ontario rent increase

How to: Ontario Rent Increase (N1/N2 Forms)

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How and when do you notify your tenant of a rental increase? How much are you allowed to increase the rent in Ontario? These are common questions Ontario landlords ask us, and we’re more than happy to share our knowledge.

The Ontario Rent Increase guideline (how much can I increase the rent by?)

The Ministry of Housing publishes a guideline every year and sets the maximum Ontario rent increase amount. You can find out the amount by clicking here.

This Ontario Rent Increase guideline does not apply to you if:

  • Your property was built or occupied after July 17, 1998
  • Your property was not used for residential occupation before November 1, 1991. 
  • Your property has not been previously rented since July 29, 1975

If the rental increase guideline applies to your building, you may apply to the Landlord Tenant Board (LTB) to approve a rental increase above the guideline if:

  • Your costs (such as taxes or utilities) have increased in a substantial way
  • You’ve done extensive repair or upgrades to your property

You can find out more about applying for rental increases above the guideline by clicking here.

When to Notify Your Tenant of a Rental Increase

According to the Landlord Tenant Board, a landlord must notify the tenant at least 90 days prior to the rent increase taking into effect. In Ontario, you may only increase the rent every 12 months.

In the notice to your tenant, you must notify how much the rental amount will be, and when the new rental amount will take effect. It is recommended that you use either an N1 Form or N2 Form from the Landlord Tenant Board (LTB). We’ll explain which one to use and when below.

One thing to keep in mind, if your tenants are paying rent through pre-authorized debit, they will likely have to resign a new preauthorized debit form from you acknowledging the new rental amount.

N1 and N2 Forms

If the rental guideline above applies to your property (i.e. older buildings)

You will have to abide by the Ontario Rent Increase amount set by the Ministry of Housing each year and provide an N1 form to your tenant at least 90 days prior to the rental increase taking effect.

If the rental guideline above does not apply to your building (i.e. newer buildings)

You do not have to abide by theOntario Rent Increase amount set by the Ministry of Housing, but you must provide an N2 form to your tenant at least 90 days prior to the rental increase taking effect.

For both forms, you must serve them to your tenants. This can be done by slipping the notices under your tenant’s door, in their mailbox, handing it to an adult in their unit, fax, or xpresspost. You cannot email an N1 or N2 form to your tenant!

Is there a way to have this done automatically?

We’re glad you asked. Our software (yuhu) will automatically fill out the N1/N2 forms for you. All you have to do is click a button, digitally sign it, and hand it to your tenant. We’ll autofill all of the information for you, and send the tenant a digital copy (and request their signature) so you get that extra bit of assurance.


Feel free to email with any questions at [email protected].

If you are looking for an easy way to manage your rental properties online, visit us at www.yuhu.io. We make lease generation, online marketing, payment collection, and managing your rental units as easy as clicking a button!





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