Retirement homes and other Ontario care homes use the Landlord and Tenant Board's N3 to raise what a tenant pays, whether that means the rent, the care and meal charges, or the two together. The two halves of the bill are governed differently. Rent is limited by the annual guideline (1.9% in 2027) and can only go up once every 12 months. Care and meal charges have no ceiling and no waiting period. What they share is a minimum of 90 days' written notice.
Summary
| Used by | Landlords of care home units covered by rent control |
| When | Ahead of any increase to rent, care service charges or meal charges |
| Notice | 90 days or more in writing, for each type of increase |
| Service | Given to the tenant, plus a copy to any guardian or attorney; never filed |
| Fee | None; an above-guideline rent increase requires an L5 |
| What follows | Nothing, unless the increase depends on an LTB order made on an L5 |
Two kinds of increase on one form
The RTA, s. 2(1) defines a care home as a residential complex occupied, or meant to be occupied, so that people can receive care services, even if that is not its main purpose. Care services are health care, rehabilitative or therapeutic services, and help with daily living.
The rent
Rent increases in a care home follow the same three rules as elsewhere (RTA ss. 116, 119, 120):
- written notice of 90 days or more;
- 12 or more months since the previous increase or since move-in;
- a cap at the guideline, which only an N10 or an order of the LTB can lift.
The province confirms that, in care homes, the guideline covers only the rent and not services like nursing, meals or housekeeping (ontario.ca).
Charges for care and meals
RTA s. 150 sets a separate regime. A charge increase needs written notice of 90 days or more, on the approved form, that states the new charges. Without proper notice the increase is void and you have to start again. According to the N3 instructions, these charges carry no 12-month interval and no cap.
The information package comes first
Both kinds of increase depend on one prior step. RTA s. 140 obliges the landlord to hand every incoming care home tenant a prescribed information package for care homes, and until it has been given, the landlord may not serve any notice increasing rent, care charges or meal charges.
Right form, wrong form
The N3 is for a care home unit under rent control when you are raising rent, care charges, meal charges or a combination.
Choose differently if:
| Situation | What to do |
|---|---|
| Rent increase limits do not apply to the unit (RTA s. 7 is one example) | Raise the rent on an N2; per the N3 instructions, care and meal charges on such a unit can be raised without any notice |
| The tenant asks for and accepts an additional service or meal, or a step up in an existing one (say, therapy rising from 5 to 10 hours weekly) | The N3 instructions dispense with both notice and the 90-day wait |
| Both sides consent to rent above the guideline in exchange for capital work or a new service | The N10 is the form |
Timing
- Ninety days per increase. The day of service is not counted, and mailing adds five days (RTA s. 191(3)). Neither the 90 days nor the 12-month interval can be shortened by the LTB (O. Reg. 516/06, s. 56).
- Twelve months between rent increases. This applies to rent alone, not to care or meal charges.
- The tenant's way out. A care home tenant may end the tenancy at any time with 30 days' notice and, having done so, may require care services and meals to stop on 10 days' notice (RTA s. 145).
Completing the N3
Version 01/04/2022, two pages, is current.
To. Every tenant's name and address. The instructions ask for a separate mailing address wherever a tenant's mail goes elsewhere.
From. Every landlord's name, with a mailing address.
Address of the Rental Unit. Complete address, unit number and postal code.
Your New Rent and Charges – effective date. The "On dd/mm/yyyy" date must be 90 or more days away, and, if rent is changing, 12 or more months after the last rent increase.
New rent. The rent line takes the rent figure alone and the period (month, week or other), with no care or meal charges mixed in.
Approval box. Tick one of two statements: the new rent needs no approval, or it requires an order of the Board. The second is for an above-guideline increase resting on an L5. Ignore the 2015 instructions' description of extra boxes distinguishing approved from applied-for orders; today's form has just the two.
New care and meal charges. The charges line takes those amounts alone, with no rent, and the period.
Total. The line beginning "On the date of the increase" asks for the combined total of rent and charges. As an example: a current rent of $2,400.00 raised by the 1.9% guideline becomes $2,445.60; with new care and meal charges of $1,850.00, the monthly total is $4,295.60.
Important Information About the Law (pages 1 and 2). Leave the printed text as it is.
Signature. Mark whether you are the landlord or a representative, then print your name and phone number, sign and date. Representatives also fill in their own section.
Delivering the notice
The N3 instructions allow you to:
- give it personally to the tenant or to any adult at the unit;
- put it in the mailbox, or wherever the mail usually goes;
- slip it through the mail slot or beneath the door;
- mail or courier it; or
- fax it.
Rule 3.1 adds email where the tenant has given written consent. Taping it to the door is not a permitted method. If someone holds a power of attorney for the tenant, or acts as guardian or substitute decision-maker, the instructions say a copy should go to them too. In a care home that step often decides whether anyone able to respond actually sees the notice.
How N3 increases fail
- No information package before the notice. Section 140(2) prohibits the notice, so the increase rests on nothing valid.
- Fewer than 90 days' notice, for rent or for charges. Sections 116(4) and 150(3) make the increase void, and a fresh notice is needed.
- Blurring the two lines. Put care costs on the rent line and a lawful charge increase can read as rent rising above the guideline; put rent on the charges line and a rent increase can appear to dodge the 12-month rule. Each figure belongs on its own line.
- Applying the wrong rules. Treating care and meal charges as subject to the guideline and 12-month rule, or forgetting that the rent is, gets the notice wrong either way.
- Leaving out the guardian or attorney. The instructions recommend a copy. Without one, expect argument over whether the notice ever reached someone able to deal with it.
- Door-posting, or email without written consent. Under s. 191(2), service fails unless you prove the tenant really received the notice on time.
After service
Nothing goes to the LTB. The new amounts take effect on the effective date. Where an above-guideline rent increase awaits an L5 order still to be issued, the tenant can pay just the guideline increase in the meantime and may owe the balance once the order issues (form, item 3).
Questions from care home operators
Is a retirement home bound by the rent increase guideline?
For the rent portion of the tenant's bill, yes: 1.9% for 2027. Charges for care services and meals are not subject to it.
How often can care or meal charges go up?
The 12-month rule does not apply to them. Each one still requires the N3 and at least 90 days' written notice, exempt units aside.
A tenant asked for a new service. Do I need an N3 before charging for it?
No. Per the N3 instructions, once the tenant agrees to an added service or meal, or an increased level of an existing one, you may charge for it straight away, without notice.
Does a care home tenant have to give 60 days' notice to leave?
No. Thirty days' notice is enough for a care home tenant (RTA s. 145).