An Ontario tenant who agreed to an above-guideline increase on an N10, only to see the promised capital work or new service never materialize, the tenant can file a T4 with the Landlord and Tenant Board (LTB). A successful T4 can wipe out the above-guideline portion of the increase back to the day it started and require the landlord to refund it, so a landlord on the receiving end needs to know how the claim is measured and how to answer it.
At a glance
| Filed by | A tenant, or former tenant, who is party to an N10 with the landlord |
| Basis | The landlord did not fulfil what the N10 promised |
| Time limit | Two years from the date the agreed increase took effect |
| Filing route | Email, mail, courier or ServiceOntario (the Portal is not available); service on the landlord is done by the LTB |
| Fee | $53 |
| Afterwards | A Request to Review an Order (15 days) is available to either side |
The agreement behind the claim
The Residential Tenancies Act, 2006 (RTA), s. 121, allows landlord and tenant to agree on an increase above the guideline in exchange for a defined capital expenditure, or for an additional or new service. The rules on that agreement (s. 121(2)–(5)) are strict:
- it has to be on the Board's N10 form;
- the increase cannot exceed the guideline plus 3% of the prior lawful rent;
- written notice from the tenant within five days cancels it; and
- it cannot take effect until at least six days after signing.
Section 122(1) then lets the tenant or former tenant apply where the landlord:
- did not carry out, wholly or partly, an undertaking given in the agreement;
- rested the agreement on work the landlord said had been done when it had not; or
- rested it on services the landlord said had been provided when they had not.
The remedy, under s. 122(3), is that the LTB may declare some or all of the above-guideline portion invalid from its effective date and order a rebate.
A worked example
Suppose the previous lawful rent was $2,000 and the increase took effect in 2027, when the guideline was 1.9%. The guideline increase alone would be $38. The N10 ceiling is $38 plus 3% of $2,000 ($60), or $98. If the parties agreed to $90 a month, the above-guideline portion is $52 a month. Should the LTB find that none of the promised work was done and invalidate that entire portion for 12 months of payments, the rebate would be $624. The $38 guideline amount is untouched either way.
Where the T4 does and does not fit
A T4 requires a signed N10. Where rent went up with no agreement, or beyond what the guideline permits, the tenant's tool is a T1. Where a service was provided and then withdrawn, the matter belongs on a T3.
The two-year window
Under s. 122(2), the tenant loses the right to apply once two years have passed since the increase took effect. The count starts from the effective date written on the N10, not the day it was signed. An N10 increase effective March 1, 2027, for instance, can be challenged on a T4 until March 1, 2029.
The form also asks the tenant for a rent history covering two years, or the whole tenancy if it is shorter.
What the tenant puts on the T4
The current version is 01/04/2022. Knowing its contents tells you what you will need to answer.
- Part 1, General Information: names and contact details for the parties, the unit address, and related file numbers.
- Part 2, Explanation of your application: when the rent went up and by how much over the guideline; a calculation comparing the permitted guideline increase with the agreed increase, the gap being the above-guideline charge; an explanation of which terms of the N10 the landlord failed to meet; and two years of rent history.
- Part 3, Signature, then the payment page and a request form for accommodation or French-language services.
How it reaches the LTB
The Tribunals Ontario Portal does not take the T4. The tenant can send it by mail or courier to 15 Grosvenor Street in Toronto, hand it in at any ServiceOntario centre taking LTB filings, or email it to ltbpayments@ontario.ca, after which a payment link arrives that expires in three calendar days. The filing fee is $53.
Answering a T4 as the landlord
Start with the timing. Find the signed N10 and note its effective date. A T4 arriving after the two-year mark is out of time.
Prove what you did. For capital work, collect the permits, the invoices, completion notices, sign-offs from contractors and dated photos. For a service, gather records showing it has been in place since the agreed date.
Document partial performance precisely. Because the LTB can strike down "some or all" of the increase, showing exactly what was completed, even if the job was not finished, can reduce what you repay.
Audit the numbers. Check the guideline rate for the year the increase took effect and confirm the agreed increase stayed within the guideline plus 3%. If it went over, expect the excess to be attacked too.
Meet the disclosure deadlines. Rules 19.1–19.2 require disclosure a week ahead of the hearing, or 5 days ahead for reply evidence.
Weak points in a T4
- Filed too late. Section 122(2) bars a claim brought after the two-year window.
- No N10 at all. Without a s. 121 agreement, there is nothing for a T4 to enforce.
- Targeting the guideline portion. Only the part above the guideline is recoverable on a T4; the guideline increase stands.
- No breach identified. The tenant has to say which terms of the agreement were not met.
- Wrong channel or no fee. The T4 must go by mail, courier, ServiceOntario or email, with the fee paid.
After the hearing
The LTB hears the application and issues an order. A successful tenant's order fixes the invalid portion and the amount to be refunded. A party unhappy with the result has two routes: a review request within 15 days (for orders dated July 1, 2026 or later), or, on a question of law, an appeal to the Divisional Court within 30 days under s. 210.
Frequently asked questions
What is the most an N10 can raise the rent?
Under s. 121(3), that year's guideline plus an extra 3% of the rent lawfully charged before.
Can a tenant change their mind after signing an N10?
Yes. A written cancellation within five days of signing ends it. Separately, the increase cannot begin until at least six days after signing.
What does a tenant recover on a successful T4?
Some or all of the above-guideline amount can be declared invalid back to its start date, with the landlord ordered to refund the excess.
Is there a deadline for completing the promised work?
The N10 includes a space for the parties to write down when the work was or would be finished, or when the service began or would begin. The LTB compares that date, and the other details written on the N10, against what was actually delivered.