Ontario Illegal Rent Increase Challenge — RTA 2006 Demand
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Tenancy + Rent-Increase Details
RTA 2006 s.119 caps annual increases at the published guideline (2.1% for 2026). The statutory ceiling on the guideline itself is 2.5% under s.120(2.1). Above-guideline increases require an LTB application by the landlord under RTA s.126 (capital expenditures or extraordinary financing) — they cannot be imposed by unilateral notice.
This letter will cite
Residential Tenancies Act, 2006 (SO 2006 c.17) ss. 116 (notice of rent increase), 119 (annual cap), 120 (guideline), 120(2.1) (statutory cap 2.5%), 126 (AGI applications); O. Reg. 516/06 (forms — Form N1 prescribed); 2026 Ontario guideline 2.1% per ontario.ca/page/residential-rent-increases
Ontario's Landlord and Tenant Board has jurisdiction over rent-increase disputes via Form T1 (tenant application for rent reduction / order to repay illegally collected rent). Decisions are typically issued within 2-4 months of filing.
Units first occupied AFTER 15 November 2018 are exempt from the guideline under RTA s.6.1 — landlords can raise rent by any amount with proper notice. Confirm the unit's status before filing.
Must be at least 90 calendar days after the notice date and at least 12 months after the start of tenancy / last increase.