Quick Answer
Ontario caps most annual rent increases at the provincial guideline, but a landlord can apply for an above-guideline increase (AGI) using Form L5 when there have been eligible capital expenditures, extraordinary increases in municipal taxes or utilities, or added security services. The application must be filed before the increase takes effect and supported by detailed cost evidence the Board will scrutinize.
Applying to raise rent beyond the provincial guideline to recover the cost of major capital work or extraordinary increases in municipal taxes or security costs.
Each year the province sets a rent-increase guideline that caps how much rent can go up for most existing tenants. An above-guideline increase lets a landlord exceed that cap in specific circumstances: eligible capital expenditures (major repairs or replacements that benefit tenants), extraordinary increases in municipal taxes and charges, or new or increased security services. It is not a tool for ordinary maintenance or cosmetic upgrades.
If the Board approves the application, it sets the percentage of the increase and how it is phased in — capital-expenditure increases are capped per year and may be spread over multiple years. The Board can also order that part of the increase be temporary where it relates to operating costs. Tenants are served and can challenge the eligibility and amount of the claimed expenses.
Compile the eligible costs and supporting documents, then file the L5 with the Board before the intended increase date and serve every affected tenant. The Board reviews each claimed expense, often line by line, and tenants may dispute eligibility. If approved, the increase is applied — and phased — according to the order.
AGI applications are document-intensive and the hearings can be lengthy, particularly in larger buildings; expect several months from filing to decision. The outcome turns almost entirely on the quality of the cost evidence, so preparation is where these cases are won.
LTB matters turn on notices, service, and filing dates as much as the facts. Talk it through before a deadline passes — the first call is free, confidential, and without obligation.
