LTB rules engine

OntarioLandlord includes a built-in LTB Rules Engine that validates your actions against Ontario's Residential Tenancies Act (RTA). This helps prevent invalid notices and ensures compliance.

What gets validated

Notice generation

Before any notice is generated, we validate:

Notice	Validations
N1	90-day notice period, 12-month gap, guideline percentage, effective date
N4	7-day notice period (flat, from 2026-09-21), arrears exist — no rental-period alignment required (RTA s.59(2))
N5	20-day notice period (first), 14-day (second), proper grounds
N6	20-day notice period for illegal act/business/misrepresented income (10 days only for drug offenses, not currently a separate wizard option)
N7	Immediate to 10-day period, safety issue documented
N12	60-day notice period, termination on period end, compensation noted
N13	120-day notice period, permit/plan documented

Rent increase validation

For rent increases (N1), we check:

• Current rent amount
• Date of last increase
• Months since last increase (must be 12+)
• Proposed increase percentage
• Current guideline percentage
• Earliest valid effective date

Arrears calculation

For arrears-related actions (N4, evidence), we calculate:

• Rent owed per period
• Payments received
• Running balance
• Total arrears amount

How validation works

1. Real-time checking

As you fill in notice details, validation runs automatically:

✓ Notice period: 7 days minimum → PASS (21 days provided)
✓ Arrears amount: Must be > $0 → PASS ($2,500 arrears)
✓ Termination date: On or after the minimum → PASS (Jan 29, 2026) — no period-end rounding required for N4

2. Blocking invalid actions

If validation fails, you cannot generate the notice:

✗ 12-month rule: Last increase was 10 months ago
  → You must wait 2 more months before increasing rent

3. Warnings (non-blocking)

Some issues generate warnings but don't block:

⚠ Termination date is 45 days away (14 minimum)
  → This is valid but gives tenant extra time

Rules database

Our rules engine uses a database of Ontario RTA rules:

Rule	Value	Source
N1 notice period	90 days	RTA s.116
N4 notice period	7 days (14 before 2026-09-21)	RTA s.59(1)
Rent increase frequency	12 months	RTA s.119
2027 guideline	1.9%	Ontario Gazette
2026 guideline	2.1%	Ontario Gazette
LMR interest rate	Varies (current rate shown in-app)	Ontario Gazette

The guideline applied to an N1 is resolved by the year the increase takes effect, not the year the notice is generated — see Rent increase rules for details.

Keeping rules updated

• Rules are updated when Ontario regulations change
• Guideline percentages updated annually
• Users notified of changes affecting their leases
• LMR (Last Month's Rent) interest rates are fetched from a live database and refreshed daily — no manual updates required
• The guideline cache is refreshed automatically by a scheduled job; operators can trigger a manual refresh if needed

Validation examples

Valid N4 scenario

Current date: January 15, 2026
Rent due: 1st of month
Arrears: $2,500 (Dec + Jan)
Termination date: January 31, 2026

Validations:
✓ Arrears exist: $2,500 > $0
✓ 7 days notice: Jan 31 - Jan 15 = 16 days
✓ Period end: Jan 31 is end of month
→ VALID - N4 can be generated

Invalid N1 scenario

Current date: January 15, 2026
Last increase: June 1, 2025
Proposed increase: 5%
Guideline: 2.1%

Validations:
✗ 12-month gap: Only 7 months since last increase
✗ Guideline: 5% > 2.1% guideline
→ INVALID - Cannot generate N1

Benefits

Benefit	Description
Prevents Rejections	LTB won't reject properly validated notices
Saves Time	Catch errors before serving
Peace of Mind	Know your notices are compliant
Documentation	Validation results saved for records

Limitations

Not Legal Advice

The rules engine validates technical compliance but:

• Cannot account for all case-specific circumstances
• Doesn't guarantee LTB outcomes
• Doesn't replace professional legal advice
• May not cover unusual or complex situations

For complex situations, consult an Ontario paralegal or lawyer.