In Ontario, a landlord who wants more rent from a sitting tenant normally has to serve an N1 Notice of Rent Increase, one of the Landlord and Tenant Board (LTB) forms. Three conditions apply to every one. The notice is in writing. The tenant gets it 90 days or more before the new rent starts. And the new rent cannot kick in until a full year has passed since the previous increase, or since the tenant moved in. In most units, the size of the raise is limited by the yearly guideline: 1.9% for 2027.
Quick summary
| Used by | Landlords of most rental units (not care homes, not partially exempt units, not where an N10 has been signed) |
| Timing | Given 90 or more days ahead, for an increase that lands 12 or more months after the previous one |
| Notice | 90 days in writing; mailing adds 5 days |
| Service | On each tenant. The LTB never receives a copy |
| Fee | None for the notice. Going above guideline takes an L5 application: $233 covers the first ten units, $10 each after that, $1,000 at most |
| Next form | Only an L5, and only if the increase is above guideline |
The rules behind the form
Start with RTA s. 116: no rent increase without written notice, on a Board-approved form, given 90 days or more in advance, stating the new rent. Skip that and the increase is void. The landlord has to give a fresh notice before charging it (s. 116(4)).
Three more rules travel with the notice.
One increase per 12 months (s. 119). Measure from the tenant's previous increase or, if they have never had one, from the date the unit was first rented to them. After an assignment, the clock (per the N1 instructions) runs from whenever the outgoing tenant was last increased.
The guideline cap (s. 120). In most units the raise may not exceed that calendar year's guideline. Going higher requires one of three things: the Board's approval of an above-guideline increase (s. 126); a signed N10 agreement (s. 121); or a s. 123 agreement adding a parking space or prescribed service. By law the guideline can never be above 2.5%. The 2026 figure was 2.1%, and the 2027 figure is 1.9%.
One year to object (s. 136). If nobody applies to challenge an increase within a year of when it was first charged, it is treated as lawful.
Newer units with no cap (s. 6.1)
A unit escapes the guideline in either of two cases:
- the building, or the addition, had no residential occupancy at all on or before November 15, 2018; or
- a house holding no more than two units gains a new second unit after that date, and the s. 6.1(3) conditions are satisfied.
Even so, the 90-day written notice and the 12-month gap remain mandatory for them, because s. 6.1 leaves ss. 116 and 119 in place. Ontario suggests noting the exemption in the lease and keeping permits, occupancy records and similar proof, because it is the landlord who must prove the exemption (s. 6.1(6)).
Which notice to use
Reach for the N1 when raising rent in a rent-controlled unit, whether by the guideline or by more under an L5 that is approved or pending.
Per the N1 instructions, switch forms in these cases:
| Situation | Form |
|---|---|
| The unit is exempt from the limits on increase amounts (for example most non-profit and social housing) | N2 |
| A care home unit | N3 |
| Landlord and tenant have signed a deal: a bigger raise, paid for by capital work or an added service | N10, with no N1 |
The grey zone: s. 6.1 units. Read literally, the N1 instructions point exempt units to the N2. Yet they were written in 2015 (the N2's in 2017), before s. 6.1 existed, and nothing on the N1 lets you tick an increase with no ceiling. Which form the Board wants for s. 6.1 units remains unpublished. Either way, it must be an approved form giving 90 or more days' written notice (s. 116). Confirm with the LTB before you serve.
Rent for a new tenant is simply negotiated; it does not count as an increase.
Counting the days
- 90 days, in writing. Day one is the day after delivery (Rule 1.13). Mail counts as delivered five days after posting (RTA s. 191(3)), which means five extra days. The Board has no power to cut either the 90-day or the 12-month period (O. Reg. 516/06, s. 56).
- A year between increases. Worked example: the last increase took effect July 1, 2026, so the next can take effect July 1, 2027. Hand-delivered, the N1 has to reach the tenant no later than April 2, 2027. By mail, it has to be posted no later than March 28, 2027, which makes April 2 the deemed date.
- Above-guideline applications go in at least 90 days ahead of the earliest increase date they cover (s. 126(3)).
- Tenant challenges. An increase becomes lawful once a year has passed since it was first charged without any challenge (s. 136).
Completing the N1
It is two pages long; use version 01/04/2022.
To: (Tenant's name and address). Name each tenant in the unit. Add a mailing address if it is different.
From: (Landlord's name and address). List all landlords and give a mailing address.
Address of the Rental Unit. The full street address. Include the unit and the postal code.
Your New Rent. - "On dd/mm/yyyy": the start date of the new rent, which has to respect both the 90-day notice and the 12-month gap. - "per month / week / other": the rental period. - "your rent will increase to $": the whole new rent, not just the increase. The form's own wording says it takes in basic rent and any separate payments to the landlord for services.
Explanation of the Rent Increase. State the raise two ways: dollars for each rental period and a percentage. Using the 2027 guideline on a monthly rent of $1,960.00: 1.9% of $1,960.00 is $37.24, so the new rent is $1,997.24. Write that as $37.24 per month, 1.9%.
The checkbox. Shade exactly one: - the guideline-or-less box, for which no approval is required; or - the box for an increase above the guideline, adding 1 where the Board has already granted it by order, or 2 where your application for it is in.
Page 2: Important Information About the Law. Leave the printed text alone. It explains to the tenant that increases are limited to once a year, that signing a new lease is not required, and that a pending above-guideline application means paying only the guideline amount for now.
Signature. Mark whether you are the landlord or a representative; print your name and a phone number; then sign with the date. Representatives also complete their own section.
Delivering it
The N1 instructions list these methods:
- handing it over, either to the tenant or to any adult at the unit;
- dropping it in the tenant's mailbox or usual mail spot;
- pushing it under the door, or through the slot;
- by mail or courier;
- by fax to the tenant's home or workplace.
Email is acceptable if the tenant agreed to it in writing (Rule 3.1). Never post it on the door. Serve every tenant and keep a record of how and when.
If you are the tenant receiving an N1
Check four things: Is it on the official form? Were you given at least 90 days (95 for a mailed notice)? Has a year passed since your last increase or your move-in? Is the increase at or below the guideline, or is an LTB order or pending L5 ticked? You do not have to sign the N1 or a new lease. If an L5 is pending, you only owe the guideline amount until the Board decides. If you think the increase is unlawful, you can apply to the LTB, but act within a year of first paying it: after that, s. 136 treats it as lawful.
Where N1s go wrong
- Short notice. Usually the five mailing days were forgotten. The increase is void (s. 116(4)). Moving the date is not a fix; a new N1 is needed, followed by a new 90 days.
- Too soon after the last increase. Under twelve months since the previous raise or the start of the tenancy means no lawful increase.
- Above guideline with no N10 and no Board order. For a rent-controlled unit, anything above guideline is unlawful. While an L5 is pending, the tenant pays only the guideline amount until the order comes out.
- The wrong year's percentage. The effective date decides the year. A 2027 start uses 1.9%; a 2026 start used 2.1%.
- The wrong starting rent. The base is today's lawful rent. One void increase in the past corrupts each calculation built on it.
- A text, a phone call or a homemade letter. Section 116(3) demands the Board-approved form. Without it, the increase is void.
- A later eviction case falls apart. Interpretation Guideline 10 describes an N4 held invalid because its arrears rested on an "incorrect lawful rent", traced back to a missing valid rent increase notice. A defective N1 can undo a non-payment eviction down the road.
- Taped to the door, or emailed with no written consent. That is defective service, and the increase is in jeopardy unless you can show the tenant actually got it in time (s. 191(2)).
After the notice
Nothing gets filed. From the effective date, the higher rent is owed. A tenant who stays on, rather than giving notice to leave, is treated by s. 118 as accepting any increase the Act allows.
If the tenant thinks the increase is unlawful, they can apply to the LTB. An unchallenged increase becomes lawful after one year (s. 136), so landlords should keep the N1, the proof of service and the guideline math at least that long.
Common questions
How big can a 2027 rent increase be?
For the typical rent-controlled unit, up to 1.9%, on 90 days' written notice, a year or more after the previous raise. Anything higher needs an L5 order from the LTB or a signed N10.
My building was first occupied after November 15, 2018. Do I still serve a notice?
Yes. There is no cap on the amount, yet ss. 116 and 119 of the RTA still require 90 days in writing and a year between raises. Which Board form fits is unclear from the instructions; read the grey-zone note earlier on this page.
The notice was short of 90 days. Now what?
The increase is void. Serve a new notice and count a fresh 90 days from it.
Is the tenant required to sign the N1?
No. A notice is not a contract, and no signature from the tenant (on the N1 or on a fresh lease) is needed for it to work.