Form L5 is how an Ontario landlord asks the Landlord and Tenant Board (LTB) for permission to push rents higher than the annual guideline, whether for one unit, several, or a whole residential complex. Without a signed agreement from each tenant, an above-guideline increase (AGI) is available no other way. Expect a large paperwork load. Most L5s that go down do so because of timing, an ineligible item or a missing attachment, not because the landlord's costs were imaginary. Since every affected tenant is a party, the tenant's view is covered here as well.

Key facts
Applicant A landlord whose complex is still covered by the guideline
Timing Filed 90 days or more before the First Effective Date (FED), the planned start of the first increase
Allowed grounds Capital expenditures that qualify; municipal taxes and charges up by an extraordinary amount; outside security services that are new or cost more
Filing [email protected], post, courier, or ServiceOntario (never the Portal). The Rental Unit Information (RUI) workbook always travels by email
Fee $233 for up to ten units; each unit beyond that adds $10; $1,000 maximum
Separate notice An N1 goes to every tenant, 90 days or more in advance
Afterwards When told to, deliver the Notice of Hearing, the application and eventually the order, and prove it with a Certificate of Service

What can justify an AGI

Section 126 of Ontario's Residential Tenancies Act, 2006 (RTA) recognizes three cost categories.

Ground What it takes
Municipal taxes and charges An extraordinary jump for the complex or a building in it. The bar is the guideline plus 50% of the guideline, using the guideline of the FED's calendar year (O. Reg. 516/06, s. 28). If that guideline were 2.5%, anything above 3.75% would clear it
Capital expenditures Significant or extraordinary work (renovation, repair, replacement or a new addition) with an expected benefit of five years or more, which also fits an eligible purpose listed below
Security services Paid to outsiders, not your staff, and either brand new or more costly than before

The eligible purposes for capital work, from RTA s. 126(7), are:

  • shoring up or restoring the physical integrity of the complex;
  • satisfying the landlord's maintenance duties;
  • keeping mechanical, electrical, plumbing, heating, ventilation or air conditioning systems in service;
  • making the building accessible to people with disabilities;
  • saving energy or water; and
  • keeping security at its current level or better.

Ordinary upkeep never qualifies. Neither does work that is substantially cosmetic or meant to add luxury or prestige (O. Reg. 516/06, s. 18).

A landlord who proves the statutory elements is generally entitled to some increase. The Board does not look at whether a given tenant can afford it (Interpretation Guideline 14). Its leverage lies in RTA s. 126(12)–(13): a unit touched by a serious maintenance breach that is still going on, an incomplete work order or an incomplete elevator order can have the increase refused or put on hold.

The 3% ceiling and the phase-in

Security and capital costs together are limited to 3% over the guideline per 12-month period. Suppose the evidence supports 7%. The order would permit 3% in year one, 3% in year two and 1% in year three, because RTA s. 126(11) spreads a larger amount over the first 12 months and the two 12-month periods after it, at no more than 3% each. Support beyond 9% across those three years simply cannot be collected. Tax increases are different: no cap, and the full amount can be charged in the first year (O. Reg. 516/06, s. 33(4)).

Two strings come attached to every order:

  1. Each slice has a shelf life. It must be charged within the 12 months the order allots to it. Skip it, or take only part, and the rest is forfeited (O. Reg. 516/06, ss. 32–33).
  2. Capital increases come back off. The order names a date, worked out from the weighted useful life of the work, on which the rent of any tenant who is still there must drop by the capital-expenditure percentage (RTA s. 129).

Where an L5 cannot reach

  • Post-2018 exempt housing. RTA s. 6.1 switches off s. 126 for a building or addition no part of which had residential occupants on or before November 15, 2018, and for some second units added to houses since then.
  • Tenants who moved in after the work. If a unit's present tenancy agreement started once the job was already complete, that capital item is off-limits for the unit (s. 126(9)).
  • Fresh tenancies near the FED. An AGI order stops applying to a unit when a new tenancy agreement for it takes effect on or after the date falling 90 days ahead of the FED (s. 126(14)).

Alternatives and wrong turns

The L5 is the right call when one of the three cost types is real and paid, and getting agreement unit by unit is not realistic. Watch for these instead:

  • A signed N10. For some capital work or added services, the tenant can simply agree in writing on an N10 to pay more than the guideline, to a ceiling of guideline plus 3% (RTA s. 121). An agreeing unit drops out of the L5 picture.
  • Swapping out something that still worked. If the old system or item did not need major repair or replacement, the new one qualifies only when it brings an accessibility, conservation or security benefit (s. 126(8)). Re-leasing renovations, cosmetic upgrades and appliance repairs do not belong in an L5.
  • Utilities. Utility costs left the list of AGI grounds on January 1, 2018.
  • Your own security people. A superintendent or any other employee doing security is not a claimable cost.

Timeline

Step Rule Source
File the L5 90 days or more before the FED; otherwise add a Request to Shorten Time, and if it is refused the L5 is not accepted RTA s. 126(3)
Capital work completed During the 18 months that end 90 days before the FED (Guideline 14 reads "completed" as physically finished) O. Reg. 516/06, s. 26(2)
Capital cost "incurred" Paid in full by filing, apart from statutory construction holdback s. 18
Tax years Base year: the latest full calendar year before the filing deadline. Reference year: the one before s. 19
Security years Base year: a 12-month accounting period of your choice that ends by the filing deadline. If a past AGI order covered the complex, reuse its start and end days s. 19
N1 to each tenant 90 days' written notice, even for an ordered increase, and 12 months since the last increase or the tenancy's start RTA ss. 116(2), 119
Serve, if directed A minimum of 30 days ahead of an oral hearing, or within 20 days of a notice of written hearing Rules 5.7, 5.6
Certificate of Service 5 days after serving Rule 5.15
Take each increase Inside its 12-month window, or lose it O. Reg. 516/06, s. 32

Example with a leap year. Suppose the FED is March 1, 2028. February 2028 has 29 days, so counting back 90 days lands on December 2, 2027: that is the filing deadline. Eligible capital work is whatever was completed in the roughly 18 months from June 2, 2026 through December 2, 2027. The tax base year is 2026, and 2025 serves as the reference year.

Tenant's side of the timeline

Before the Board rules, a tenant's rent goes up by no more than the smaller of the N1 figure and the guideline figure (s. 126(5)). A notice of written hearing gives tenants 50 days to send a written response (Rule 11). A tenancy that began after a capital item was completed cannot be charged for that item.

The form, part by part

The L5 in use is dated 2025/09; read it with the official L5 instructions.

Language and accommodation. Tick French or English. Requests for accommodation are made on their own form (the Accommodation Request), never written onto the L5.

Part 1 – General Information

  • Complex address. Street address and postal code. A unit number appears only in a one-unit application. Where the complex has several street addresses, add the Additional Residential Addresses form and give each address in full with its postal code.
  • Rental Unit Information (RUI). No tenant names appear on the L5 itself. They are entered in the L5 – Rental Unit Information form, an Excel workbook (more below).
  • FED. Written DD/MM/YYYY. Any increase granted runs retroactively from here.
  • Previous Order. Got an earlier AGI order on this complex? Enter the latest file number.
  • Landlord. Corporations fill in "Company Name". Co-landlords are added on a Schedule of Parties. A tick in the "Email" box is consent, by all applicants, to service by email.

Part 2 – Reasons for Your Application

Three choices, any combination: Reason 1 for taxes and charges, Reason 2 for security, Reason 3 for capital work. Below them, give two counts: rental units in the complex overall, and units included. The RUI Summary tab must show identical numbers. If it doesn't, the RUI governs.

Part 3 – Outstanding Elevator Work

Is there an elevator for tenant use? If yes, report any LTB order for elevator repairs, any work order, and any order made under s. 21 of the Technical Standards and Safety Act, 2000, and whether each is done. Outstanding elevator work, including work whose compliance date is still in the future, gets summarized on Schedule 3 (RTA s. 126(3.1)).

Part 4 – Signature

Landlord or legal representative, with signature and date. Representatives also list their Law Society number and how to reach them.

Schedule 1 – Taxes and security (Reasons 1 and 2)

  • A. Municipal taxes and charges. Costs for the reference year and for the base year. Answer whether all units fall under the roll numbers claimed. Disclose every refund, rebate, grant or other assistance, and say if the numbers already have them taken out.
  • B. Security services. The two accounting periods (reference and base) with their precise dates, the cost in each, and whether all units benefit.
  • C. Non-residential portions. If part of a cost serves commercial space or a different complex, suggest an allocation (by revenue, market value or floor area) and give the data behind it.
  • D. Units that differ from the RUI. Name any unit that is in the capital claim but untouched by the tax or security claim.
  • E. Rents of affected units. Column 1 totals monthly rent across covered units; Column 2 totals it across every affected unit. Use the complex's average rent for a vacant unit.

Schedule 2 – Capital work (Reason 3)

  • A. Description and costs. Each item gets: a number; what it was; the completion date (by the instructions, the day the finished work was fully paid); its useful life; contract, material and labour costs; the landlord's own labour, valued as hours multiplied by a reasonable rate with no management time; and a total. Look up useful life in the Schedule to O. Reg. 516/06. Items shown there as lasting less than 10 years are deemed to last 10. For a used item, subtract the life it had already used up. Leased equipment is claimed at what it was worth on the market when the lease started.
  • Eligibility table. Tie each item to an s. 126(7) category and explain the fit.
  • B. Units not affected. Only for items that benefit some units and not others, like a stove replaced in a single suite. Leave it empty for work such as a new roof that serves everyone.
  • C. Major repair or replacement. For each item: did the thing being replaced need major repair or replacement, and when was it last replaced? Where the answer is no, describe the accessibility, conservation or security gain.
  • D. Insurance, grants and other proceeds. Insurance money, forgivable loans, government grants, and anything recovered through salvage, trade-in or resale. Every dollar reduces the claimable cost.
  • E. Non-residential portions. Handled the way Schedule 1, Part C is.

Capital Expenditures: Additional Details (one per item)

Think of this as a contents page for the proof. One row per invoice, then the payment method, the cheque number, how much was paid and when, and the share that relates to this item. Add the column up: it has to equal the Schedule 2 cost. Sort the invoices and payment records to follow the same order.

The RUI workbook

The Tenant Information tab needs every residential unit, in order, with one row per tenant (first and last name). For each: street address; covered, Yes or No; the full current rent, counting extras charged separately such as parking; payment frequency; and, for a covered unit whose current tenancy started inside the 18 months before the filing deadline, that start date. A vacant unit shows $0.00. In a capital claim, uncovered and vacant units are listed too. Name the file using the complex address and the FED.

Filing and paying

Email route. One message to [email protected] carrying the L5 and schedules, the Excel RUI, all evidence, and a CEAD for each item. Subject line: the complex address and the FED. A secure payment link comes back by email and is good for three calendar days. Do not type card numbers into any email.

Paper route (mail, courier, ServiceOntario). Include the application and evidence on paper. Capital-expenditure claims also need a second photocopy of the application and of the entire body of evidence, plus the evidence in electronic form, by email or on a USB key. Email the RUI on its own to [email protected]. Pay with a money order or certified cheque made out to the "Minister of Finance", or with Visa or Mastercard on the Credit Card Payment Form. Debit and cash work only at ServiceOntario.

The LTB fees page has the schedule; no refunds are given. A Fee Waiver Request exists for those who cannot pay.

Getting materials to tenants. In a capital claim, tell the tenants how they can see the evidence. Any tenant who asks gets a PDF free of charge, or, by mutual agreement, paper copies at reasonable out-of-pocket cost. A landlord whose office is in the complex or nearby must also keep a copy there that tenants can look at during business hours (O. Reg. 516/06, s. 23).

Eleven ways an L5 goes wrong

  1. The 90 days are short. No granted Request to Shorten Time, no acceptance. People often count from the day they posted it. Under Rule 4.8, though, a mailed filing lands on the fifth day after posting that is not a holiday, and a couriered one on the next business day.
  2. A piece is missing. The instructions are blunt: leave out a required item (the RUI, a CEAD, the extra copies) and the application is refused. Late evidence can also be excluded, and Guideline 14 warns that an extension "will rarely be granted" if the applicant's own neglect caused the gap.
  3. Wrong window or unpaid. Anything finished before the 18 months began, or still owing (other than holdback) when you file, is thrown out. Grouping phases of a project does not drag earlier work into range.
  4. Ineligible items. Painting, new flooring to re-rent, routine elevator maintenance, appliance repairs, and replacing a working item with the same thing (no conservation, accessibility or security gain) all get struck.
  5. Billing newer tenants for older work. Section 126(9) forbids it. Leaving the RUI's "Date Current Tenancy Began" column empty is the usual cause.
  6. Undisclosed insurance, grants or rebates. These reduce the cost and must be shown. Hiding them weakens the whole claim, and a false or misleading filing is an offence.
  7. Unresolved elevator or repair problems. If open elevator orders are left off Schedule 3, or a serious maintenance breach exists now, the Board can dismiss the claim for affected units or hold off the increase until things are fixed (s. 126(13)).
  8. In-house security. It isn't third-party, so it isn't claimable.
  9. A bad N1, or none at all. An increase charged without 90 days' written notice is void (s. 116(4)), order or no order.
  10. Service skipped or unproved. The Board may dismiss when directed service never happens (Rule 5.17). For capital claims, missing the case management hearing can lead to dismissal as abandoned (Guideline 14).
  11. The building is exempt. If the s. 6.1 November 15, 2018 exemption applies, s. 126 does not.

After filing

Board staff screen the file and then set a hearing. Tax and security claims are often decided in writing. Capital-expenditure claims usually get an oral hearing, preceded by a case management hearing. When the hearing is in writing, tenants have 50 days from the notice to file a response, and the landlord has until day 65 to reply (Rule 11). Any settlement reached through mediation is capped at guideline plus 3% (RTA s. 194(3)).

Pending a decision, tenants owe the smaller of the guideline amount and the N1 amount (s. 126(5)). When an order issues three months or more after the FED, the Board may let tenants pay the retroactive portion over a period of up to 12 months. If the landlord is directed to serve the order, service is due 7 days after it issues, and the Certificate of Service 5 days after that. For orders issued from July 1, 2026 on, a party seeking a review must ask within 15 days.

What tenants can look at

Tenants may file a written response or take part in the hearing. Useful questions: Was each item finished inside the 18-month window, and paid for? Is anything cosmetic, or a straight swap of something that worked? Were insurance money and grants deducted? Did your tenancy begin after the work? Are there serious maintenance problems or open elevator orders affecting your unit?

Recent changes

  • July 1, 2026 (Bill 60). Review requests on orders issued from that date must be made within 15 days rather than 30 (Rule 26.5). That shortened the landlord's time to serve an AGI order, where directed, from 14 days after issue to 7, with the Certificate of Service following within 5 days of service.
  • September 21, 2026. New Rules of Procedure came in, but the L5 was not replaced. The form dated 2025/09 and the November 2025 instructions remain the current versions.
  • Unchanged. Bill 60 did not touch the AGI substance: the three grounds, the 90-day rule, the 18-month window and the 3% ceiling. Section 126, in the RTA consolidation in force since September 21, 2026, still reads as it did in 2017.

FAQ

Is there a limit on how high an AGI can go?

For municipal tax increases, no fixed limit. For capital work and security, the portion above the guideline tops out at 3% a year, for a maximum of three consecutive years, so anything beyond 9% in total is lost.

Can the L5 be filed online through the Portal?

No. Use [email protected], mail, courier or a ServiceOntario centre. Whichever you choose, the RUI goes by email in Excel.

If the landlord files an L5, is an N1 still needed?

Yes. Every tenant must receive 90 days' written notice of the increase, including one authorized by an AGI order. There is a box on the N1 to show an above-guideline application has been filed.

Can work done to re-rent an empty unit be charged to the next tenant?

As a rule, no. If the new tenancy started after the work was done, that capital expenditure is not eligible for the unit, and mostly cosmetic or luxury work is excluded anyway.

The AGI order has issued and the extra rent is unpaid. What happens?

If a valid N1 for the higher rent was served, the tenant owes the gap going back to the FED. When the order came three or more months after the FED, the Board can spread that amount over as long as 12 months.

Official sources