notice leaves your desk, assemble three groups of records:

• Eligibility: tenancy agreement, occupancy information where relevant, current lawful rent and previous increase documentation.

• Calculation and timing: proposed amount, effective date, completed form and the checks used to confirm the interval and notice period.

• Delivery and administration: service record, tenant correspondence and instructions for updating the rent ledger on the correct date.

Have a second person check names, unit number, arithmetic and dates where possible. This is a practical quality-control step, not a guarantee that a notice is legally valid.

Review the budget at the same time. For example, an increase starting July 1 would contribute six months of additional rent to that calendar year, not twelve. Keep your forecast aligned with the actual start date rather than simply increasing the annual rental-income line by 1.9%.

Prepare the process before updating the rent ledger

A well-organized annual review makes the decision easier to explain and the supporting records easier to locate. It also separates what the owner hopes to collect from what has been properly calculated, communicated and scheduled.

Stewart’s property management services in Ottawa include rent collection and financial reporting. To discuss support with your rental’s administration, contact Stewart Property Management. Obtain advice from an Ontario lawyer or licensed paralegal for a disputed increase, exemption or other legal question.

Research checked September 22, 2026. This article is general information, not legal advice. Confirm the current official guidance and the facts of the tenancy before serving a notice.

Sources and further reading

1. Government of Ontario — Residential rent increases

2. City of Toronto — Published Ontario rent increase guidelines, 2027 and earlier

3. Landlord and Tenant Board — N1 instructions

4. Landlord and Tenant Board — Guide to the Residential Tenancies Act

5. Landlord and Tenant Board — N2 instructions

6. Landlord and Tenant Board — Rules of Procedure, especially Rule 3

7. Landlord and Tenant Board — N1 notice, information for tenants

Photo by Ruth Bourke on Unsplash.