How to raise the rent in Ontario: N1 notice, timing, and the 2026 guideline

Ontario's annual rent increase process has more procedural requirements than most landlords realize, and the consequences of getting any one of them wrong are expensive. The increase doesn't take effect, the tenant can challenge it, or you have to start the 90-day clock again from scratch. This guide covers every step — from confirming whether your unit is covered, to serving the N1, to what happens if you want to go above the guideline.

The 2026 rent increase guideline

The Ontario government sets a maximum rent increase percentage each year based on the Ontario Consumer Price Index. For 2026, the guideline is 2.1%. This is the maximum increase a landlord can apply to most rent-controlled units without Landlord and Tenant Board approval. You can increase by less than 2.1%, or choose not to increase at all — you are not required to raise rent every year.

Does your unit fall under rent control?

The 2.1% guideline applies to most residential units that were first occupied for residential purposes on or before November 15, 2018. Units first occupied after that date are exempt from the guideline — meaning no cap applies. Even so, landlords of exempt units must still use the correct form (the N2 for exempt units, not the N1) and must still give proper notice.

• Unit first occupied on or before November 15, 2018: use the N1, maximum 2.1%, guideline rules apply.
• Unit first occupied after November 15, 2018: use the N2, no maximum percentage, but notice requirements still apply.
• Social housing and certain institutional residences have separate rules and may not fall under this guideline at all.

The 12-month rule

Rent can only increase once every 12 months. That 12-month window runs from the tenant's move-in date or the last increase date, whichever is later. If you increased rent on March 1, 2025, the earliest your next increase can take effect is March 1, 2026. This applies regardless of whether you owned the unit throughout, so landlords who recently purchased should check when the previous owner last increased the rent before serving any notice.

Serving the N1: what has to go right

The N1 is the official LTB form for a rent increase notice. It must be served at least 90 days before the increase takes effect. That 90-day window is precise — serving a notice 89 days before the increase date makes it invalid. Verbal notices, emails (unless the tenant has previously agreed in writing to receive notices by email), or informal letters are not acceptable substitutes for the form.

• Use the current version of Form N1 from the LTB website — the form is updated periodically.
• Enter the tenant's full legal name(s) exactly as they appear in the lease.
• Enter the current lawful rent accurately — if the current figure is wrong, the notice can be challenged.
• Calculate the new rent precisely: 2.1% of the current lawful rent, rounded to the nearest cent. Do not round generously.
• Confirm the effective date aligns with the first day of a rental period (usually the first of the month for monthly tenants).

Acceptable service methods

You can serve the N1 by hand delivery, regular mail, registered mail, or courier. Email is only acceptable if the tenant has given written consent to receive notices electronically — a general email address on the lease is not sufficient unless it specifically includes consent to service by email. If you use regular mail, add two days to the service date to account for delivery time when calculating your 90-day window.

Proof of service

Keep evidence of service — a completed Certificate of Service, a delivery confirmation, or a time-stamped photograph of hand delivery. If the tenant later disputes whether they received the notice, this is your primary defence.

Above-guideline increases (AGI)

If you want to increase rent beyond 2.1% for a rent-controlled unit, you must apply to the Landlord and Tenant Board for an above-guideline increase (AGI). Qualifying reasons include extraordinary capital expenditures (eligible capital work like roof replacement, plumbing, or structural repairs), significant increases in municipal taxes, or operating costs related to security services. AGI applications require detailed documentation and are subject to LTB approval — the process typically takes several months.

Common mistakes that invalidate an N1

• Calculating the new rent using the wrong base (e.g., using discounted or promotional rent instead of the lawful rent).
• Using the N1 for a post-November 2018 unit that should use the N2.
• Serving notice fewer than 90 days before the increase date.
• Not accounting for mail delivery time when calculating the 90-day window.
• Tenant names on the N1 not matching the lease exactly.
• Setting an effective date in the middle of a rental period (for a monthly tenancy, it must be the first of the month).

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