Ontario’s rental rules have undergone several important changes heading into 2027.
Whether you’re a landlord renting out an investment property, a homeowner considering leasing your home, or a tenant preparing for a move, it’s important to understand how Ontario’s Residential Tenancies Act and Landlord and Tenant Board rules affect rent increases, late payments, landlord-use evictions and renovations.
Here are some of the key rules to know for 2027.
1. Ontario’s 2027 Rent Increase Guideline Is 1.9%
Ontario has set the 2027 rent increase guideline at 1.9%.
For most rent-controlled properties, this means a landlord can increase the existing tenant’s rent by a maximum of 1.9% in 2027 without receiving approval from the Landlord and Tenant Board for an above-guideline increase.
For example:
If the current rent is $2,500 per month, a 1.9% increase would be:
$2,500 × 1.019 = $2,547.50 per month
There are also timing requirements.
Generally, at least 12 months must have passed since the tenant first moved in or since the tenant’s last lawful rent increase. The landlord must also provide at least 90 days’ written notice using the appropriate form before the increase takes effect.
2. Not Every Ontario Rental Is Rent Controlled
One of the most important things for renters to determine before signing a lease is whether the property is subject to Ontario’s rent increase guideline.
Generally, rental units that were first occupied for residential purposes after November 15, 2018 are exempt from the provincial rent increase guideline.
That can include newer condominium buildings, newly constructed rental buildings, additions to existing buildings and certain newer basement apartments.
For these exempt properties, the 1.9% guideline does not limit the amount of a lawful rent increase.
However, other rules still apply, including the requirement that generally 12 months pass between increases and that proper notice be provided.
This distinction can be particularly important for renters comparing newer Toronto condos with older rental properties.
3. The N4 Non-Payment Notice Period Is Now 7 Days
Ontario has shortened the notice period associated with an N4 Notice to End a Tenancy Early for Non-payment of Rent.
For applicable notices given on or after September 21, 2026, the termination date can be as early as seven days after the notice is given, rather than the previous 14-day period.
An N4 does not mean that the tenant is immediately evicted. An eviction still requires the applicable Landlord and Tenant Board process and enforcement of an eviction order.
But heading into 2027, landlords and tenants should recognize that the initial non-payment process can now move more quickly.
4. Ontario Has Defined Persistent Late Payment More Clearly
Another important change concerns tenants who repeatedly pay their rent late.
As of September 21, 2026, Ontario regulations specify that persistent late payment includes circumstances where rent is received more than seven days after the due date at least three times within a six-month period, subject to the specific rules and exceptions in the legislation.
Persistent late payment can be grounds for a landlord to seek termination of a tenancy through the LTB.
This makes keeping accurate payment records particularly important for both landlords and tenants.
5. N12 Rules Have Changed for Landlord’s Own Use
An N12 can be used in certain circumstances when a landlord, qualifying family member or purchaser requires the property for residential occupation.
One significant change affects compensation when the landlord is taking back the property for their own use.
For qualifying N12 notices served on or after September 21, 2026, if the landlord provides at least 120 days’ notice and the termination date meets the statutory requirements, the landlord is no longer required to pay the usual compensation or offer another acceptable rental unit.
If less than 120 days’ notice is provided, the existing compensation requirements continue to apply.
Importantly, this particular compensation change does not apply to an N12 issued for a purchaser’s own use.
For landlords planning to sell a tenanted property, that distinction matters.
6. There Are New Occupancy Rules After an N12
The rules do not simply end when the tenant moves out.
For applicable landlord-use N12 notices, the landlord or other specified person is normally expected to take occupancy within 60 days of the termination date stated on the N12.
If that does not happen, the legislation can create a presumption of bad faith if the former tenant brings a T5 application. The landlord can present evidence to rebut that presumption at the hearing.
Different provisions can apply where the N12 was issued for a purchaser’s use.
For landlords, this makes documentation and genuine planning around personal occupancy especially important.
7. Renovictions and N13 Notices Have Additional Requirements
Ontario has also strengthened and clarified procedures surrounding N13 notices for renovations and repairs.
Where a tenant has properly indicated that they want to return to the property after qualifying renovations, landlords have additional notification obligations.
These can include notifying the tenant about the estimated completion date, updating them if that date changes, informing them when the property is ready and providing the required opportunity to reoccupy the unit.
For applicable renovations completed on or after September 21, 2026, the landlord must also provide the tenant with 60 days’ notice to reoccupy the unit.
A qualifying returning tenant is generally entitled to return at a rent no greater than what the landlord could have lawfully charged had the tenancy not been interrupted.
What This Means for Toronto Landlords
For landlords, the biggest lesson going into 2027 is that proper documentation and timing matter.
A rental property should be treated like a business relationship. Keep records of rent payments, use the current LTB forms, document notices and communication, and understand the rules before attempting to terminate a tenancy.
This becomes particularly important when preparing a tenanted property for sale. The rules governing a vacant property and a tenanted property are very different, and an incorrect notice or timeline can affect a transaction.
What This Means for Toronto Tenants
Tenants should understand the rules governing their specific property rather than assuming every Ontario rental operates the same way.
Before signing a lease, it is worth determining:
Whether the property is subject to rent control
When the unit was first occupied for residential purposes
What utilities are included
Who is responsible for maintenance and other costs
The required notice for ending the tenancy
Whether any additional terms in the lease are enforceable under Ontario law
For renters comparing properties, these details can be just as important as the monthly asking rent.
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This article is for general informational purposes only and is not legal advice. Ontario rental legislation and Landlord and Tenant Board procedures can change. Landlords and tenants should review the current Residential Tenancies Act, LTB forms and official provincial guidance or obtain legal advice for their specific circumstances.
Information current as of September 23, 2026.
Final Thoughts
Renting in Toronto can feel competitive, but with the right preparation and a realtor guiding you through every step the process becomes smooth, transparent, and stress-free.
If you’re planning to rent in Toronto and want support from start to finish, feel free to reach out. I’m here to guide you through the search, secure the best unit, and help you navigate everything with confidence.