Understanding the N1 Form: A Landlord's Guide to Issuing a Notice of Rent Increase

Owning an investment property can be complex, especially with rising expenses like property taxes, insurance, interest rates, and utilities.  To combat these increasing costs, landlords can use the N1 form - Notice of Rent Increase. This form can be found on the Landlord and Tenant Board of Ontario website. Properly preparing and delivering this notice in accordance with Landlord and Tenant Board guidelines is crucial.

 Notice Period

The notice must be delivered to the tenant at least ninety days before the effective rent increase date. This should be documented on a Certificate of Service and stored safely in the event that the tenant refutes receiving or disagrees with the notice. It is imperative to keep all documents pertaining to the tenancy in a safe filing system.

Timing

The effective date of the new rent MUST be one year after the last N1 for existing tenants or after the current lease end date for new tenants.

 Delivery Methods

1. Hand it to your tenant or another adult at the unit.

2. Leave it in the tenant’s mailbox or usual mail delivery spot.

3. Slide it under the tenant’s door.

4. Send it by mail or courier.

5. Email IF this has been agreed in section 3 of the Ontario Standard Form Lease OR you and the tenant have a signed agreement.

To review all suitable delivery methods for notices, please review the Certificate of Service for detailed information.

Rent Increase Maximum

To find out the maximum allowable rent increase for the year visit: Ontario Rent Increase Guideline. For 2024, the guideline is 2.5%, based on the Ontario Consumer Price Index.  You may choose to increase the rent by less than this amount if preferred.

Exceptions to the Rent Increase Guideline

1.Units occupied for the first time after November 15, 2018, including new builds, additions, and many new basement apartments.

2. Community housing units.

3. Long-term care homes.

4. Commercial properties.

5. During tenant turnover.

If you require legal assistance, direction or form completion with Form N1 or any other landlord-related form, please contact us today to help.