For most Ontario landlords, a rent increase starts with the N1 Notice of Rent Increase, a Landlord and Tenant Board form. Three conditions apply: the notice has to be written, it has to reach the tenant 90 or more days ahead of the increase, and the increase cannot take effect until at least 12 months have passed since the previous one or since the tenancy began. On most units the size of the increase is also limited by the yearly guideline, set at 1.9% for 2027.
At a glance
| Used by | Landlords of most residential units (not care homes, partially exempt units, or increases agreed on an N10) |
| Timing | 90 or more days before the new rent starts, and 12 or more months after the previous increase |
| Notice required | 90 days in writing; mailed notices need 5 extra days |
| Delivery | Given to each tenant; nothing is filed with the LTB |
| Cost | Nothing for the N1. Going above the guideline requires an L5 ($233 for the first ten units plus $10 for each additional unit, to a maximum of $1,000) |
| Next form | None, except where the increase depends on an L5 above-guideline application |
The legal basis for the N1
Under RTA s. 116, no landlord may raise the rent without first giving the tenant written notice, at least 90 days in advance, on a Board-approved form that states the new rent. Charging an increase without proper notice makes it void; the landlord has to serve a fresh notice before the increase can be taken (s. 116(4)).
The notice works together with three further rules.
The 12-month rule (s. 119). Twelve months or more must separate the new increase from the previous one; where the tenant has never had an increase, count from the start of their tenancy of the unit. For a unit assigned to the current tenant, the N1 instructions say to count from the last increase the previous tenant received.
The guideline cap (s. 120). On most units, the increase may not exceed the guideline for the calendar year in which it takes effect. There are three ways above it: an LTB above-guideline order (s. 126), an agreement under s. 121 (N10), or an agreement under s. 123 for an added parking space or prescribed service. By statute, the guideline can never exceed 2.5%. Ontario fixed it at 1.9% for 2027; for 2026 it was 2.1%.
Lawful by lapse of time (s. 136). If no one applies to challenge an increase within one year of the date it was first charged, it is deemed lawful.
Post-2018 units outside the guideline (s. 6.1)
The guideline does not cap the increase in two situations. One is where neither the building nor the addition had any part occupied for residential purposes on or before November 15, 2018. The other is a new second unit created after that date in a house with no more than two units, provided it meets the conditions in s. 6.1(3).
These units are still bound by the 90-day notice and the 12-month rule, because s. 6.1 does not lift ss. 116 or 119. Ontario advises noting the exemption in the lease and holding on to evidence such as permits and occupancy records, since the burden of proving the exemption is on the landlord (s. 6.1(6)).
Choosing the N1 (or another form)
The N1 is the form for an ordinary yearly increase on a rent-controlled unit, and for an above-guideline increase that an L5 has approved or that is the subject of a pending L5.
The N1 instructions direct you elsewhere in three cases:
- N2 for units exempt from the limits on how much rent can rise, for example most social and non-profit housing;
- N3 for a unit in a care home; and
- N10 where landlord and tenant have agreed to an above-guideline increase in return for capital work or a new service, in which case no N1 is required.
The post-November 15, 2018 unit is the awkward case. The N1 instructions send exempt units to the N2, but both the N1 instructions (2015) and the N2 instructions (2017) were drafted before s. 6.1 existed, and the tick-boxes on the N1 are not built for an uncapped increase. The LTB has published nothing on which form it wants for an s. 6.1 unit. Whatever you choose must be an approved form giving at least 90 days' written notice (s. 116), and it is sensible to confirm with the LTB before serving.
Remember too that the rent set for a new tenant at the start is not an "increase" at all; it is simply what you and that tenant agree.
Counting the time
Ninety days of written notice. The day you give the N1 is not counted (Rule 1.13). A mailed N1 is deemed given on the fifth day after mailing (RTA s. 191(3)), so build in five more days. Neither the 90 days nor the 12 months can be shortened by the LTB (O. Reg. 516/06, s. 56).
Twelve months apart. Suppose the rent last went up on July 1, 2026. The earliest next increase is July 1, 2027. To meet the 90 days, an N1 delivered by hand must be given no later than April 2, 2027; one sent by mail must be posted by March 28, 2027.
Above-guideline applications. An L5 must be filed 90 or more days before the earliest increase date it covers (s. 126(3)).
Tenant challenges. Once a year has passed from the first time an increase was charged, an unchallenged increase is deemed lawful (s. 136).
Completing the N1
The form in use is version 01/04/2022 and runs two pages.
Page 1
- To: (Tenant's name and address). List each tenant in the unit, adding a mailing address where it differs.
- From: (Landlord's name and address). List every landlord, with a mailing address.
- Address of the Rental Unit. Include the unit number and postal code.
- Your New Rent. In "On dd/mm/yyyy", enter the effective date, which must be at least 90 days after service and at least 12 months after the previous increase. In "your rent will increase to $", put the entire new rent; the form explains that this covers "the basic rent for your rental unit, plus any amount you pay separately to your landlord for services". Then mark the rent period: per month, week or other.
- Explanation of the Rent Increase. Show the increase in dollars per period and as a percentage. Using the 2027 guideline on a rent of $2,150.00: $2,150.00 × 1.9% = $40.85, giving new rent of $2,190.85, an increase of $40.85 a month or 1.9%.
- The boxes. Shade only one. Either the increase is "less than or equal to the rent increase guideline", which needs no approval, or it is "more than the rent increase guideline, but", in which case shade 1 where an LTB order has already approved it or 2 where your above-guideline application is pending.
Page 2 and signature
- Important Information About the Law. Do not alter this printed page. It explains the 12-month rule, tells the tenant that signing a new lease is not required, and advises that while an above-guideline application is undecided, only the guideline amount has to be paid.
- Signature. Shade Landlord or Representative, print the name and telephone number, then sign and date. Representatives must also fill in the representative section.
Giving the N1 to the tenant
According to the N1 instructions, these methods are permitted:
- handing it to the tenant, or to an adult in the unit;
- putting it in the mailbox or wherever mail is normally delivered;
- pushing it under the door or through a mail slot;
- sending it by mail or courier; or
- faxing it to the tenant's home or workplace.
Email is also allowed under Rule 3.1, but only with the tenant's written consent. Taping it to the door is not permitted. Each tenant should get a copy, and you should keep proof of how and when you delivered it.
Errors that make the increase void or unenforceable
- Short notice. Usually this comes from forgetting the five extra days for mail. The increase is void (s. 116(4)), and the fix is a new N1 followed by another full 90 days; changing the date on the old one does not work.
- Raising rent within 12 months. An increase that comes less than 12 months after the previous one, or after the tenant moved in, is not lawful.
- Going over the guideline with no order or N10. On a rent-controlled unit, anything above the guideline is unlawful. While your L5 awaits a decision, the tenant is only obliged to pay the guideline increase.
- The wrong year's percentage. The relevant guideline is the one for the calendar year in which the increase takes effect: 1.9% in 2027 and 2.1% in 2026.
- The wrong starting rent. Increases are calculated on the current lawful rent. If a previous increase was void, every calculation that rests on it is off.
- Notice by text, conversation or a home-made letter. Section 116(3) requires the approved form, and without it the increase is void.
- Damage to a later eviction case. Interpretation Guideline 10 refers to an N4 that failed because the arrears rested on an "incorrect lawful rent", the product of a notice of rent increase that had not been validly served. A defective N1 can therefore undermine a non-payment eviction years later, which is often when landlords first discover the problem.
- Door-posting, or email with no written consent. Service is defective, and the increase is vulnerable unless you can show the tenant actually received the notice on time (s. 191(2)).
After the N1 is served
There is nothing to file. The new rent is payable from the effective date. Under s. 118, a tenant who stays on without giving notice to terminate is treated as having accepted any increase the RTA allows.
A tenant who thinks the increase is unlawful may apply to the LTB. If a year passes without a challenge, the increase is deemed lawful (s. 136), so hold on to the N1, how and when you served it, and your arithmetic for no less than that year.
Frequently asked questions
What is the maximum rent increase in Ontario for 2027?
On most rent-controlled units, 1.9%, the 2027 guideline, with 90 days' written notice and a gap of 12 months or more since the last increase. Anything higher requires an LTB order on an L5 or a signed N10 agreement.
Does a unit first occupied after November 15, 2018 still need an N1?
The guideline does not limit the increase on those units, but RTA ss. 116 and 119, the 90-day written notice and the 12-month rule, continue to apply. The current instructions do not clearly say which LTB form to use; see the discussion above.
I gave less than 90 days' notice. What now?
The increase is void. Start over: serve a fresh N1 and let a full 90 days run from it.
Must the tenant sign the N1 for the increase to work?
No. The N1 is a notice rather than an agreement, so the increase takes effect without the tenant signing it or a new lease.