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Ontario LTB guide

How to increase rent in Ontario

In Ontario you can raise a tenant's rent, but only once a year, only with proper written notice, and, for most units, only up to a limit the province sets each year. Here's how to do it correctly using Form N1, Notice of Rent Increase.

The three basic rules

  • Once every 12 months. At least 12 months must pass between increases (and since the tenancy began).
  • 90 days written notice, given on the proper form (the N1) before the increase date.
  • Within the guideline, for most units (see below).

The rent increase guideline

Each year the Province publishes a rent increase guideline, a maximum percentage most landlords can raise rent without applying to the Board. The figure changes annually, so always check the current year's guideline before you set the new rent.

Units the guideline doesn't cap

Some units are exempt from the guideline, most notably those in buildings first occupied for residential use on or after November 15, 2018. For those, there's no percentage cap, but you still must use the N1, give 90 days notice, and respect the once-a-year rule.

Above-guideline increases

If a guideline-capped unit needs a larger increase, for example after major capital work or a big jump in property taxes, you can apply to the LTB for an Above-Guideline Increase (AGI). That's a separate application, not something you do with the N1 alone.

Serving the N1

Fill out the N1 with the new rent and the date it takes effect, then give it to the tenant at least 90 days before that date, using an approved method. Keep a copy and a record of how you served it. If the notice is late or the amount is wrong, the increase may not be valid.

Handle rent increases in Keystead

Keystead generates the N1, tracks each unit's last increase and the 12-month window, and applies the new rent automatically on its effective date, so the right amount is billed from the right month without you re-doing the math.

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This guide is general information, not legal advice, and the guideline and rules change. Confirm the current figure and requirements with the Landlord and Tenant Board or a licensed paralegal before serving a notice.

More guides: N4 for non-payment · Ontario standard lease · All landlord guides