Ontario Rent Increase Rules 2026: Amounts, Notice & N1 Form

Most Ontario landlords who lose a rent increase don't lose it because the amount was wrong. They lose it because they served the N1 four days late, used the wrong form, or forgot that 90 days means 90 days — not "about three months." The Residential Tenancies Act is unforgiving on procedure: get the paperwork wrong and the increase is void, full stop.

Here's the complete, practical breakdown — guideline amounts, notice rules, the N1 form, above-guideline increases, and the mistakes that invalidate everything.

What Is the 2026 Ontario Rent Increase Guideline?

For most residential tenants, Ontario caps annual rent increases at the Rent Increase Guideline (RIG) — a percentage set each year by the provincial government, tied to the Ontario Consumer Price Index.

The 2026 guideline is 2.5%. Always verify the current figure directly at the Ontario rent increase guideline page — it changes every year, and applying last year's number to a rent-controlled unit creates a recoverable overpayment problem.

You are not required to increase rent each year. But if you do, you cannot exceed the guideline for covered units without LTB approval through an Above-Guideline Increase application.

Which Ontario Rental Units Are Subject to Rent Control?

This is where most landlords get confused — and where the stakes are highest.

Rent control applies to units first occupied for residential purposes before November 15, 2018. The 2.5% guideline cap is mandatory for these units.

Rent control does NOT apply to:

• Units first occupied for residential purposes on or after November 15, 2018
• New purpose-built rental buildings completed after that date

If your unit falls into the exempt category, you can raise rent by any amount — but you still must give 90 days' written notice using the N1 form, and you still must wait 12 months between increases. The guideline cap is gone; the procedural requirements are not.

In practice, large increases on newer units often trigger tenant turnover. A vacancy in a London or St. Thomas rental can cost $2,000–$4,000+ in lost rent and re-leasing costs — often more than the increase would have generated in a year.

If you're unsure when your unit was first occupied, the building permit date or first occupancy permit establishes this. For more on how rent control interacts with lease renewals, see our lease renewal guide for Ontario landlords.

The 12-Month Rule: How Long You Must Wait Between Increases

Regardless of rent control status, Ontario law requires at least 12 months between rent increases. You cannot raise rent twice in one year — the second increase is automatically void, and any overage collected must be refunded.

The 12-month clock starts from:

• The date the tenancy began, OR
• The date of the last rent increase — whichever is more recent

Example: Tenant moved in July 1, 2024. You raised rent to $1,850 on July 1, 2025. You cannot raise rent again until July 1, 2026 at the earliest — and you still need to serve a valid N1 at least 90 days before that date.

The 90-Day Written Notice Requirement: What the N1 Form Must Include

Every rent increase — regardless of rent control status — requires at least 90 days' written notice served on the N1 form before it takes effect.

The N1 form must state:

• The new rent amount in dollars (not just the percentage increase)
• The exact date the increase takes effect
• The current rent amount

An email, a letter, or a text message is not a substitute for the N1. If a tenant challenges a rent increase at the LTB and you used anything other than the official form, the adjudicator will likely void the increase outright. Download the current N1 directly from the Landlord and Tenant Board.

Approved Methods for Serving the N1

The notice clock does not start until the N1 is properly served. Approved service methods under the RTA are:

• In person to the tenant
• In the tenant's mailbox at the rental unit
• Under the door of the rental unit
• By courier

Email is only valid if the tenant has previously agreed to email service in writing. Verbal notice, text messages, and social media messages do not count. The 90-day clock starts the day after service — not the day you send it.

For a broader overview of how the LTB handles disputes when paperwork is challenged, see our Landlord and Tenant Board guide for Ontario landlords.

Step-by-Step: How to Calculate and Time a Rent Increase

Here's a worked example using the 2026 guideline.

Scenario: Tenant pays $1,800/month. Unit was first occupied in 2015 (rent-controlled). You want the increase to take effect August 1, 2026.

Step 1 — Calculate the new rent: $1,800 × 1.025 = $1,845/month

Step 2 — Count back 90 days from August 1: 90 days before August 1 = May 3, 2026

Step 3 — Build in buffer: Serve the N1 on or before April 23, 2026 (10-day buffer). If you miss May 3 by even one day, your earliest valid effective date shifts to September 1, and you've lost a month of income.

Step 4 — Confirm the 12-month gap: Verify that August 1, 2026 is at least 12 months after the tenancy start date or last increase.

Step 5 — Serve and document: Serve by an approved method. Write down the date, time, and method of service. Keep a copy of the signed N1.

Above-Guideline Increases (AGIs): When and How to Apply

For rent-controlled units, landlords can apply to the LTB for an Above-Guideline Increase (AGI) in three specific circumstances:

1. Extraordinary increases in operating costs — significant unexpected jumps in property taxes, utilities, or security services
2. Capital expenditures — major repairs or improvements that extend the life or improve the quality of the building (e.g., roof replacement, window replacement, boiler replacement, elevator modernization)
3. Added security services

The process involves filing an L5 application with the LTB, submitting invoices and financial documentation, and attending a hearing — often with tenant participation. Tenants have the right to dispute an AGI application, which adds time and complexity.

Realistic timelines: 12–18 months from filing to resolution is common. AGIs are rarely granted in full — they're often prorated or phased in over two or three years. Routine maintenance and minor repairs do not qualify.

If capital expenditures are driving you toward an AGI, get professional advice before filing. An improperly documented application will be dismissed, and you'll have lost 18 months. See our detailed breakdown of the above-guideline rent increase process in Ontario.

What Happens to Rent When a Tenant Moves Out?

When a tenant vacates and a new tenancy begins, you can set rent at any amount — regardless of what the previous tenant paid and regardless of the rent control rules that applied to the prior tenancy.

This is the mechanism by which landlords in older, rent-controlled buildings gradually realign rents with market rates. Once the new tenancy starts, that agreed-upon rent becomes the base, and the annual rules apply going forward.

This is also why tenant screening matters enormously in rent-controlled units. A bad tenant who stays for years in a below-market unit creates compounding financial problems that are difficult to unwind.

6 Common Mistakes That Void an Ontario Rent Increase

1. Serving fewer than 90 days' notice — the increase simply does not apply for the short-noticed period
2. Using an informal letter instead of the N1 form — unenforceable if challenged at the LTB
3. Stating the percentage instead of the dollar amount — the N1 requires the new rent in dollars
4. Exceeding the guideline on a rent-controlled unit — creates a recoverable overpayment; tenant can file a T1 application
5. Raising rent twice within 12 months — the second increase is void and collected amounts must be refunded
6. Serving notice by an unapproved method — email without written consent doesn't start the 90-day clock

If a tenant files a T1 application at the LTB and your paperwork has any of these errors, the adjudicator will void the increase and order repayment of any overage collected — plus potentially administrative fees.

How to Stay Organized: A Simple System for Landlords

• Set a calendar reminder 120 days before each tenancy anniversary. This gives you time to decide whether to increase, calculate the new amount, fill out the N1, and serve it with buffer to spare.
• Keep a copy of every N1 you serve, along with a written note of the date, time, and method of service.
• Verify the guideline every January. It changes annually, and using last year's number on a rent-controlled unit is an easy mistake that creates LTB exposure.
• Record the new rent amount in dollars on the N1 — do the math in advance and double-check it.
• Maintain a spreadsheet with each unit's tenancy start date, last increase date, last rent amount, and next eligible increase date. For landlords with even three or four units in London or St. Thomas, this is the difference between catching your window and missing it.

For a broader look at the record-keeping systems that protect landlords at the LTB, see our guide to landlord record keeping in Ontario.

Managing Rent Increases Across Multiple Units

If you own several properties in London, St. Thomas, or Strathroy, tracking 90-day windows across multiple tenancies quickly becomes a real operational burden. Each unit has its own anniversary date, its own last-increase date, and its own rent-control status. Miss one window and you're waiting another 12 months.

It's a small administrative task — until it isn't, and you've left $45 a month on the table for a year because the N1 was served three days late.

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Frequently Asked Questions

Q: How much can a landlord raise rent in Ontario in 2026? A: For units subject to rent control (first occupied before November 15, 2018), the maximum is the annual Rent Increase Guideline — 2.5% in 2026. Units first occupied on or after November 15, 2018 are exempt from the guideline cap and can be raised by any amount. The 90-day notice requirement and 12-month rule still apply to exempt units.

Q: What is the N1 form and where do I get it? A: The N1 is the official Notice of Rent Increase form issued by the Landlord and Tenant Board. It's the only legally recognized document for serving a rent increase notice in Ontario. Download it directly from the LTB forms page. Using a personal letter or email instead of the N1 leaves your increase vulnerable to challenge.

Q: What happens if a landlord gives less than 90 days' notice for a rent increase? A: The increase is unenforceable for the short-noticed period. The tenant is not required to pay the higher rent until 90 days have passed from a properly served N1. If you collected the increase during the short-noticed window, the overage is recoverable by the tenant through a T1 application. The safest practice is to serve the N1 at least 100–110 days before the intended effective date.

Q: Can a landlord raise rent above the guideline for a rent-controlled unit? A: Only with LTB approval through an Above-Guideline Increase (AGI) application (L5 form). AGIs are available for significant capital expenditures, extraordinary increases in municipal taxes or utilities, and added security services. The process typically takes 12–18 months, involves tenant participation, and increases are often phased in over two or three years — not granted in full upfront.

Q: Can a landlord raise rent twice in one year in Ontario? A: No. At least 12 months must pass between rent increases, measured from the tenancy start date or the last increase — whichever is more recent. A second increase within 12 months is automatically void. Any amounts collected above the previous lawful rent during that period must be refunded to the tenant.

Q: Does the 90-day notice rule apply to units that aren't rent-controlled? A: Yes. The 90-day written notice requirement and the 12-month rule apply to all residential tenancies in Ontario, regardless of rent control status. The only thing that changes for exempt units is that there is no cap on the amount of the increase.

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This is one of the day-to-day management tasks where working with Prospera Properties pays for itself. We track renewal and increase timelines for every managed unit across London, St. Thomas, and Strathroy — preparing and serving N1 notices on time, calculating amounts correctly, and maintaining the documentation you'd need if an increase were ever challenged at the LTB. It's a small thing until you miss the window and have to wait another year.

For questions about your specific situation, get in touch with us — we're happy to help you think through the timing.