Ontario's rental landscape just shifted — and if you own investment property in Kitchener-Waterloo, these changes affect your bottom line starting now.
Bill 60, the Fighting Delays, Building Faster Act, was passed on November 24, 2025, and it brought sweeping amendments to the Residential Tenancies Act. Whether you manage your own units or work with a property management team, here's a clear breakdown of what's changed and what you should do about it.
The 2026 Rent Increase Guideline: 2.1%
The provincial rent increase guideline for 2026 has dropped to 2.1% — down from 2.5% in both 2024 and 2025. For a unit renting at $2,000/month, that means you can raise rent by roughly $42/month under the standard guideline.
Keep in mind: you still need to provide at least 90 days' written notice using the proper N1 form, and increases can only happen once every 12 months. Units first occupied after November 15, 2018 remain exempt from rent control, but it's wise to verify your property's status before applying any increase.
If your costs have risen beyond what the guideline covers — think major capital repairs, significant utility hikes, or municipal tax increases — you may be eligible for an Above-Guideline Increase (AGI). Just be prepared with thorough documentation, because the Landlord and Tenant Board is scrutinizing these applications more closely than ever.
Faster Eviction Timelines for Unpaid Rent
One of the biggest changes under Bill 60 is the shortened grace period for non-payment of rent. Previously, landlords had to wait 14 days before filing an eviction application with the LTB. That window has been cut to just 7 days.
This is a meaningful change for owners dealing with chronic late payments. However, it also means your record-keeping needs to be airtight. The LTB expects organized, timestamped documentation — and late or disorganized evidence submissions are increasingly being excluded from hearings.
Stricter Rules, But Also Streamlined Processes
Bill 60 isn't all about tightening the screws. Some changes actually work in landlords' favour. The LTB now has the authority to overlook minor procedural errors in applications, which means a small filing mistake is less likely to get your case thrown out entirely.
On the flip side, penalties for bad-faith evictions — particularly N12 (personal use) and N13 (renovation) notices — have increased and are being enforced more aggressively. If you're issuing an eviction notice, make sure your intent is genuine, documented, and provable. The days of using renovation evictions as a workaround are firmly behind us.
Appeal windows have also been shortened from 30 days to 15, so both landlords and tenants need to act quickly once a decision is rendered.
What Should KW Property Owners Do Right Now?
Here are three steps to stay ahead of these changes:
1. Audit your lease agreements. Make sure your rent increase notices, eviction procedures, and documentation practices align with the updated rules.
2. Tighten your record-keeping. The LTB is moving faster and expects you to be organized. Digital records with timestamps are your best friend.
3. Work with a property manager who knows the law. Navigating Ontario's evolving rental regulations on your own is getting riskier. A knowledgeable property management partner can protect your investment and keep you compliant.
Frequently Asked Questions
What is the Ontario rent increase guideline for 2026?
The provincial rent increase guideline for 2026 is 2.1%. This is the maximum amount landlords can raise rent for most units without applying for an Above-Guideline Increase through the Landlord and Tenant Board. It's down from 2.5% in 2024 and 2025.
What is Bill 60 and how does it affect Ontario landlords?
Bill 60, the Fighting Delays, Building Faster Act, was passed in November 2025 and amends the Residential Tenancies Act. Key changes include shorter eviction timelines for unpaid rent (7 days instead of 14), reduced appeal windows (15 days instead of 30), and increased penalties for bad-faith evictions.
How much notice do I need to give for a rent increase in Ontario?
Landlords must provide at least 90 days' written notice using the official N1 form before a rent increase takes effect. Increases can only occur once every 12 months.
Are all rental units in Ontario subject to rent control?
No. Units first occupied after November 15, 2018 are generally exempt from the annual rent increase guideline. If your property falls into this category, you can increase rent beyond 2.1%, but you should confirm your unit's exemption status before doing so.
What is an Above-Guideline Increase (AGI)?
An AGI allows landlords to raise rent beyond the annual guideline when they've incurred extraordinary costs — such as major capital repairs, significant utility increases, or municipal tax hikes. These require an application to the LTB with detailed supporting documentation.
What are the penalties for bad-faith evictions in Ontario? Under Bill 60, penalties for bad-faith N12 (personal use) and N13 (renovation) evictions have increased and are being enforced more aggressively. Landlords must be able to prove genuine intent behind any eviction notice.
At My Girl Friday Management, we've been helping Kitchener-Waterloo property owners navigate exactly these kinds of changes for over a decade. If you have questions about how Bill 60 impacts your rental properties, we're here to help.
Get in touch at (519) 503-8741 or visit mygirlfriday.ca.