Sometimes the 2.1% guideline isn't enough — you've put a new roof on, taxes jumped, or you added security. An Above-Guideline Increase (AGI) lets you raise rent by more, but only with an order from the Landlord and Tenant Board. Here's how it works.
Three grounds for an AGI
Major repairs or replacements that benefit tenants — roof, windows, boiler, elevators. Capped at an extra 3% per year, phased over up to 3 years.
An extraordinary increase in the property's municipal taxes and charges beyond a set threshold.
New or increased costs for security services (e.g. a security guard or system) for the residential complex.
Apply to the LTB with your costs and supporting documents (invoices, work details, tax bills).
The Board decides what's eligible and how much extra rent is justified — and over how many years.
The order sets the exact above-guideline amount and the years it can be applied.
You still serve each tenant a Notice of Rent Increase (N1) with 90 days' notice, once every 12 months.
AGI applications are detailed and often contested. Many landlords work with a licensed paralegal for the L5 — but the N1 you serve at the end is something LandlordEzy generates for you in a minute.
Guideline or above-guideline, LandlordEzy fills the official N1, flags above-guideline increases correctly, e-signs, serves, and updates your ledger.
An above-guideline increase (AGI) lets a landlord raise the rent by more than the annual guideline (the 2026 guideline is 2.1%) — but only with an order from the Landlord and Tenant Board. You apply on Form L5, and the LTB decides how much extra (if any) is justified and over how many years it can be phased in.
Generally in three situations: (1) eligible capital expenditures (major repairs or replacements, like a new roof, windows, or boiler); (2) a significant increase in municipal taxes and charges; or (3) new or increased security-services costs. The work and costs have to meet the LTB's tests, and you file Form L5 with supporting documentation.
It depends on the costs the LTB approves. For capital expenditures, the increase is capped at an extra 3% above the guideline per year, and can be taken over up to three years if the approved amount is large. Tax- and security-based increases are calculated differently. The LTB order sets the exact amounts and timing.
Yes. Even with an AGI order, you serve the tenant a Notice of Rent Increase (Form N1) with at least 90 days' notice, once every 12 months. The N1 indicates the increase is above the guideline and tied to an LTB order or application. LandlordEzy's N1 generator handles the form either way.
Units first occupied after November 15, 2018 are generally exempt from the guideline, so the landlord can raise the rent above the guideline without an AGI order (still with 90 days' notice, once every 12 months). The AGI process is for guideline-controlled units. Confirm your unit's status before relying on an exemption.
General information for Ontario, not legal advice. AGI rules, caps and thresholds change — confirm the current rules with the LTB or a licensed Ontario paralegal before applying.
