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.

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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.

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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.

Looking for a Rental in Toronto?

Toronto’s rental market can move quickly, but choosing a property should involve more than simply finding an available unit.

I help clients evaluate the property, neighbourhood, lease terms and practical considerations that can affect what it is actually like to live there.

The goal is straightforward: understand what you’re signing, know what you're paying for, and choose a property that makes sense for your needs.

Thinking about renting, leasing your property, or preparing a tenanted property for sale? Let’s have a conversation.

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.

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Finding a rental in Toronto can feel overwhelming especially if you’re new to the city, new to Canada, or renting for the first time. Between competitive listings, documentation requirements, and fast-moving timelines, it helps to understand exactly how the process works before you start booking showings.

Here’s a clear, step-by-step guide to how renting works in Toronto, what documents you’ll need, and how a licensed realtor helps you secure the right home with confidence.

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TL;DR

Here’s a simple breakdown of how renting works in Toronto:

1. Define your budget, move-in date, and preferred neighbourhoods/buildings.

2. Prepare your documents (photo ID, employment letter, recent pay stubs, full credit report, and references).

3. Choose how you want to be screened - Pick between Self-serve Digital Screening (invite only by realtor) or Manual Screening.

4. Put pen to paper and formally engage me as your realtor. In Toronto, landlords pay the commission, so you receive full representation at no cost to you.

5. Plan and schedule showings based on listings that match your criteria.

6. Submit a strong rental application with supporting documents. Negotiate terms as needed. Once accepted, provide the first and last month’s rent deposit or any other voluntary amounts.

7. Sign the Ontario Standard Lease and arrange key exchange on occupancy date.

⚠️ To book property showings in Toronto, you’ll need to work with a licensed realtor. Your agent is your representative throughout the entire search and application process at no cost to you. In Ontario, landlords pay the commission.

Here’s how I help renters:

• Identifying suitable listings and planning property tours

• Advising on neighbourhoods, commute times, and rental market values

• Preparing and submitting rental offers

• Negotiating terms on your behalf

• Managing paperwork and guiding you through the approval process

• Facilitate key exchange on occupancy date

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Step 1 - Move-In Date and Budget

Define your budget, move-in date, and preferred neighbourhoods/buildings.

Step 2 - Prepare your documents

There are 2 options for tenants to choose from when it comes to tenant screening. Regardless of which method you choose, here are the documents you need to rent a property in Toronto:

2 Pieces of Photo ID

Accepted forms include:

• Permanent Resident Card

• Canadian Driver’s Licence

• Passport

Full Credit Report

Equifax or TransUnion are generally the accepted credit reports.

Must include your current credit score (not just the summary page).

Income & Employment Verification

If you’re employed:

• Employment letter

• Recent T4 (if available)

• Last 2 months of pay stubs

• 2–3 months of Canadian bank statements showing recurring pay deposits

• If new to employment, landlords prefer to see $30–80K in savings

• If employed internationally (US/UK/etc.), an employment letter is sufficient

If you’re self-employed:

• 1–2 years of business bank statements

• Tax returns and/or Notice of Assessment showing stable income

Guarantor Information (If Needed)

A guarantor may be added as a lessee to strengthen your application.
Required:

• Two pieces of ID

• Proof of income (employment letter, pay stubs, T4, or NOA)

Rental History (If Applicable)

• Previous landlord reference and contact info

• Proof of past rent payments

Tip: A strong, complete package can make the difference between getting approved or losing a unit to another applicant.

Step 3 - Tenant Screening - Your Choice!

Property showings are scheduled AFTER a prospective tenant completes a basic screening process.

This allows landlords to understand who will be entering the property and helps protect the safety and liability of both the current tenant and the landlord.

For tenants, having your documents prepared in advance gives you a strong advantage. In Toronto’s competitive rental market, especially in sought-after neighbourhoods and buildings, landlords expect a complete rental application package. Being organized allows your realtor to act quickly and submit a strong offer as soon as you find the right property.

You have 2 options to complete tenant screening:

Option 1 - Self-serve Digital Screening - SingleKey

SingleKey is an all-in-one tenant screening solution that puts renters in control of their personal information while searching for a new home. It streamlines the rental process, creating a secure and seamless experience for tenants, realtors, and landlords alike.

Cost: $29.99/report

Option 2 - Realtor Manual Screening

This requires tenants to send all personal documents to the realtor through email or upload documents to secure cloud storage.

Cost: $0

Step 4 - Formalizing the Tenant–Realtor Relationship

Before we begin showings, two mandatory documents must be reviewed and signed:

1. RECO Consumer Information Guide

This outlines your rights and responsibilities when working with a realtor in Ontario.

2. Buyer Representation Agreement (BRA)

Although the name sounds like it’s for buyers, it’s also used for renters.
This document:

• Formalizes our working relationship

• Defines the search area (e.g., City of Toronto)

• Sets a clear time frame for the agreement

I’ll send both documents digitally so you can review and sign them at your convenience.

Step 5 - Property Search & Plan Showings

Once the paperwork is completed, I’ll create a personalized property search based on your budget, preferred neighbourhoods, transit needs, unit size, and amenities.

We’ll schedule showings usually over one or two days during the same week you’re ready to submit an offer. Toronto rentals move quickly, so timing is key.

Step 6 - Submitting a Rental Offer

When you find the right place, I’ll prepare and submit the offer for you.
If your offer is accepted, you’ll need to provide:

✔️ First and Last Month’s Rent Deposit

This must be submitted within 24 hours of acceptance.
Accepted formats:

• Certified cheque

• Bank draft

• Wire transfer

Tip: Keep your deposit funds ready in a chequing account so you can act fast.

Step 7 - Lease Signing & Key Exchange

After the landlord receives your deposit, you’ll be issued a firm lease under Ontario’s Residential Tenancy Agreement (RTA).

We’ll then coordinate:

• Lease signing

• Move-in inspection (if applicable)

• Key exchange (usually on the lease start date)

From here, you’re officially ready to move into your new home.

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.

Start Rental Application