Many Ontario landlords raise rent every year without fully understanding the process — and some make errors that either void the increase or expose them to a tenant claim. Getting the annual rent increase right requires proper notice, the right form, and strict attention to timing.
Use the N1 Form
The N1 — Notice of Rent Increase — is the proper form for providing written notice of a rent increase. It must be completed accurately, showing the current rent, the new rent amount, and the effective date of the increase. Using a letter or email instead of the N1 may not satisfy the notice requirement.
Calculate the 90-Day Notice Period Carefully
The 90-day notice period begins on the day after service is deemed complete — not on the day you hand the form to the tenant. If you serve by mail, add five days to the deemed service date, then count 90 days from there. Miscounting by even a day can mean the increase takes effect a month later than planned.
The Increase Must Be Within the Guideline
For guideline-applicable units, the increase cannot exceed the current year’s guideline percentage. Even if you include a higher percentage on the N1, the maximum enforceable amount is the guideline. The government publishes the guideline well in advance — confirm the current year’s percentage before sending the N1.
Keep Proof of Service
Complete a Certificate of Service when you deliver the N1. If the tenant disputes the rent increase at the LTB, you need to prove you gave proper notice. Without documentation of service, the increase may be found invalid even if the form was completed correctly.
What Comes Next
Stonegate handles N1 preparation and service for Ontario landlords. Book a free call at https://calendly.com/stonegatelegalservices/20min.
▶ Watch: Rent Increases in Ontario Explained for Landlords
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