Ontario L5 Form: Building an Above-Guideline Rent Increase Application That Holds Up

In Ontario, a landlord who wants to raise rent beyond the yearly guideline for some or all units in a residential complex applies to the Landlord and Tenant Board (LTB) on Form L5. Short of each tenant agreeing in writing, it is the sole path to an above-guideline increase (AGI). It is also heavy on paper, and when an L5 fails it is usually because of timing, eligibility or a missing document, not because the landlord's costs were not real.

At a glance

The three grounds for an AGI

The Residential Tenancies Act, 2006 (RTA), in s. 126, says a landlord may seek an order allowing a rent increase above the guideline on any of these grounds:

Municipal taxes and charges that rose by an extraordinary amount for the complex or one of its buildings. An increase is "extraordinary" when it exceeds the guideline plus half of it, measured against the guideline for the FED's calendar year (O. Reg. 516/06, s. 28). With a 2.0% guideline, anything over 3.0% qualifies.

Eligible capital expenditures. These are extraordinary or significant renovations, repairs, replacements or new additions expected to provide a benefit for at least five years. To be eligible, the work must do one of the following (RTA s. 126(7)): keep up a heating, plumbing, electrical, mechanical, ventilation or air conditioning system; protect or restore the complex's physical integrity; satisfy the landlord's maintenance obligations; give access to persons with disabilities; promote energy or water conservation; or maintain or improve security. Ordinary maintenance is excluded, as is work that is substantially cosmetic or aimed at prestige or luxury (O. Reg. 516/06, s. 18).

Security services performed by people who are not your employees, whether newly introduced or now costing more.

Interpretation Guideline 14 explains that once a landlord proves what the statute requires, the Board will generally have to allow an increase, and a tenant's personal financial situation is not a factor. The Board can, however, refuse or suspend the increase for a particular unit where there is a serious and current maintenance breach, an outstanding work order, or an outstanding elevator order (RTA s. 126(12)–(13)).

How the 3% ceiling spreads an increase over three years

Whatever part of the increase rests on capital expenditures and security costs may not exceed the guideline by more than 3% in a given 12-month period. Where the evidence supports more than 3%, the order spreads it out: up to 3% in the first 12 months, then up to 3% in the second and third years (two more 12-month periods) under RTA s. 126(11). Anything still owing after those three steps is lost. The municipal-tax share of an increase is not capped and may be taken entirely in year one (O. Reg. 516/06, s. 33(4)).

The order carries two further consequences. First, each increase belongs to a 12-month window fixed by the order and must be used inside it; an increase you skip, or only partly take, cannot be recovered later (O. Reg. 516/06, ss. 32–33). Second, a capital-expenditure order names a future date on which the rent of any tenant still living in the unit must come down by the percentage attributable to capital work after that work's weighted useful life ends (RTA s. 129).

Limits on what an L5 can achieve

• Exempt units are out of reach. Section 6.1 of the RTA switches off s. 126 for buildings and additions with no residential occupancy of any part on or before November 15, 2018, and for certain second units in houses created after 2018.
• New tenancies after the work. A capital expenditure cannot be applied to a unit whose present tenancy agreement started after the work was finished (s. 126(9)).
• Turnover near the FED. The AGI order stops covering a unit once a fresh tenancy agreement for it starts on or after the date falling 90 days before the FED (s. 126(14)).

Deciding whether an L5 is the right step

An L5 makes sense when you have one of the three qualifying cost types and want the increase across the complex rather than bargaining suite by suite. Before filing, rule out these alternatives and traps:

• A written agreement instead. For some capital work or new services, a tenant can sign on to a raise of up to the guideline plus 3% using an N10 (RTA s. 121). That unit then needs no L5.
• Replacing what was still sound. Under s. 126(8), swapping out a system or item that was not in need of major repair or replacement does not qualify, unless the new one improves accessibility, security, or energy or water conservation. Cosmetic upgrades, suite refreshes for re-renting and appliance repairs do not belong in an L5.
• Utility costs. Since January 1, 2018, new AGI applications cannot rely on utilities; just the three grounds described above remain.
• In-house security. Security delivered by your own employees, a superintendent included, cannot be claimed.

Time limits that shape the application

• Filing at least 90 days ahead of the FED. Section 126(3) requires the application to be in no later than 90 days before the first intended increase, and every other date hangs off this one. A late L5 must be paired with a Request to Shorten Time, and if that request fails, the application will not be accepted.
• Capital work completed in an 18-month window. Completion has to fall inside the 18-month period whose last day is the 90th day before the FED (O. Reg. 516/06, s. 26(2)), and Guideline 14 treats "completed" as physically complete. As a separate requirement, the cost must be "incurred" by the filing date, which means fully paid except for any statutory construction holdback (s. 18).
• Base and reference years for taxes and security. A tax claim compares two calendar years: the last full one finished before the filing deadline (base) and the year preceding it (reference). A security claim uses a base year that is any 12-month accounting period you pick, so long as it is over by the filing deadline. If the complex was the subject of an earlier AGI order, use the same start and end days that order used (s. 19).
• N1 timing. Even with an AGI order, each tenant must get written notice of the increase at least 90 days in advance (RTA s. 116(2)), and the 12-month gap since the previous increase or the start of the tenancy still applies (s. 119).
• Serving after filing. If directed to serve, the deadline is 30 days or more before an oral hearing (Rule 5.7), or 20 days from the Board's notice of written hearing (Rule 5.6). The Certificate of Service is due within five days of service (Rule 5.15).
• Each increase expires. An ordered increase not taken within its 12-month window is gone (O. Reg. 516/06, s. 32).

A worked timeline

Take a First Effective Date of July 1, 2027. Counting back 90 days puts the filing deadline at April 2, 2027. Capital work therefore has to have been completed in the 18 months running from about October 2, 2025 to April 2, 2027, and paid for by the time you file. For a municipal-tax claim, 2026 is the base year and 2025 the reference year. Every tenant's N1 must be in hand at least 90 days before July 1, 2027.

Completing the L5 and its schedules

The form in use is the 2025/09 version. Keep the official L5 instructions open as you work.

Language and accommodation

Select English or French. Accommodation needs go on the separate Accommodation Request form, not on the L5.

Part 1: General Information

• Complex address. Give the full address and postal code. Include a unit number only if the application concerns a single unit. Where the complex has several street addresses, list each one, with its postal code, on the Additional Residential Addresses form.
• Tenants. These are not listed on the L5. They go on the separate L5 – Rental Unit Information form, an Excel workbook described below.
• First Effective Date. Enter it as DD/MM/YYYY. Any increase granted runs back to this date.
• Previous Order. If an earlier AGI order exists for the complex, give the latest file number.
• Landlord's Name and Address. A corporate landlord uses "Company Name". Further landlords go on a Schedule of Parties. Checking "Email" is consent to email service on behalf of every applicant.

Part 2: Reasons for Your Application

Shade whichever of the three reasons apply: municipal taxes and charges (1), security services (2), capital expenditures (3). Then state how many rental units the complex contains in total and how many the application covers. Those figures must agree with the Summary tab in the RUI; where they do not, the Board goes by the RUI.

Part 3: Outstanding Elevator Work

Indicate whether tenants have an elevator. If they do, disclose any outstanding elevator repair order (a work order, an LTB order, or one made under s. 21 of the Technical Standards and Safety Act, 2000) and whether it has been complied with. Unfinished elevator work goes on Schedule 3 (RTA s. 126(3.1)) even if its compliance date has not yet arrived.

Part 4: Signature

You or your legal representative sign and date; a representative includes licensing and contact information.

Schedule 1: Operating costs (Reasons 1 and 2)

• Part A, municipal taxes and charges. Set out the two years and their costs; confirm every unit falls under the roll numbers claimed; and list any grant, rebate, refund or other assistance received, saying whether your figures already deduct them.
• Part B, security. Give the exact start and end dates of the reference and base accounting periods, the cost in each, and whether every unit is affected.
• Part C, non-residential space. Where a cost is shared with commercial space or another complex, propose how to divide it (by floor area, market value or revenue) and supply the supporting figures.
• Part D, units that differ from the RUI. Identify units covered for capital work that the tax or security claim does not touch.
• Part E, rents of affected units. Column 1 totals the monthly rent of covered units; Column 2 totals it for every affected unit, with vacant units entered at the complex's average rent.

Schedule 2: Capital expenditures (Reason 3)

• Part A, description and cost. For every item, give an item number, a description, the completion date (the instructions ask for the date the completed work was paid in full), the useful life, the labour, material and contract costs, any of your own labour (hours multiplied by a reasonable rate, leaving out management time), and the total. Useful life comes out of the regulation's Schedule; a listed life shorter than 10 years is treated as 10 years, and for a used item the life already consumed is deducted. A leased asset is valued at its market value when the lease began.
• Eligibility table. Identify the s. 126(7) category each item satisfies and explain why.
• Part B, unaffected units. Name only units that gain nothing from a particular item, such as every suite except the one that received a new stove. For building-wide work like a roof, leave it empty.
• Part C, need for major repair or replacement. For each item, state whether the old component required major repair or replacement and the date it was last replaced; where it did not, explain the accessibility, conservation or security benefit of the new one.
• Part D, money received. List insurance payouts, government grants or forgivable loans, and proceeds from trade-in, salvage or resale. These come off the cost.
• Part E, non-residential space. Handled the same way as the Schedule 1 allocation.

The per-item Additional Details form

Use this form as the index to your evidence for each item. Give every invoice its own row and record the payment method, cheque number, amount paid, payment date and the portion attributable to the item. The column total has to equal the cost you claimed on Schedule 2. File the invoices and payment proof in matching order.

The RUI workbook

On the Tenant Information tab, list every residential unit in order. Each tenant's first and last name takes a separate row, plus the street address, a Yes or No for coverage, how often rent is paid, and the full current rent with any separately billed services such as parking added in. For covered units whose current tenancy began in the 18 months leading up to the filing deadline, add the date that tenancy began. Vacant units are entered at $0.00. For a capital-expenditure claim, list uncovered and vacant units too. Name the file using the complex address and the FED.

Filing the L5

The method you choose determines what goes in the package:

• Email. Email AGIpayments@ontario.ca the L5 and schedules, the Excel RUI, a CEAD for each item and all supporting documents, with the complex address and FED in the subject line. The Board replies with a secure payment link that stays valid for three calendar days. Card details never go in the email itself.
• Mail, courier or ServiceOntario. Send the paper application and documents, plus, for capital-expenditure claims, one additional photocopy of the application and every supporting document, and the supporting documents in electronic form (emailed or on a USB key). The RUI is still emailed separately to AGIpayments@ontario.ca. Pay with a certified cheque or money order made out to the "Minister of Finance", or with Visa or Mastercard on the Credit Card Payment Form. Only ServiceOntario takes cash or debit.

The LTB fees page sets the fee, and it is not refunded. If you cannot afford it, use the Fee Waiver Request.

A capital-expenditure claim also obliges you to tell tenants how they can see the materials. A tenant who asks must receive an electronic PDF copy at no charge, or, if you both agree, a photocopy at a reasonable out-of-pocket cost. If you have an office in or near the complex, tenants must be able to inspect a copy there in business hours (O. Reg. 516/06, s. 23).

Why L5 applications are refused or dismissed

1. Filing inside the 90-day period. A late L5 is turned away unless the Board grants a Request to Shorten Time. Landlords often count from the day they post the package, yet mail counts as filed only on the fifth non-holiday day after it is sent, and a couriered one on the following business day (Rule 4.8).
2. An incomplete package (no RUI, a missing CEAD, no extra copies). Per the instructions, leaving out any required item means refusal. Evidence that was not filed up front may be excluded later, and Guideline 14 says more time "will rarely be granted" when the gap resulted from the applicant's own neglect.
3. Work finished outside the 18-month window, or not fully paid. An item completed before the window opened, or unpaid at filing (other than statutory holdback), is disallowed. Splitting a project into phases does not drag older work into the window.
4. Ineligible items. Expect the Board to strike painting, re-rental flooring, appliance repairs, routine elevator servicing, and swapping a working item for an identical one with no accessibility, security or conservation benefit.
5. Charging an item to a tenancy that began after the work. Those units cannot bear that item (s. 126(9)), and a blank "Date Current Tenancy Began" field in the RUI is how the problem slips through.
6. Hiding money received. Insurance proceeds, grants and rebates come off the cost. Leaving them out damages the credibility of your evidence, and filing false or misleading information is an offence.
7. Overlooking elevator or maintenance issues. If Schedule 3 is missing for open elevator orders, or there is a serious current maintenance breach, the Board can dismiss the application for affected units or hold back the increase until the work is complete (s. 126(13)).
8. Claiming in-house security. Only security supplied by third parties qualifies.
9. No proper N1. Without at least 90 days' written notice, the increase is void regardless of the order (s. 116(4)).
10. Service failures. When you are directed to serve and do not, the Board may dismiss (Rule 5.17). In a capital-expenditure case, failing to attend the case management hearing can result in dismissal as abandoned (Guideline 14).
11. An exempt building. Units within the s. 6.1 exemption for buildings first occupied after November 15, 2018 fall outside s. 126 altogether.

From filing to order

After screening the application, the Board sets either a written hearing, often used where only taxes or security are claimed, or an oral hearing (typical for capital expenditures, preceded by a case management hearing). Tenants have 50 days from a notice of written hearing to file a written response, and you have 65 days to reply (Rule 11). A settlement reached in mediation cannot go beyond 3% over the guideline (RTA s. 194(3)).

While the application is pending, tenants owe only whichever is lower: the guideline amount or the N1 amount (s. 126(5)). An order that arrives at least three months after the FED may let tenants spread the retroactive balance across up to 12 months. Where you must serve the order, service is due 7 days after issue, and proof of service 5 days after that. A party who disagrees can seek a review within 15 days (for any order dated July 1, 2026 or later); see the request to review an order page.

Recent changes

• Bill 60, July 1, 2026. The window to request a review shrank from 30 days to 15 for orders dated July 1, 2026 onward (Rule 26.5). As a result, a landlord directed to serve an AGI order now has 7 days from issuance (down from 14), with the Certificate of Service due 5 days after service.
• September 21, 2026. New Rules of Procedure took effect, yet the L5 was not among the forms replaced on that date. The 2025/09 version remains current, with instructions dated November 2025.
• What Bill 60 left alone. None of the substantive AGI rules moved: same grounds, same 90-day filing rule, same 18-month window, same 3% cap. As consolidated from September 21, 2026, the RTA's s. 126 reads as it has since 2017.

Frequently asked questions

Is there a limit on how far an AGI can raise rent?

For municipal tax increases, no fixed maximum applies. For capital expenditures and security, the amount above the guideline is limited to 3% per year over a maximum of three consecutive years, so anything justified above 9% in total is unrecoverable.

Can the L5 go through the Tribunals Ontario Portal?

No. Your options are email (AGIpayments@ontario.ca), mail, courier or ServiceOntario, and email the RUI in Excel format no matter which method you use.

If I have filed an L5, do tenants still need an N1?

Yes. Every increase, including one authorized by an AGI order, requires written notice at least 90 days ahead. There is a box on the N1 for indicating that an AGI application has been made.

Can renovation costs for a vacant suite be passed on to the new tenant?

As a rule, no. A capital expenditure cannot be applied to a unit whose new tenancy started after the work was finished, and work that is mostly cosmetic or adds luxury is ineligible anyway.

What if tenants have been paying the old rent when the order comes out?

Provided you served a valid N1 for the higher rent, the tenant owes the difference back to the FED. Where the order came at least three months after the FED, instalments over up to 12 months may be permitted.

Official sources

• Form L5 – Application for a Rent Increase Above the Guideline (PDF)
• L5 Instructions
• L5 – Rental Unit Information (RUI) form (Excel)
• Additional Residential Addresses form
• LTB Forms, filing and fees
• Residential Tenancies Act, 2006, s. 126
• O. Reg. 516/06 (General)
• Interpretation Guideline 14: Applications for Rent Increases above the Guideline
• LTB Rules of Procedure
• LTB Operational Update, July 1, 2026