Raising rent in Ontario isn't as simple as sending a text message or adding a line to next month's invoice. Get the process wrong — wrong form, wrong notice period, wrong timing — and the rent increase is void. Your tenant can keep paying the old amount, and you'll have to start over from scratch.
This guide walks through the complete process for how to increase rent in Ontario: when you're allowed to do it, by how much, what form to use, how to serve it properly, and what happens if something goes wrong. Whether you're raising rent for the first time or doing it for the tenth, this is the process you need to follow every single time.
Who the Rent Increase Rules Actually Apply To
Before anything else, you need to know whether your unit is subject to Ontario's rent control rules.
Under the Residential Tenancies Act, rent increases are regulated for most residential rental units in Ontario. But there's a significant exception: units first occupied for residential purposes after November 15, 2018 are exempt from rent increase guidelines. This includes newly built condos, new basement suites, and new additions to existing buildings — as long as the unit was not previously used as a rental before that date.
If your unit is exempt, you can still only raise rent once every 12 months, and you still need to give 90 days' written notice. But you're not bound by the annual guideline percentage — you can raise rent by any amount you and your tenant agree to (or that the market will support).
If your unit was occupied before November 15, 2018, the guideline cap applies. For 2026, Ontario has set the rent increase guideline at 2.0%. This is the maximum you can increase rent without applying for above-guideline approval.
You can always check the current year's guideline on the Ontario residential rent increases page, which is updated each year by the province.
The 12-Month Rule: When You Can Raise Rent
Regardless of whether your unit is rent-controlled or exempt, you can only raise rent once every 12 months.
The 12 months are counted from:
- The date of the last rent increase, or
- The date the tenant first moved in, if there has been no previous increase
This means if a tenant moved in on March 1, 2025, the earliest their rent can increase is March 1, 2026 — and only if they received proper notice at least 90 days before that date (so by December 1, 2025 at the latest).
A common mistake landlords make: they assume the 12 months runs from when they send the notice. It doesn't. The 12 months runs from when the last increase (or move-in) took place. The notice is a separate obligation on top of that.
The 90-Day Written Notice Requirement
This is where most landlords go wrong. You must give your tenant at least 90 days' written notice before a rent increase takes effect. Not 60 days. Not 3 months (which could be 89 days in February). Ninety clear days.
The notice must be in writing. A verbal conversation doesn't count. An email might not be sufficient unless you have clear proof of delivery and your tenant's acknowledgment. The safest approach — and the one that will hold up if the tenant disputes it — is to use the official LTB form.
The form you need is Form N1: Notice of Rent Increase, available from Tribunals Ontario. Using this form is not technically mandatory under the RTA, but it's strongly recommended because it contains all the required information in the right format. If you write your own notice and leave out a required element, the notice may be invalid.
How to Fill Out the N1 Form
The N1 is straightforward. Here's what it asks for:
- The tenant's name and address — make sure this matches your lease exactly
- Your name and address as the landlord
- The current rent amount — the amount the tenant pays now
- The new rent amount — the amount you're proposing after the increase
- The date the new rent takes effect — this must be at least 90 days from the date you serve the notice, and must fall on the first day of a rental period (typically the first of the month)
- The percentage increase — calculated from current to new rent
The N1 does not require you to justify the increase, as long as it's within the guideline. You simply state the facts. If you're applying for an above-guideline increase, that's a different process entirely — covered in detail in our above-guideline rent increase guide.
How to Serve the N1 Properly
Filling out the form correctly is only half the job. You also need to serve it in a way that the LTB will recognize as valid.
Acceptable methods of service under the RTA include:
- Hand delivery to the tenant directly
- Leaving it in the mailbox at the rental unit
- Sending by mail — but if you mail it, you must add 5 additional days to the 90-day notice period (so 95 days total from mailing date)
- Email — only if the tenant has agreed in writing to receive documents by email
Do not rely on slipping a note under the door or leaving it on a counter inside the unit during an inspection. These methods are not defined as valid service under the RTA and could be challenged.
Once you've served the notice, keep a copy. Write down the date you served it and how you delivered it. If the tenant later disputes the increase and you end up at the LTB, you'll need to show proof that proper notice was given. This is the kind of documentation our landlord record keeping guide covers in full — keep a paper trail on every formal step you take.
Calculating the Increase Correctly
For rent-controlled units, the math is simple: multiply the current rent by the guideline percentage and add it to the current rent.
Example:
- Current rent: $1,800/month
- 2026 guideline: 2.0%
- Maximum increase: $36/month
- New maximum rent: $1,836/month
You don't have to raise rent by the full guideline amount. You can raise it by less, or even skip an increase entirely in a given year. But you cannot roll over unused guideline amounts to future years — if you skip 2025, you don't get to raise rent by 4% in 2026. Each year's guideline is independent.
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For exempt units, there's no cap on the percentage, but the 12-month rule and 90-day notice requirement still apply in full.
What Happens if the Tenant Disagrees
A tenant who believes a rent increase is improper — wrong form, insufficient notice, or above the guideline for a rent-controlled unit — can file a T1 application with the Landlord and Tenant Board. The LTB can order a rent rebate if the increase is found to be invalid.
Here's the important point: a tenant does not have to pay an increase they believe is invalid. They can continue paying the old amount and file at the LTB. If the increase was improper, they're within their rights to do so.
This is why following the process exactly — right form, right notice period, right service method — is not optional. If you cut corners and your tenant challenges it, you'll lose time, potentially lose the increase for that year, and have to start the 90-day clock over from scratch.
If a tenant simply refuses to pay a valid, properly-served rent increase — that's a different situation. After the effective date, the increased amount is the legal rent. Non-payment of the increase is treated the same as any rent arrears. Our guide on late rent payments and the N4 notice process covers what to do next if a tenant stops paying correctly.
Above-Guideline Increases: When the Cap Isn't Enough
If you've had major capital expenditures — a new roof, HVAC system replacement, or significant energy efficiency upgrades — you may be eligible to apply to the LTB for an above-guideline rent increase. This is called an AGI application.
AGIs are not automatic. You need to file an application, provide documentation of the costs, and attend a hearing. The LTB reviews the application and decides whether to approve an increase above the guideline, and by how much.
AGIs can also be applied for if your municipal taxes have increased significantly or if operating costs have jumped in ways outside your control. But the process is involved and the approval is not guaranteed.
A few key things to know about AGIs:
- You can apply for an AGI for past capital expenditures — there are time limits, but you don't have to wait until the work is done
- The LTB can approve a phased increase spread over multiple years
- Even if approved, the N1 notice process still applies — you can't skip the 90-day notice step
For a detailed breakdown of how the AGI process works, see our post on above-guideline rent increases in Ontario.
Common Mistakes That Void a Rent Increase
These are the errors that show up repeatedly at the LTB:
1. Starting the 90-day count from the wrong date. The 90 days must be before the effective date of the increase — not before you intend to start collecting it. If you calculate wrong and fall one day short, the notice is invalid.
2. Raising rent before 12 months have passed. Even with perfect notice, you cannot raise rent more than once every 12 months. The LTB will void any increase that violates this rule.
3. Using an outdated version of the N1 form. The LTB updates its forms periodically. Always download the N1 fresh from the Tribunals Ontario website rather than reusing an old copy.
4. Increasing above the guideline on a rent-controlled unit without an AGI. Any increase beyond the guideline is a void increase for a rent-controlled unit. The tenant is under no obligation to pay the excess.
5. Not keeping proof of service. If a tenant claims they never received the notice, and you have no proof of how and when you served it, the LTB will side with the tenant.
6. Trying to raise rent mid-lease on a fixed-term agreement. You cannot raise rent during a fixed-term lease, even with proper notice, unless the effective date falls after the lease end date. The increase must take effect at or after the start of a new rental period.
Rent Increases After a Tenant Renews or Goes Month-to-Month
When a fixed-term lease ends and converts to a month-to-month tenancy, the rent increase rules don't reset. The 12-month clock keeps running from the last increase or move-in date — not from the lease renewal date.
This is a common source of confusion when landlords try to raise rent at renewal. If fewer than 12 months have passed since the last increase (or since the tenant moved in), you cannot raise rent at renewal — even if you're offering a new fixed-term lease. You must wait until the 12 months are up and serve a proper N1.
For a full breakdown of what happens when a lease expires and what your options are, see our lease renewal guide for Ontario landlords.
Step-by-Step Summary: How to Increase Rent in Ontario
- Confirm eligibility. Check whether 12 months have passed since move-in or last increase.
- Confirm your unit's status. Is it subject to the rent increase guideline (pre-November 15, 2018 first occupancy) or exempt?
- Calculate the new rent. Stay at or below the guideline for rent-controlled units, or set the new amount for exempt units.
- Download a current N1 form from Tribunals Ontario.
- Fill it out completely — current rent, new rent, percentage, and effective date.
- Confirm the effective date. It must be at least 90 days from the date of service (add 5 days if mailing), and must fall on the first day of a rental period.
- Serve the notice by an accepted method and record the date and method of service.
- File a copy with your tenancy records.
- Begin collecting the new rent on the effective date.
Key Takeaways
- You can only raise rent once every 12 months — the clock runs from move-in or last increase, not from notice date
- You must give at least 90 days' written notice before the increase takes effect
- Use the N1 form from Tribunals Ontario — fill it out fresh each time
- For most units occupied before November 15, 2018, increases are capped at the annual guideline (2.0% for 2026)
- Units first occupied after November 15, 2018 are guideline-exempt but still subject to the 12-month and 90-day rules
- Keep proof of service — date, method, and a copy of the form
Following this process correctly protects you from tenant applications, LTB hearings, and forced rebates. Done right, a rent increase is a routine administrative step. Done wrong, it's a dispute that can tie up your rental for months.
Prospera Properties manages rental properties in London, St. Thomas, and Strathroy, Ontario. Rent increases, N1 notices, LTB compliance — we handle the full process for our landlord clients so nothing falls through the cracks. If you'd rather not track guideline percentages and 90-day deadlines yourself, get in touch with our team to talk about what property management looks like for your portfolio.