N1 - Rent Increase Notice
The N1 notice is used to notify a tenant of a rent increase. Ontario has strict rules about when and how much you can increase rent.
When to use N1
Use an N1 when:
- At least 12 months have passed since the lease started or last increase
- You want to increase rent within the annual guideline
- You can provide at least 90 days notice
Key rules
| Rule | Requirement |
|---|---|
| Notice Period | Minimum 90 days |
| Frequency | Once every 12 months |
| Maximum Amount | Annual guideline for the year the increase takes effect (1.9% for 2027, 2.1% for 2026) |
| Effective Date | First day of a rental period |
How to generate an N1
OntarioLandlord uses a 3-step notice wizard:
Step 1: Select property and lease
- Navigate to Notices → Generate Notice (or use the dashboard quick link)
- Select the property and lease for the rent increase
Step 2: Choose notice type and dates
- Select N1 — Rent Increase
- Current rent is pre-filled
- The proposed new rent defaults to the guideline maximum for the year the notice's effective date falls in — you can enter a lower amount, but not higher
- System calculates the percentage increase as you adjust the amount or notice date
Step 3: Review validation
OntarioLandlord checks:
| Validation | What We Check |
|---|---|
| 12-month rule | At least 12 months since last increase |
| 90-day notice | Effective date is at least 90 days away |
| Guideline limit | Increase doesn't exceed annual guideline |
| Effective date | Falls on first day of rental period |
Step 4: Set effective date
The system calculates the earliest valid date. You can choose a later date if preferred.
Step 5: Generate PDF
Click Generate PDF to create the notice. It will be saved to your Notice History.
Annual rent guideline
| Year | Guideline |
|---|---|
| 2027 | 1.9% |
| 2026 | 2.1% |
| 2025 | 2.5% |
| 2024 | 2.5% |
The guideline that applies is determined by the year the increase takes effect, not the year the notice is generated or served. For example, a notice generated in late 2026 with a January 2027 effective date uses the 2027 guideline (1.9%), not 2026's 2.1%. If you change the notice date, OntarioLandlord re-resolves the applicable guideline and updates the default proposed rent automatically — as long as you haven't manually overridden the amount.
Example calculation
Current rent: $2,000/month Guideline: 1.9% (2027) Maximum increase: $2,000 x 1.9% = $38 New rent: $2,038/month
Exemptions
Some units are exempt from the rent guideline:
- Buildings first occupied after November 15, 2018
- Social housing (different rules)
- Commercial units (RTA doesn't apply)
If your unit is exempt, you can increase by any amount. OntarioLandlord validates timing but not the percentage for exempt units.
Above guideline increase (AGI)
To increase above the guideline, you must:
- Apply to the LTB for an AGI
- Justify with eligible costs (capital expenditures, taxes, utilities)
- Get LTB approval before serving the N1
OntarioLandlord tracks expenses that may qualify for AGI.
Common questions
What if I haven't increased rent in 3 years?
You can only make one increase per 12-month period. You cannot "catch up" with multiple increases.
Can I increase rent for a new tenant?
You can set any rent for a new tenant. Guidelines only apply to increases during an existing tenancy.
What if my tenant refuses the increase?
A properly served N1 doesn't require tenant agreement. The increase takes effect on the date specified (if valid).
Can I withdraw an N1?
Yes, you can choose not to enforce it, but there's no formal withdrawal process.
After generation
Once the N1 is generated:
- Preview the completed PDF
- E-sign the notice using the built-in e-signature integration
- Email the notice directly to the tenant
- Generate a Certificate of Service as proof of delivery
See E-signatures for the multi-party signing workflow.
Long names and addresses
The N1 header boxes hold the landlord and tenant name plus the rental unit address. If a name or address is long enough to wrap across multiple lines, the system automatically shrinks the font (down to a minimum of 6pt) to keep everything within the box boundaries without overlapping adjacent fields.
This means even lengthy multi-line addresses — such as a unit in a rural area with a long civic number and municipality — are always properly contained in the generated PDF without overlapping adjacent fields. No action is needed; the adjustment happens automatically at generation time.
At very small font sizes (near the 6pt minimum), text remains within bounds but may appear small on the printed form. If you consistently see very long names or addresses on N1s, consider using shorter abbreviations when entering tenant or property details.