A landlord and tenant can agree to increase the rent charged for a rental unit if the landlord has made or promises to make a specific expense or provide a new service. The agreement must include the new rent, the tenant's right to cancel the agreement, and the date the agreement starts.

The landlord can't increase the rent by more than the guideline plus 3 percent of the previous rent charged. If a tenant agrees to the new rent, they have five days to change their mind and cancel the agreement.

If the landlord wants to increase the rent, they must give the tenant at least 90 days written notice beforehand.

12-Month Rule

a landlord who is lawfully entitled to increase the rent charged to a tenant for a rental unit may do so only if at least 12 months have elapsed

• since the day of the last rent increase for the tenant in that rental unit if there has been a previous increase

• since the day the rental unit was first rented to that tenant

• if there is a rent increase for the charge of services it is not considered a rent increase

  • additional services include a

    • parking space

    • a prescribed service, facility, privilege

Ontario Residential Tenancy Act s.121