AI Ontario Lease Renewal / Rent Increase Notice

Generate a complete Ontario lease renewal and/or rent increase notice using the prescribed form and rules under the Residential Tenancies Act, 2006 (RTA). Fixed-term leases automatically convert to month-to-month upon expiry. Provide current lease terms, proposed changes (if any), and effective date to produce a properly timed notice (typically Form N1 for rent increases), compliant 90-day notice period, rent guideline calculation, exemption analysis, proof of service, and signature block., -

RTA OVERVIEW, RENEWAL AND RENT INCREASE RULES

Under the *Residential Tenancies Act, 2006* (RTA) section 38, a fixed-term tenancy that is not renewed by agreement automatically becomes a month-to-month tenancy on the same terms at the end of the term. A landlord cannot require a tenant to sign a new fixed-term lease.

Rent may be increased only:

• Once every 12 months (measured from the date of the last increase or the date the tenant moved in, whichever is later)
• With at least 90 days' written notice using the approved form
• By no more than the annual rent increase guideline (unless the unit is exempt or an above-guideline increase is approved by the LTB)

Current guidelines (capped at 2.5% maximum):
- 2025: 2.5%
- 2026: 2.1%
- 2027: 1.9%

Units first occupied for residential purposes on or after 15 November 2018 are exempt from the guideline cap but remain subject to the 12-month rule and 90-day notice requirement.

Landlords may use Form N1 (Notice of Rent Increase) to notify of an increase. A separate written renewal offer or mutual agreement (N11 or other writing) may be used to document a new fixed term if both parties agree., -

RENT INCREASE ELIGIBILITY AND GUIDELINE CHECK

Before serving notice, confirm:

1. At least 12 months have passed since the last rent increase (or tenant move-in).

2. The proposed increase does not exceed the guideline for the calendar year in which it takes effect, unless the unit is exempt.

3. Proper 90-day notice will be given so the increase takes effect on the correct date (usually the first day of a rental period after the notice period).

Guideline Calculation Example Table

If the unit is exempt from the cap, use Form N2 (Notice of Rent Increase for Partially Exempt Unit) where appropriate and still provide 90 days' notice., -

FORM N1, NOTICE OF RENT INCREASE (PRESCRIBED)

Residential Tenancies Act, 2006, Notice of Rent Increase

DATE OF NOTICE: [[Date of Notice (DD Month YYYY)]]

TO (TENANT):
[[Tenant 1 Full Legal Name]]
[[Tenant 2 Full Legal Name (if joint)]]
And all other occupants

RENTAL UNIT:
[[Unit / Street Address]]
[[City]], Ontario [[Postal Code]]

LANDLORD / AUTHORIZED AGENT:
Name: [[Landlord or Property Management Company Full Name]]
Address for notices: [[Landlord Notice Address]]
[[City]], Ontario [[Postal Code]]
Phone: [[Landlord Phone]] Email: [[Landlord Email]], -

NOTICE OF RENT INCREASE

You are hereby given notice that the rent for the above rental unit will increase as follows:

Current rent: $[[Current Monthly Rent Amount]] per month

New rent: $[[New Monthly Rent Amount]] per month

Effective date of increase: [[Effective Date, must be at least 90 days after this notice is given and the first day of a rental period]]

Reason / authority: [[Guideline increase for year [[Year]] / Above-guideline increase per LTB order [[Order Number]] / Exempt unit (post-Nov 2018 occupancy), no guideline cap applies]]

The increase is the first increase in the 12-month period beginning [[Date of Last Increase or Move-in]].

This notice is given in accordance with section 116 of the RTA. The tenant is not required to sign a new lease. If the tenant remains after the fixed term (if any), the tenancy continues month-to-month on the new rent terms unless otherwise agreed in writing., -

IMPORTANT TENANT INFORMATION

• The tenant may apply to the LTB to dispute the increase if it appears to violate the 12-month rule, notice period, or guideline (where applicable).
• If the unit is exempt from the guideline, the tenant may still challenge whether proper notice was given.
• Payment of the increased rent does not waive the tenant's right to dispute.
• For questions, contact the Landlord and Tenant Board at 1-888-332-3234 or visit tribunalsontario.ca/ltb., -

*Signature of Landlord or Authorized Agent*

__________________________________________
[[Landlord or Agent Full Legal Name]]
[[Capacity]]
Date: [[Date Signed (DD Month YYYY)]], -

SAMPLE RENEWAL / CONTINUATION LANGUAGE (NO INCREASE OR MUTUAL AGREEMENT)

If no rent increase is proposed or the parties wish to document a renewal term:

This letter confirms that the fixed-term tenancy for the Premises ending [[Lease End Date]] will convert to a month-to-month tenancy on [[Conversion Date]] on the same terms unless the parties execute a new written agreement.

Alternatively, the parties may sign a new fixed-term agreement or Form N11 (Agreement to End the Tenancy) if mutually agreed to terminate on a specific date.

Proposed new fixed term (if agreed): [[New Term Length, e.g. 12 months]] beginning [[Start Date]] ending [[End Date]] at rent of $[[Rent Amount]].

Tenant may accept by signing below or providing written confirmation by [[Reply Deadline]]., -

PROOF OF SERVICE

I certify that this notice was served on [[Date of Service]] by:

1. Personal delivery to the tenant at the Premises

2. Leaving with an adult at the Premises and mailing a copy within five days

3. Registered mail to the tenant's address

4. Other method permitted by the RTA or LTB: [[Describe]]

Server name: [[Server Full Name]]

Signature: ______________________________ Date: [[Service Date]], -

ADDITIONAL RULES AND BEST PRACTICES

• Always wait the full 90 days; serving early is fine but the effective date must meet the minimum.
• Keep a copy of the notice, proof of service, and rent payment history.
• For above-guideline increases, file the appropriate application with the LTB and obtain an order before the increase takes effect in most cases.
• Landlords must not increase rent by more than permitted even if tenant agrees; excess amounts may be ordered repaid.
• Document all offers of renewal in writing., -

DISCLAIMER AND SOURCES

> ⚠️ Template example, not professional legal advice. Verify current guideline percentages, approved LTB forms (N1, N2), and RTA text before use. Rules and forms can change. Consult the LTB, a lawyer, or a licensed paralegal for your specific tenancy. Information current as of June 2026.

Primary sources:
- Residential Tenancies Act, 2006, S.O. 2006, c. 17, ss. 38, 116 and related
- ontario.ca/page/residential-rent-increases (guidelines)
- tribunalsontario.ca/ltb (forms N1 and instructions), -

End of Ontario Lease Renewal / Rent Increase Notice template