What option does a landlord have if they've already raised rent to the maximum this year?

The correct option involves the landlord's ability to apply for an Above Guideline Increase (AGI) for extraordinary costs. Under the Ontario Residential Tenancies Act, landlords are permitted to raise rents only within designated limits each year. However, if they incur significant expenses that are necessary for maintaining or improving the rental property—such as major renovations, repairs, or capital expenditures—they can seek approval for an AGI.

This is important as it allows landlords to recoup some of the additional costs that are not covered by the standard rent increase limits. An AGI application requires the landlord to provide documentation evidencing the costs incurred and may be subject to review by the landlord and tenant board.

While other options might seem viable, they do not give landlords the flexibility necessary to manage unforeseen expenses or significant property improvements within the framework of Ontario's rent control laws. For example, simply waiting until next year does not address immediate financial needs created by extraordinary costs; similarly, charging extra fees for services without following due regulatory process would not typically be permissible under residential tenancy regulations.