Ontario Rent Increase Notice (Rules, Requirements & Legal Guidelines) - Legal Templates Canada

Ontario Rent Increase Notice is a legal document landlords must use when increasing rent. In Ontario, you cannot just raise rent anytime—you must follow strict rules under the Residential Tenancies Act.

If you’re a landlord or property manager, this article will help you stay compliant. If you’re a tenant, it will help you understand your rights before accepting any rent increase.

A rent increase notice tells a tenant that their rent will go up on a future date. Under Ontario law, landlords must follow clear rules before doing this. I’ve seen Ontario landlords lose weeks of time and money because they used the wrong notice form or increased rent before they were legally allowed to. Most people dealing with rent increases are already stressed, and even small mistakes under Ontario’s rules can quickly turn into disputes at the Landlord and Tenant Board.

This article includes a free template, legal rules, and step-by-step instructions so you can do it correctly.

Table of Contents

Free Ontario Rent Increase Notice Template

You can use this sample as a basic draft. It is helpful for understanding what information is required.

Get PDF | WORD

Tip: Use this template to understand the structure. For legal compliance, always use official Ontario forms when required.

Ontario Rent Increase Notice Legal Requirements and Compliance Rules

Topic / Issue	Ontario Legal Rule	Governing Statute
Governing Legislation	Residential rent increase rules are governed by provincial law under the Residential Tenancies Act, 2006.	Residential Tenancies Act, 2006
Recent Amendments	Bill 60, Fighting Delays, Building Faster Act, 2025 amended parts of the RTA, but the 90-day notice and 12-month frequency rules remain unchanged.	Residential Tenancies Act, 2006
Who Can Legally Sign	The landlord or the landlord’s authorized agent/representative may sign the notice.	RTA, s. 116
Witness Requirements	No statutory witness requirement applies.	N/A
Notarization / Commissioner	No notarization or commissioner requirement applies.	N/A
Age & Mental Capacity	No statutory rule is specifically provided.	N/A
Notice Deadline	Landlords must give at least 90 days’ notice before the increase takes effect.	RTA, s. 116(1)
Frequency Limit	Rent can only be increased 12 months after the last increase or the start of the tenancy.	RTA, s. 119(1)
Effective Date Rule	The increase must take effect on the first day of a rental period.	RTA, s. 116(2)
Mandatory Forms	Ontario requires approved LTB forms such as Form N1, N2, or N3.	RTA, s. 116(3)
Required Disclosure	The notice must include the 2026 rent increase guideline of 2.1% for rent-controlled units.	Landlord and Tenant Board Forms
Filing Requirement	Standard guideline rent increases do not need to be filed with the government.	Landlord and Tenant Board (Tribunals Ontario)
Above Guideline Increase (AGI)	Landlords seeking an AGI must file an L5 Application with the LTB.	Landlord and Tenant Board
Invalid Notice — Insufficient Notice	A notice with fewer than 90 clear days is void and unenforceable.	RTA, s. 116(1)
Invalid Notice — Wrong Form	Using a letter, text, or non-approved document makes the increase invalid.	RTA, s. 116(3)
Invalid Notice — 12-Month Violation	Increasing rent before 12 months have passed makes the notice legally ineffective.	RTA, s. 119(1)
Post-2018 Exemption	Units first occupied after November 15, 2018 are exempt from the annual guideline cap but still require 90 days’ notice using Form N2.	RTA, s. 6.1
Annual Guideline Cap	The statutory formula for the annual guideline is based on the Consumer Price Index (CPI) and capped at a maximum parameter of 2.5%. For the calendar year 2026, the Ministry has officially fixed the mandatory rent increase guideline at exactly 2.1% for all rent-controlled residential units.	RTA, s. 120(2); O. Reg. 516/06

Ontario has some very specific rent increase rules that many landlords accidentally overlook. One of the biggest surprises is that simply sending a text message, email, or homemade notice is not legally enough in most situations. Ontario law requires landlords to use official Landlord and Tenant Board forms like the N1 or N2. If the wrong form is used, the entire rent increase can become invalid even if the amount itself was correct.

Another important rule is the strict 90-day notice period combined with the 12-month waiting rule. A landlord cannot raise rent whenever they want, even during month-to-month tenancies. Timing mistakes can force landlords to restart the process from the beginning and delay rental income increases for months.

The post-2018 exemption is also unique in Ontario because some newer rental units are exempt from the annual rent increase guideline cap. However, landlords still must follow notice requirements carefully.

To make the process easier and avoid costly mistakes, download the free Ontario Rent Increase Notice template below.

What Is a Rent Increase Notice in Ontario?

A rent increase notice is a written notice from a landlord telling a tenant that rent will increase.

It is important to understand this:

The notice is not the increase itself
It simply informs the tenant about a future change
The increase only becomes valid after proper notice and timing

Under Ontario law:

Verbal notice is not allowed
Written notice is mandatory
It applies to most residential rental units

Ontario Rent Increase Rules You Must Follow

This is the most important part. If you break these rules, your rent increase can be invalid.

90-Day Notice Rule

Landlords must provide a minimum of 90 clear days written notice before the increase can take effect. Under the Legislation Act, 2006, ‘clear days’ means you must exclude both the day the notice is received by the tenant and the day the rent increase begins.

Furthermore, you must append mandatory administrative transmission buffers to your timeline: add 5 days if serving by regular mail, or 1 day if utilizing a courier service, to satisfy the LTB’s strict ‘deemed service’ regulations.

Once Per 12 Months Rule

You can only increase rent:

Once every 12 months, and
Only after the tenant has lived there for at least 12 months

Even if the tenant is on a month-to-month lease, this rule still applies.

Government Rent Increase Guideline

Ontario enforces a strict annual Rent Increase Guideline for all protected residential units. For any rent increase taking effect between January 1, 2026, and December 31, 2026, the maximum legal increase is exactly 2.1%.

Increasing rent by even a fraction of a percent above 2.1% without an approved LTB Order (Form L5) constitutes an administrative offense and renders the entire notice unenforceable.

Approved Above-Guideline Increases

In some cases, landlords can increase rent more than the guideline.

This is allowed only if:

You apply to the Landlord and Tenant Board
The increase is approved

Common reasons:

Major building repairs
Increased property taxes
Utility cost increases

Official Forms vs Custom Templates

This is where many landlords make mistakes.

Type	Purpose	Legal Status
Custom Template	Understanding / drafting	Not legally required
N1 / N2 Forms	Official notice	Required by law

Under Ontario law:

You MUST use official forms like N1 or N2 in most cases
A custom template alone is not enough

Risk of using wrong format:

Tenant can refuse to pay
Notice becomes invalid
You may need to restart the process

When Can a Landlord Increase Rent?

After Lease Completion

When a fixed-term lease ends:

It usually becomes month-to-month
Rent can be increased with proper notice

Month-to-Month Tenancies

Even in month-to-month:

90-day notice is still required
12-month rule still applies

New Tenants vs Existing Tenants

This is a key rule many people misunderstand.

Existing tenants: Rent increase rules apply
New tenants: No limit on rent

This means:

When a unit becomes vacant, landlords can set any new rent

Key Elements of a Valid Rent Increase Notice

A proper notice must include:

Tenant and Property Details

Full tenant names
Correct rental address

Current and New Rent Amount

Clearly show both amounts

Percentage Increase Calculation

Must match the guideline (unless approved otherwise)

Effective Date (90-day gap)

Must be at least 90 days ahead

Compliance Statement

Mention if it follows guideline or approved increase

How to Fill Out the Rent Increase Notice (Step-by-Step)

Step 1 – Check Guideline Percentage

Look up the current Ontario rent increase guideline for the year.

Step 2 – Calculate New Rent

Example:

Current rent = $1,000
Increase = 2.5%
New rent = $1,025

Step 3 – Set Correct Notice Period

Choose a date at least 90 days ahead.

Step 4 – Complete Tenant Details

Ensure:

Names are correct
Address is accurate

Mistakes here can invalidate the notice.

Step 5 – Deliver Notice Properly

This step is critical (explained below).

How to Deliver the Notice to Tenants

You must deliver the notice properly for it to be valid.

Accepted methods:

In person
By mail
Email (only if tenant agreed in writing)

Important:

Always keep proof of delivery
Take a photo or keep a receipt

Common Mistakes That Make a Rent Increase Invalid

Avoid these common errors:

Giving Less Than 90 Days Notice

This is the most common mistake.

Increasing Rent Too Soon

If 12 months have not passed → not allowed

Exceeding Guideline Without Approval

You must get approval first

Using Wrong Form or Missing Details

Incorrect format = invalid notice

Verbal Notice Only (Not Allowed)

Written notice is required under law

What Happens If a Rent Increase Is Illegal?

If the notice is not valid:

Tenant can refuse to pay increased rent
Tenant can file a complaint with the Landlord and Tenant Board
Landlord may face delays or penalties

Important:
Landlords are not allowed to pressure tenants into accepting illegal increases.

Real-Life Example

Legal Rent Increase

Rent: $1,200
Increase: 2.5%
Notice: Given 90 days in advance
Result: Valid increase

Invalid Rent Increase

Rent: $1,200 → $1,400
No approval
Only 30 days notice

Result: Tenant can legally refuse

Rent Increase vs Rent Review

Feature	Rent Increase	Rent Review
Purpose	Raise rent	Check fairness
Frequency	Once per year	Case-based
Approval	Not always	Often required
Legal Process	Structured	More complex

FAQs

Can a landlord increase rent every year?

Yes, a landlord can increase rent, but only once every 12 months. They must also give proper written notice before increasing it.

Can tenants refuse a rent increase?

Yes, tenants can refuse if the increase is not legal or does not follow Ontario rent rules. They can also challenge it through the proper authority.

What is the maximum rent increase in Ontario?

The maximum increase depends on the yearly guideline set by the government. For example, it is often around 2.5%, but it can change each year.

Do I need to sign a new lease after increase?

No, you do not need to sign a new lease. If the notice is valid, the rent increase will automatically apply to your current agreement.

Can rent be increased during a fixed lease?

Usually, rent cannot be increased during a fixed lease period. It can only be increased after the lease term ends or renews.