Raising Rent in 2027: The 1.9% Guideline and the N1

Published November 12, 2026

Ontario's rent increase guideline for 2027 is 1.9%, down from 2.1% in 2026. (Source) The rules themselves haven't changed. Our overview of Ontario rent increases explains them. This post is the working: five steps, with real dates, for an increase that takes effect in 2027.

Step 1: Check the guideline covers the unit

The guideline doesn't apply to "new buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018." (Source)

The Act sets out the details in section 6.1. For a unit in a house, the exemption covers a unit that became a self-contained unit after November 15, 2018, in a house that had no more than two units on that date. It also needs one more thing: either the owner lived in another unit in the house when it was first occupied, or the unit was built in space that was unfinished. (Source) The exemption generally doesn't apply to a tenancy whose agreement was entered into on or before November 15, 2018, with some exceptions in the section. (Source) If a tenant disputes it, the landlord must prove those facts. (Source)

The N1 instructions say to use the N2 if the unit is exempt from the rules that limit the amount of the increase. (Source) An exempt unit still needs the 12 months and the 90 days' notice. The rest of this post is about the N1.

Step 2: Find the earliest date the rent can go up

You can raise the rent only once at least 12 months have passed since the tenant's last increase or, if there hasn't been one, since the tenant moved in. (Source) The Act counts from "the day of the last rent increase" or "the day the rental unit was first rented to that tenant". (Source)

• Last increase took effect March 1, 2026: the earliest next increase is March 1, 2027.
• Tenant moved in July 1, 2026, with no increase since: the earliest is July 1, 2027.

Use the date the last increase took effect, not the date you served the notice for it.

Step 3: Calculate the new rent

Multiply the current rent by 1.9% and add it on. The N1 instructions work it the same way. (Source)

Round down, not up, so you stay at or under the guideline. You can always ask for less than the maximum.

The guideline is set for each calendar year. (Source) An increase that takes effect in 2027 uses the 2027 figure, even if you serve the notice in 2026. That matches the approach in our overview.

Step 4: Work out the last day to serve

You must give the tenant written notice in the proper form at least 90 days before the increase takes effect. (Source) If you don't, the increase is void and you have to give a new notice. (Source)

Count back 90 days from the increase date:

The mail column comes from the Act: a notice given by mail is treated as given on the fifth day after mailing. (Source)

Two cautions:

• Leave a margin. Serve a week or more before the dates above, so a day's difference in counting never matters.
• The March 1 example crosses February. Count the actual days rather than "three months back". Three months before March 1 is December 1, which happens to be exactly 90 days in 2027. Three months before July 1 is April 1, which is 91 days.

Step 5: Fill in and serve the N1

Download the current N1 from the LTB's forms page. On it, fill in:

• every tenant's name, and every landlord's name and mailing address
• the full address of the unit, including the unit number and postal code
• the date the rent will increase, and the new rent in dollars and cents, with how often it's paid
• the amount of the increase, and the percentage
• whether the increase is at or below the guideline (it is, if you used 1.9% or less)
• your signature and the date

(Source)

You can give the notice by hand to the tenant or an adult in the unit, leave it in the mailbox or where mail is normally delivered, slide it under the door or through the mail slot, or send it by fax, courier or mail. You can't post it on the door. (Source) Write down how and when you gave it. If you'll need a certificate of service, this post on serving notices covers the record-keeping for the N4.

A worked example from start to finish

A tenant in a 1970s triplex pays $2,150 a month. Their last increase took effect on March 1, 2026.

1. Covered? The building was lived in before November 15, 2018, so the guideline applies and the form is the N1.
2. Earliest date: March 1, 2027.
3. New rent: $2,150.00 × 1.9% = $40.85. The new rent is $2,190.85.
4. Last day to serve: December 1, 2026 by hand, or mailed by November 26, 2026. Aim for mid-November.
5. Serve and record: hand the N1 to the tenant on November 16, note the date and how, and keep a copy.

From March 1, 2027, the rent due is $2,190.85. The next increase can take effect no earlier than March 1, 2028.

If it goes wrong

A tenant can dispute an increase at the LTB within 12 months after it was first charged, if they didn't get proper notice or the increase was improper. (Source) So a missed date doesn't go away quietly. If you served late, don't charge the new rent. Serve a fresh notice with a later increase date.

If you missed this year's window entirely, the 12 months still count from the last increase. The next one just starts later, and the 12-month clock then runs from that later date.

Rentingwell's rent increases page shows, for each Ontario unit, when the rent can next go up, the maximum under the guideline and the date to give notice by. It reminds you 120 days before. From there it fills in the Board's N1 with the new rent, the increase and the percentage, the tenants and your mailing address. You review it, sign it and give it to the tenant yourself. Once you record the date you gave the notice, it changes the rent in the ledger on the increase date. Start free