You are governed by the Tenant Protection Act....if I were you, the next thing you should think of reading is the Act. As it can be your ally or your nemesis!

Here is what it states:
"Rent for a current tenant

When the rent can increase
In most cases, the rent can be increased if at least 12 months have passed since a tenant first moved in or since his or her last increase.

A landlord must give at least 90 days notice in writing of any rent increase. There is a proper form for this notice available from the Tribunal.

A landlord can propose a rent increase that is not above the "rent increase guideline," or one that is "above the guideline."

The rent increase guideline
The guideline is set each year by the Ontario Government, and announced by August 31. The figure announced applies to rent increases that start on or after January 1 of the following year.

The year 2005 guideline is 1.5 %. The year 2006 guideline is 2.1 %.

A guideline increase does not need approval of the Tribunal.

In most cases, an increase above the guideline needs approval of the Tribunal before it can be charged.

Increase above the guideline

A landlord can apply to the Tribunal for an increase above the guideline if:

the landlord’s costs for municipal taxes and charges, and/or utilities have increased significantly, or
the landlord has done major renovations or repairs, or
the landlord has added security services.
Rent increases for repairs, renovations or security services cannot be more than 4% on top of the guideline each year. For increases in the cost of municipal taxes, charges or utilities, there is no limit on the amount of rent increase that can be charged.

A tenant can agree to an increase above the guideline if the landlord will do major renovations or repairs, buy new equipment, or add a new service for the tenant.

This agreement must be in writing, on a form obtained from the Tribunal. The highest increase that can be agreed to is 4% above the guideline.

A tenant has five days, after signing an agreement, to change their mind and tell their landlord in writing they do not agree to the increase.

If there is an agreement to a rent increase above the guideline, the landlord does not have to apply to the Tribunal for approval of the increase."

...good luck.