Landlords can, in some circumstance, apply to the Landlord and Tenant Board for an increase, which is higher than the annual guideline.  The landlord must give all tenants who are affected written notice that they, the landlord, have applied for a rent increase which is higher than the rent control guideline.  This should be given to tenants in the Notice of Rent Increase form (form N1).  In most applications where the landlord has applied for an increase, the TPA places a limit or cap of allowing rent increases of no more than 4% above the rent guideline.

In some cases, the landlord does not have to apply to the Landlord and Tenant Board but can still increase the rent by more than the guideline.  For example, if you moved in to your apartment before the TPA came into effect, and you are paying less than the "maximum rent" then your landlord can increase the rent up to the "maximum rent" without applying to the Landlord and Tenant Board.  In this situation the landlord must still give 90 days written notice and the rent increase must occur at least 12 months after the previous rent increase.

Under the TPA, landlords cannot increase the rent they charge tenants by moving up to the "maximum rent" and applying for a rent increase above the rent guideline at the same time.  For example:  You are currently paying $800 per month.  The lawful rent is actually $900 per month.  The landlord has applied for a rent increase of 7%.  The landlord may not implement the 7% increase.  He is only entitled to increase your rent to the lawful rent at one time.  Thus, the most that the landlord should be able to collect at this time is $900, NOT $900 (lawful rent) + 7%.