Ontario Rent Increase Guideline 2026 – What Landlords & Tenants in Chatham-Kent Need to Know
- angelwagenaar
- Sep 5
- 4 min read
The Government of Ontario has announced that the 2026 rent increase guideline is set at 2.1%. This cap applies to most residential rental units covered under the Residential Tenancies Act and applies to rent increases issued between January 1 and December 31, 2026.
As a landlord or tenant in Chatham-Kent, understanding how this guideline works can help prevent disputes, keep you compliant with the law, and make renting a smoother experience for everyone.
🔑 What Tenants Should Know
Rent increases are capped at 2.1%: Landlords cannot raise your rent by more than this amount unless they receive approval from the Landlord and Tenant Board (LTB).
Protection from sudden hikes: The guideline helps prevent large, unexpected increases that could strain household budgets.
Applies to most tenancies: Units built before November 15, 2018, are generally covered. Newer rental units may be exempt.
Tip for Tenants: Always review your lease and check that any rent increase notice you receive is within the legal guideline.
🏠 What Landlords Should Know
2.1% is the maximum for most tenancies: This is the guideline landlords can use without needing LTB approval.
Applications required for higher increases: If your property’s operating costs (e.g., utilities, taxes, or major repairs) significantly exceed the guideline, you must apply to the LTB to raise rent above 2.1%.
Notice periods apply: Landlords must provide tenants with a written 90-day notice using the correct LTB forms before an increase takes effect.
Tip for Landlords: Staying compliant not only avoids LTB disputes but also helps maintain positive relationships with tenants.
📊 How the Ontario Rent Increase 2026 Guideline Is Set
Every year, the Ontario government sets the rent increase guideline based on the province’s Consumer Price Index (CPI). The CPI measures the average change in prices for common goods and services such as food, housing, transportation, and clothing.
The formula looks at the average inflation rate over a 12-month period ending in May of the previous year.
For 2026, that means the average CPI from June 2024 to May 2025 was used to calculate the 2.1% guideline.
This method ensures that rent increases are tied to real economic conditions while keeping rental housing affordable.
Important to Note: Even though the guideline is tied to inflation, landlords cannot exceed it without applying to the Landlord and Tenant Board for special permission.
📈 Above Guideline Rent Increases (AGI)
In certain situations, landlords can apply for an Above Guideline Increase (AGI) through the Landlord and Tenant Board. These applications are typically granted when:
The landlord has incurred extraordinary increases in operating costs (such as utilities or municipal taxes).
The landlord has completed major capital expenditures (e.g., new roof, energy-efficient windows, plumbing upgrades).
The property has experienced unexpected regulatory or compliance costs.
If approved, an AGI allows landlords to increase rent beyond the annual 2.1% guideline. However, the process is complex and requires detailed documentation, evidence, and LTB approval.
⚖️ Our Partnership with Paralegal 4 You
At Manager 4 You, we understand that navigating the Landlord and Tenant Board process can feel overwhelming — especially when it comes to Above Guideline Rent Increases or disputes over rent increases.
That’s why we proudly partner with Paralegal 4 You, a licensed paralegal service in Chatham, Ontario, specializing in Landlord & Tenant Board representation. Together, we provide landlords with:
Guidance on whether an AGI is justified.
Assistance preparing documentation and applications for the LTB.
Representation at hearings, ensuring your case is presented effectively and in compliance with Ontario law.
Tenant communication support, reducing misunderstandings and conflict.
This partnership allows us to offer complete property management and legal support under one roof — giving landlords peace of mind while ensuring tenants’ rights are respected.
Why This Matters for Property Owners in Chatham-Kent
For tenants, this means predictable rent and protection against sudden hikes. For landlords, it sets clear limits to help with budgeting rental income and property maintenance expenses.
In Chatham and across Ontario, property management is about more than collecting rent — it’s about following the rules, maintaining positive tenant relations, and protecting your investment.
At Manager 4 You, we help landlords stay informed about Ontario rental laws while ensuring tenants understand their rights. Whether you own one property or a growing portfolio, staying compliant makes managing rentals easier and less stressful.
Helpful Resources
Final Thoughts
The Ontario Rent Increase Guideline for 2026 is capped at 2.1%, providing stability for tenants and clarity for landlords. If you’re a landlord in Chatham-Kent, understanding and following these rules is essential for successful property management.
With Manager 4 You handling your property management and Paralegal 4 You providing legal expertise, you have a trusted team supporting your investment from every angle.
📞 Contact us today to learn how we can help you manage your rental properties stress-free — while staying fully compliant with Ontario rental laws.