An Above Guideline Increase (AGI) is a rent increase in Ontario that goes above the province’s annual rent increase limit, but only if the landlord gets approval from the Landlord and Tenant Board. It is allowed only for specific reasons, such as major capital work, extraordinary municipal tax increases, or security service costs.
What it means
A normal rent increase must stay within the yearly guideline, but an AGI is the exception. The landlord cannot simply add it on their own; they must apply and prove the increase is justified.
What tenants should know
AGIs are usually not automatic or permanent. For capital and security costs, the approved increase is capped and can often be spread over up to three years, while tax-based AGIs work differently.
In one sentence
Think of an AGI as a special, approved rent increase above Ontario’s usual cap, not a routine yearly increase
[Credit to Perplexity]
Practical Tips
Document Everything Keep accurate records of rent amounts, payment history, notices, and any property improvements. Proper documentation protects you in the event of a dispute and supports any future Above-Guideline Increase (AGI) applications.
Links to External Resources
https://www.johnson-team.com/blog/understanding-the-ontario-rent-increase-guidelines-2025/
https://www.torontotenants.org/above_guideline_rent_increases
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