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 (2.5% for 2025-2026) |
| Effective Date | First day of a rental period |
How to Generate an N1
Step 1: Go to Notices
- Click Notices in the sidebar
- Click Generate Notice
- Select the lease you want to increase rent for
- Click N1 - Rent Increase
Step 2: Enter New Rent Amount
- Current rent is pre-filled
- Enter the proposed new rent amount
- System calculates the percentage increase
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 |
|---|---|
| 2026 | 2.5% |
| 2025 | 2.5% |
| 2024 | 2.5% |
Example Calculation
Current rent: $2,000/month Guideline: 2.5% Maximum increase: $2,000 x 2.5% = $50 New rent: $2,050/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.