When increases are legal, when they're not, and exactly what to do about it
Many Canadian tenants accept rent increases without question — including illegal ones. Here's how to verify whether your increase is valid, and what to do if it isn't.
1. Was it given in writing? Verbal notice, text messages, and emails without your lease agreement requiring email notice are invalid in most provinces. 2. Was enough notice given? Ontario requires 90 days written notice; BC requires 3 full months. 3. Is the percentage within the provincial guideline? Ontario's 2026 guideline is 2.5%; BC's is 3.0%. 4. Has it been at least 12 months since your last increase? If any of these four conditions isn't met, the increase is not valid and you are entitled to refuse payment of the excess.
Landlords in Ontario can apply to the LTB for an above-guideline increase (AGI) for major capital expenditures (roof replacement, elevator repairs, new building systems) or extraordinary increases in municipal taxes or utilities. You will receive a copy of the application and have the right to attend a hearing and respond. Many AGIs are reduced or dismissed when tenants engage the process. Free tenant duty counsel is available at LTB hearings — use it. Common defences: the work wasn't necessary, costs were unreasonable, tenants didn't benefit.
Write to your landlord identifying the specific problem — improper form, insufficient notice, excess percentage, or inadequate notice period. Keep this letter. Pay only the legal amount: your existing rent plus the maximum legal percentage increase, properly notified. If the landlord insists you pay the full amount, file a T5 application with the LTB (illegal charge) — the filing fee is $53 and can result in a rent reduction order plus a rebate of any overpaid rent. Document all rent payments with date, amount, and method.
Maintain a complete rent payment log showing date paid, amount, and method of payment. Keep all rent receipts. Keep every version of your lease and any written communications from your landlord. If you are in a province without rent control (Alberta), negotiate a longer fixed-term lease when the rent level is favourable — it locks in your payment for the entire term. Know your LTB or equivalent tribunal's website and filing procedures before you need them.
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Read All ReviewsThese guides are written for Canadian buyers, sellers, renters, and landlords and are kept current for 2026. They are for informational purposes only — not legal, tax, or financial advice. Rules vary by province; confirm details with your lawyer, accountant, or licensed real estate professional before making decisions.