In Ontario’s highly regulated rental market, documentation is everything. For landlords, the n1 form is the most critical document to master. Formally known as the Notice of Rent Increase, it is the legal requirement for notifying tenants of a rent hike in units subject to provincial rent control guidelines. Even the smallest clerical error on this form can lead to a dismissal by the Landlord and Tenant Board (LTB), potentially costing you thousands in delayed revenue.
Why the Form N1 is Mandatory
Under the Residential Tenancies Act (RTA), landlords cannot use custom letters, emails, or informal lease clauses to implement a rent increase. The Ontario rent increase form n1 is the only valid instrument for this purpose. If you use the incorrect form or omit required details, the LTB may find the increase void. In some cases, landlords have been ordered to refund up to 12 months of collected increases simply because the original n1 form was filed incorrectly.
Critical Steps for Completing the Form N1
- Identifying All Parties: You must list the full legal names of every tenant named on the lease agreement. If a tenant has moved or a new one has been added via a lease amendment, the form must reflect the current legal occupants.
- Accurate Math (The “No Rounding” Rule): When calculating your increase, do not round the final number up. For example, if your 2.1% increase results in a new rent of $1281.254, you should list $1281.25 or $1281.00. Rounding up to $1282.00 constitutes an illegal rent increase and can invalidate the entire n1 form.
- Unit Identification: Ensure the address of the rental unit is complete, including the apartment or suite number and the correct postal code as it appears on the original lease.
The 90-Day Rule and Service Deadlines
To legally increase rent, you must provide at least 90 “clear days” of notice. This means the day you serve the notice and the day the increase begins do not count toward the 90 days. For example, if you want an increase to take effect on January 1st, the n1 rent increase form must be in the tenant’s hands no later than September 30th of the previous year.
Approved Methods of Service
The act of delivering the n1 form is called “serving,” and it must follow strict LTB protocols. Acceptable methods include:
- Handing it directly to the tenant or an adult occupant in the unit.
- Placing it in the mailbox or mail slot (if no key is required).
- Sending it by regular or registered mail (Note: You must add 5 days to your 90-day notice period to account for mailing time).
- Email service is only valid if the tenant has previously provided written consent to receive legal documents via email, typically via the Ontario Standard Lease.
Pro Tip: Never post the n1 form to the door of the unit, as this is not a recognized method of service for rent increases and could result in your notice being thrown out by the LTB.
