N1 Form Notice of Rent Increase Ontario Canada 2023

N1 Form Notice of Rent Increase Ontario Canada 2023

 

What is the N1 Form Notice of Rent Increase Ontario?

N1 Form is served to the tenant as a notice to increase the rent in Ontario, Canada. If your unit is subject to the provincial rent increase guideline, the notification for the rent increase should be on Form N1.

 

Instructions for N1 Form Notice of Rent Increase Ontario Canada 2023 

How to Fill out the N1 Form?

 

The following information is required to complete the Form and create a legally binding agreement:

 

The Name of the Landlords and Tenants 

 

Under “To” 

 

Include the Legal Name and the Nickname (if the tenant has one). If it is a joint tenancy,  include the full names of all the tenants.

Under “From”

 

The Legal Name of the Landlord

Address of the Rental Unit 

details of the Address should be provided, such as the Unit Number, Main Floor, Basement, and Postal Code.

New Rent

 

In Form N1 Ontario, put the date for the rent increase. Fill in the increased rent amount, mentioning dollars and cents too. Also, you must mention when the tenant must pay rent in the lease period, e.g., monthly, yearly, etc.

Then, Fill in the percentage by which the rent will increase.

 

Signature of the Landlord/Representative

 

Shade the circle next to Landlord if you are the owner.

Fill in the “Representative” circle if you are the owner’s representative. Name and phone number are essential. Next, add your signature and the date.

In the case of the Representative, additional information, such as the company name (if available) and mailing address, must be given. Include your phone number and fax number (if available).

You must keep a duplicate of the notice as evidence. The smallest mistake could invalidate an N1 Form.

 

The Important Legal Information for N1 Form Notice of Rent Increase

 

  • The rent can be increased after 12 months of the last rent increase or the date when a new tenancy agreement begins.
  • The notice has to be served 90 days before the rent increase date. For example, if the landlord wishes to increase the rent on January 1st, 2023, the last date to provide the N1 form to the tenant is 30th September 2022, not even 1st October 2022.
  • Where the landlord and tenant have signed an agreement to raise the rent above the guideline, no notice of rent increase is needed. In that case, Form N10 is used.

 

How to Deliver the N1 Form Notice of Rent Increase?

 

The notice can be delivered physically to the tenant, but the recipient should be an adult. It may be placed under the tenant’s door or in the tenant’s mailbox. Additionally, it can be placed through the tenant’s mail slot.

It can be sent via fax, courier or by mail. Keep a copy of the fax confirmation sheet if you fax the notice. The day it is emailed should be the date on the document.

If a courier is used, allow an extra working day for delivery.

If the notice is delivered by mail, keep a record, such as the Post Office Receipt. Be aware that the Landlord must receive the notice by mail within an extra 5 (Five) days per legal requirement.

The notice can be delivered electronically as long as it is specified in the tenancy agreement or you have a written consent from the tenant.

Click here to know more about how to serve the document to your tenant.

 

Rent Increase Guideline

 

The rent increase guideline in Ontario for 2023 is 2.5%.

The rent increase limit is 2.5% according to the annual rent increase guideline. The Rise is restricted to the annual rent increase guideline. The guideline is announced by the Ministry of Municipal Affairs and the calculations are based on the Ontario Consumer Price Index (CPI).

The Residential Tenancies Act of 2006 covers almost all private residential rental units to which the guideline is applicable. This applies to most tenants, including tenants in:

  • Communities on leased land
  • Basement apartments, rented houses, condos and apartments
  • Care homes
  • Mobile homes

There are two exemptions to rent control:

  1. Rent control does not apply to new construction, additions to existing structures, and new basement apartments rented for the first time after November 15, 2018.
  2. The guideline is not applicable to particular types of rental properties, including:
  • Commercial Properties
  • Community Housing Units
  • Long-Term Care Homes
  • Vacant Residential Properties

The Residential Tenancies Act applies to social housing, but there are different regulations regarding rent control and rent increase notices.

The Residential Tenancies Act applies to social housing, but there are different regulations regarding rent control and rent increase notices.

 

How Much Rent Can I Increase in Ontario with the N1 Form?

 

You may raise your rent by 2.5% if you’ve had your tenant for a considerable amount of time and your current rent is less compared to the Market rent.

There are 3 factors to consider when deciding by how much to increase rent. They are:

  1. How much responsible the tenant is and how well they’ve been taking care of the property?
  2. Changes in overhead expenses such as insurance, mortgage payment, utilities and tax on property. Compare it with the cash flow.
  3. What is the Current market rent and your proposed rent? If the current market rent is higher, you may proceed with the increase.

For further details, click here to visit Ontario’s website and make informed decisions.

 

Previous Annual Rent Increase History According to Guidelines

 

The Table below shows Ontario’s annual rent increases from 2018 to 2023.

Year% Increase in Rent, according to Guideline
20232.5
20221.2
20210

2020

 

2.2

2019

 

1.8

2018

 

1.8

 

Examples Of Rent Increase Calculations

Case 1 – Increase Rent according to the Rent Increase Guideline:

 

The rent is $1000.00. The landlord wishes to increase the rent on October 1, 2019, by the rent increase guideline, i.e 1.8%.

The calculation of the Rent Increase:

$1000.00 x 1.8% = $18.00

New Rent: $1000.00 + $18.00 = $1018.00.

 

Case 2 –  Increase Rent higher than the guideline

 

The landlord applied to increase the rent on October 1, 2019, higher than the guideline %. The rent is $1000.00. If RTB approves the landlord’s application, the landlord can increase the rent by the guideline, plus 4%.

The calculation of the Rent Increase:

1.8% + 4% = 5.8%

$1,000.00 x 5.8% = $50.80

The new rent is $1,000.00 + $50.80 = $1,050.80.

 

Technical Notes for N1 Form Notice of Rent Increase

 
  • You cannot edit the form online. Thus, you should use Adobe Acrobat Reader on your personal computer to edit the N1 Form. Download the free software from Adobe’s Website.
  • You can also visit the website of the Landlord and Tenant Board (LTB), Ontario, to download Form N1.

 

How MiPropertyPortal Can Help?

 

In MiPropertyPortal you can send N1 Notice of Rent Increase in a few seconds. The portal automatically fills the form with all the information needed. You can either download the filled-in form, send it manually, or send it electronically from the portal. You must have prior consent from the tenant for electronic communication.

When the form is electronically sent, the portal also applies the new rent increase after 90 days and keeps a copy of the notice in the tenant profile.

You can also send N1 rent increase notice in bulk from MiPropertyPortal.

So, you can save a lot of time using the Best Property Management Software in Canada?  Click here to learn the astounding features of the MiProperty Portal. Contact us and leave the rest to  MiProperty Portal while you enjoy your well-deserved relaxation.

 

Message for the Tenant for Rent Increase with N1 Form Notice of Rent Increase

 

If you think your rent was increased by an incorrect amount or your landlord did not provide proper notice, you may file a complaint with the LTB within 12 months of the charge.

Content is taken from Notice of Rent Increase; here, Ontario N1 Form instructions are explained in detail. Examples are also provided on how to calculate the new rent after the increment. You may learn more about L2 Form, N5 Form, N8 Form, N13 Form, N2 Form, N9 Form, and N12 Form

 

Share:

Facebook
Twitter
Pinterest
LinkedIn

1 Comment

  • Molly
    2 months ago - Reply

    When can I use an N11 form verses an N12 form

Leave a Comment

Your email address will not be published. Required fields are marked *

Add Comment *

Name *

Email *

Website

Social Media

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.

Categories

On Key

Related Posts