If your rental home in Ontario has changed hands and there’s a new landlord, you might wonder if your rent can suddenly be increased. Understanding your rights as a tenant is crucial to avoid unexpected financial surprises. This article explores the rules about rent increases when ownership changes, what steps your landlord must follow, and how to protect yourself according to Ontario’s Residential Tenancies Act, 2006.

How Rent Increases Work After a Change of Landlord

When a property changes ownership, the new landlord takes on the existing rental agreements. This means your tenancy continues, and the same rules about rent increases still apply. A new landlord cannot raise your rent immediately just because they have taken over the property.

• The new landlord must follow the rent increase rules outlined in the Residential Tenancies Act, 2006.
• Rent can only be raised once every 12 months, and only with proper written notice.
• Your rental agreement (lease) stays unchanged unless both you and your landlord agree to new terms.

For more information on rental agreements and what to expect after moving in, see What Tenants Need to Know After Signing the Rental Agreement.

Notice Requirements: The N1 Form

To legally increase your rent, even a new landlord must give at least 90 days' written notice using the official Form N1 – Notice of Rent Increase (official N1 form). This applies whether you have a month-to-month or fixed-term lease.

• The notice must state the amount of the new rent and when it will take effect.
• The increase can only take place 12 months after the last legal rent increase or after your tenancy began.

Government Guidelines on Rent Increases

The Government of Ontario sets a rent increase guideline each year, which most landlords must follow. For 2024, the guideline is 2.5%. Some units may be exempt (for example, rentals built after November 15, 2018), so it's important to check if your home qualifies. You can find official guidelines on the Ontario government's guideline page.

If you believe your rent increase is above the legal guideline, you may have grounds to dispute it by applying to the Landlord and Tenant Board (LTB) of Ontario, the official tribunal handling rental disputes in the province.

What Tenants Should Do If They Receive an Unexpected Rent Increase

If you receive a rent increase notice from your new landlord, take these practical steps:

• Check the date: Is the last increase at least 12 months ago?
• Review the amount: Is it within the allowed guideline?
• Look for the proper form: Has your landlord used Form N1 and given you at least 90 days’ notice?
• If any of these requirements are not met, you may have the right to dispute the increase with the Landlord and Tenant Board.

Understanding your rights and responsibilities can also help you respond proactively. For a detailed look at expectations for both landlords and tenants, review Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

For broader information on rental laws, see Tenant Rights in Ontario.

Key Official Forms for Rent Increases

• N1: Notice of Rent Increase
  • When it's used: Any landlord raising the rent (new or existing) must provide this form at least 90 days before the new rent starts.
  • Example: If the new landlord wants to raise the rent in September, they must deliver Form N1 by early June.
  • Download the official N1 form
• T1: Tenant Application for a Rebate
  • When it's used: If you pay an illegal or improper rent increase, you can use Form T1 to request a refund.
  • Download the official T1 form

All forms and instructions are available from the Landlord and Tenant Board Forms page.

Finding Your Next Home

If you decide to move due to an impending rent increase or simply want more options, Explore Houseme for nationwide rental listings—the all-in-one rental site for Canadian cities, including Toronto and beyond.

Frequently Asked Questions

1. Can a new landlord raise my rent as soon as they buy the property?
   No. Even if a new landlord buys your rental unit, they must follow the same rules: they need to wait at least 12 months after your last increase or the start of your tenancy and must provide written notice at least 90 days in advance using Form N1.
2. Do the rules change if I have a fixed-term lease?
   No. Your lease stays valid after a sale. Rent increases must still comply with Ontario's laws and can’t occur during your fixed lease term unless your agreement allows for it.
3. What if my landlord gives me a rent increase notice that is too short or on the wrong form?
   The rent increase is not legal. You do not have to pay the increased amount unless all legal requirements are met.
4. How can I challenge a rent increase I believe is illegal?
   You can file an application with the Landlord and Tenant Board (LTB), using Form T1 if you’ve already paid the extra rent.
5. Is my apartment exempt from rent control if it was recently built?
   Possible. Units first occupied as a residence after November 15, 2018 may be exempt. Confirm your building’s age or ask the Landlord and Tenant Board for clarification.

Need Help? Resources for Tenants

• Landlord and Tenant Board of Ontario – information, forms, and dispute resolution
• Ontario Ministry of Municipal Affairs and Housing: Your Rights as a Tenant
• Ontario tenants’ support organizations and local legal clinics

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1. Residential Tenancies Act, 2006 – Read the legislation
2. Landlord and Tenant Board (LTB) – Official website
3. Government of Ontario – Annual Rent Increase Guideline
4. Landlord and Tenant Board Forms – Official forms

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