If you are an Ontario landlord or tenant, you have probably gotten used to the number 2.5%. For the last three years (2023, 2024, and 2025), that was the maximum amount a landlord could raise the rent.

It became such a standard figure that many people started calling it the "2.5% Rule." But for 2026, that rule has been broken.

Here is what you need to know about the 2026 Rent Increase Guideline, why it changed, and who is actually exempt from it.

The New Number for 2026: 2.1%

The Ontario government has officially set the 2026 Rent Increase Guideline at 2.1%.

This applies to rent increases taking effect between January 1, 2026, and December 31, 2026.

Why the drop? The guideline is based on the Ontario Consumer Price Index (CPI), a measure of inflation calculated by Statistics Canada.

• Under the Residential Tenancies Act, the guideline is capped at a maximum of 2.5%, regardless of how high inflation gets.

• However, because inflation has cooled, the calculated formula for 2026 resulted in 2.1%, coming in under the legislative cap for the first time in years.

Does This Apply to Everyone? (The "2018 Loophole")

No. This is the most critical misunderstanding in Ontario rental law. The 2.1% guideline does not apply to newer units.

If a rental unit was first occupied for residential purposes after November 15, 2018, it is exempt from rent control.

• For these units: The landlord can raise the rent by any amount they choose, provided they wait 12 months since the last increase.

• For older units (Pre-Nov 2018): The landlord is strictly limited to the 2.1% guideline.

How to Calculate the Increase

If you are rent-controlled, here is the math for 2026:

• Current Rent: $2,000.00

• 2026 Guideline: 2.1%

• Maximum Increase: $42.00

• New Rent: $2,042.00

3 Rules Landlords Must Follow

Even if the increase is within the 2.1% guideline, you cannot just text your tenant the new price. You must follow the strict procedure:

1. Wait 12 Months: You can only increase rent once every 12 months (either from the move-in date or the last increase).

2. Give 90 Days' Notice: You must provide written notice at least 90 days before the increase takes effect.

3. Use the Right Form: You must use the official Form N1 (Notice of Rent Increase) available from the Landlord and Tenant Board (LTB).

   • Note: If your unit is exempt from rent control (post-2018), you should use Form N2 instead.

Can Rent Go Higher Than 2.1%?

Yes, but only in specific situations. A landlord can apply to the LTB for an Above Guideline Increase (AGI). This is typically approved only if:

• There have been extraordinary increases in municipal taxes and charges.

• The landlord has done significant capital work (renovations/repairs).

• The landlord has incurred costs for security services.

Summary: The "2.5% Rule" is out. For 2026, the magic number is 2.1%—unless you live in a new building, in which case the sky is the limit.

If you are a landlord in Ontario, you have likely heard the horror stories: owners waiting 12 months for a hearing while their non-paying tenant lives rent-free.

While the "dark days" of 2022-2023 are largely behind us, the Landlord and Tenant Board (LTB) is still playing catch-up. As we head further into 2026, the timelines have shifted. Some streams are moving faster, while others remain stuck in a bottleneck.

At GTALandlord.ca, we track these timelines daily. Here is the realistic breakdown of how long you will currently wait for justice—and how to speed up the process.

The Current Wait Times (Estimates for 2026)

Note: These are averages based on recent trends. Your specific case may move faster or slower depending on the adjudicator availability and case complexity.

1. The "Fast" Lane: Non-Payment of Rent (L1)

• Status: Improved Significantly

• Estimated Wait: 3 to 5 Months The LTB has prioritized L1 applications to address the financial bleeding of small landlords. While "3 months" doesn't feel fast when you are paying a mortgage without rent, it is a massive improvement over the 8-10 month waits of previous years.

2. The "Slow" Lane: Personal Use & Conduct (L2)

• Status: Lagging

• Estimated Wait: 5 to 8 Months Applications for N12s (Landlord’s Own Use) or N5s (Interference/Damage) are taking longer. These hearings often require more time for evidence and cross-examination, meaning fewer can be scheduled per day.

3. The "Traffic Jam": Tenant Applications (T2/T6)

• Status: heavily Backlogged

• Estimated Wait: 9 to 12+ Months If a tenant files against you for maintenance issues or harassment, expect a long wait. Because these don't typically involve immediate loss of housing, they are often deprioritized compared to evictions.

Why Is It Still Taking So Long?

Despite hiring more adjudicators, the LTB is fighting a backlog of over 30,000 cases.

• The "Digital Shift": The move to the Tribunals Ontario Portal (TOP) has streamlined filing, but the learning curve has caused administrative hiccups.

• Adjournments: This is the killer. If you finally get a hearing date and the tenant claims they didn't get the Zoom link or need legal counsel, the adjudicator may "adjourn" (postpone) the hearing. In 2026, an adjournment can push your case back another 3-4 months.

3 Ways to Speed Up Your Case

You cannot force the LTB to work faster, but you can prevent your case from being thrown to the back of the line.

1. Use the Portal (TOP) Correctly

Paper applications are dead. If you aren't using the Tribunals Ontario Portal to file your L1 or L2, you are voluntarily slowing yourself down. The system allows you to see the status of your file in real-time and negotiate with tenants directly through the platform.

2. Consider Mediation

On your hearing day, you will be offered a chance to speak with a Dispute Resolution Officer (DRO).

• The Perk: If you and the tenant can agree on a move-out date or payment plan, you can get a Consent Order right then and there. No waiting for a judge, no risk of adjournment.

• The Strategy: Sometimes offering "Cash for Keys" via mediation is cheaper than waiting another 4 months for an eviction order.

3. The "One-Shot" Rule: Don't Mess Up the Notice

The #1 cause of delay isn't the LTB—it's typos. If you wait 5 months for a hearing, only for the adjudicator to notice you misspelled the tenant's last name or forgot to sign the N12, your case will be dismissed. You do not get to "fix" it. You must start over at Day 0.

Don't Wait in the Wrong Line

Navigating the LTB requires patience and precision. One small error on an N4 form can cost you thousands of dollars in lost rent.

Worried about your paperwork? At GTALandlord.ca, we ensure your notices are flawless before they are served, giving you the best chance at a smooth, speedy hearing.

Contact Us Today to discuss your tenant issues.

If you are a landlord in Ontario, your filing cabinet is likely full of "N" forms. But using the wrong one—or checking the wrong box—can result in your case being thrown out by the Landlord and Tenant Board (LTB) after months of waiting.

At GTALandlord.ca, we see landlords mix these up constantly. Here is your plain-English guide to the four most critical forms you need to know.

1. N4: The "Non-Payment of Rent" Notice

This is likely the first form you will ever use. It is strictly for when the tenant has not paid rent by the due date.

• The Deadline: You can serve this the day after rent is due.

• The "Void" Period: The tenant has 14 days (for monthly tenancies) to pay all arrears. If they pay everything within this window, the notice is void—it’s like it never happened.

• The Trap: You cannot lock the tenant out after 14 days. If they don't pay and don't leave, you must file an L1 Application with the LTB to get an eviction order.

• Pro Tip: Never wait "to be nice." Serve the N4 immediately when rent is late. It starts the legal clock, even if you hope they pay eventually.

2. N8: The "Persistent Late Payment" Notice

Many landlords confuse this with the N4. Use the N8 when the tenant does pay, but is habitually late.

• The Goal: You aren't evicting them for owing money right now; you are evicting them because their pattern of lateness is damaging your business.

• The Proof: You need a detailed ledger showing a long history (usually 6-12 months) of late payments.

• The Difference: unlike the N4, the tenant cannot "void" this notice by paying rent. The issue isn't the money; it's the timing.

• The Notice Period: You must give 60 days' notice, and the termination date must align with the end of a rental period (usually the last day of the month).

3. N12: The "Personal Use" Notice

This is the "Owner Moving In" form. It is heavily scrutinized by the LTB due to abuse, so you must follow the rules perfectly.

• Who Can Use It: You, your spouse, child, or parent (or a caregiver for them). You cannot use this if the property is owned by a corporation.

• The Compensation: You must pay the tenant one month’s rent (or offer another acceptable unit) by the termination date. If you forget this payment, your application will be denied.

• The Commitment: The person moving in must intend to live there for at least one year. If you re-rent or sell the unit shortly after, the tenant can sue you for "bad faith" (up to $35,000+).

• Notice Period: 60 days, ending on the last day of a rental period.

4. N11: The "Mutual Agreement" to End Tenancy

This is the "Gold Standard" of ending a lease because it is voluntary.

• How It Works: You and the tenant both agree to end the tenancy on a specific date. No reasons required.

• Why Landlords Love It: It cuts through the red tape. If the tenant signs an N11 but doesn't leave, you can get an "ex parte" (immediate) eviction order without a hearing.

• The "Cash for Keys" Reality: Tenants rarely sign this for free if they have cheap rent. This form is often used in "Cash for Keys" deals where the landlord pays the tenant to leave voluntarily to avoid the months-long N12 process.

Which Form Do I Need?

• Tenant didn't pay rent? N4

• Tenant pays, but always late? N8

• You want to move back in? N12

• You both agree to part ways? N11

Don't Let a Typo Cost You Months of Rent

One wrong date or misspelled name can void these notices legally. If you are dealing with a difficult tenant or a complex eviction, don't guess.

Need professional help managing your tenants or navigating the LTB?

Contact the experts at GTALandlord.ca today.