Ontario Form N2: Notice of Rent Increase (Exempt Units) Explained

If you rent a unit in Ontario that is not covered by the province's rent increase guideline, you might receive a Form N2 – Notice of Rent Increase (Exempt). Understanding what this form means, when it's used, and your rights as a tenant can help you feel more prepared and confident about next steps if your landlord presents you with one.

What Is Form N2 in Ontario?

Form N2 is an official document used by landlords when they wish to increase the rent for a unit that is exempt from Ontario's annual rent increase guideline. These exemptions typically apply to certain types of rental units, such as:

• Newly built units first occupied after November 15, 2018
• Units in care homes or long-term care facilities
• Non-profit housing or social housing units

If your home is covered by this exemption, your landlord can give you a Form N2 instead of the usual N1 notice. You can see the official form and instructions on the Ontario Landlord and Tenant Board (LTB) Forms page.

Who Oversees Rent Rules in Ontario?

The Landlord and Tenant Board (LTB) is responsible for resolving disputes and questions about rent increases and tenancy issues in Ontario. All rent increase notices must comply with rules in the Residential Tenancies Act, 2006.¹

When Can a Landlord Use Form N2?

The N2 form is used when:

• The rental unit is not subject to Ontario’s rent increase guideline (i.e., it’s exempt)
• The landlord wants to raise the rent by any amount and must give proper notice

Even if your unit is exempt from the guideline, a landlord must issue a written notice using Form N2 at least 90 days before the new rent takes effect. This gives tenants time to decide on their next steps.

What Does the N2 Form Include?

• The address of the rental unit
• The current rent amount
• The proposed new rent and the effective date
• Information on exemptions and tenant rights

Tenants should review the form for accuracy and dates, as errors could make the increase invalid.

Your Rights When You Receive a Form N2

Receiving a Notice of Rent Increase (Exempt) doesn’t mean you lose your rights. Even for exempt units, tenants are protected by Ontario law in these ways:

• The N2 form must be given at least 90 days before the rent increase date
• The form must be filled out correctly and delivered properly
• Tenants can challenge the validity of the notice at the Landlord and Tenant Board
• Landlords cannot force you to accept the new rent before the notice period ends

To learn more about general rent increase rules and your rights, see Understanding Rent Increases: What Tenants Need to Know.

For details about your overall legal protections as a renter, visit Tenant Rights in Ontario.

What to Do Next?

Here are your options and typical next steps if you receive Form N2:

• Review the form: Check dates, rent amounts, and confirm your unit’s exemption status.
• Budget for the increase: If you agree with the notice, prepare your household budget or speak to your landlord about any concerns.
• Ask questions: If the exemption is unclear, request written proof from your landlord.
• File a dispute: You can challenge the notice with the LTB if you believe your unit is not exempt or the increase wasn’t handled properly.

Understanding how rent increases work is just one part of being a successful tenant. For help managing your finances after a rent change, read Tenant's Guide to Paying Rent: Rights, Responsibilities, and Tips.

Official Form N2 – How and When to Use It

The official Ontario Form N2 is available from the Landlord and Tenant Board. Download Form N2 (PDF).

Example: Suppose you rent a newly-built condo first occupied after November 15, 2018. In April, your landlord gives you Form N2 for a rent increase to take effect in August—this is valid as long as you receive proper written notice at least 90 days beforehand.

Quick Summary: Rent Increase Notices for Exempt Units

• Form N2 is used only for rental units exempt from guideline rent control
• Your landlord must give you at least 90 days' notice in writing
• You can ask questions or challenge the notice if you disagree

FAQ: Form N2 (Exempt Rent Increase) in Ontario

1. Does Form N2 mean there is no limit to rent increases?
   For exempt units, there is no government-set maximum, but landlords must still give you at least 90 days' written notice and follow all proper procedures.
2. Which types of units are usually exempt from the guideline?
   Most often, new buildings first occupied after November 15, 2018, care homes, and some social housing units. Ask your landlord or the Landlord and Tenant Board if unsure.
3. What should I do if my landlord did not use the proper form?
   If you receive an incorrect or incomplete notice, you can contact the LTB for guidance or dispute the increase before paying the new rent.
4. Can I refuse a rent increase issued by N2?
   You may challenge the notice if you believe the exemption does not apply or if the notice did not meet legal requirements. Otherwise, you must pay the new rent if you continue living in the unit after the effective date.
5. Where can I search for other available rental homes if the increase is unaffordable?
   You can Browse apartments for rent in Canada for alternative housing options.

Key takeaways:

• Form N2 applies to exempt units—ensure you receive at least 90 days’ notice before any rent increase
• Ask questions if the exemption is unclear, and dispute improperly issued notices with the LTB
• Understand your rights about rent payments and overall tenancy

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB): File disputes, learn about notice requirements, and download official forms.
• Ontario’s Renting Guide: Government-issued guide to tenant and landlord rights.
• Tenant Rights in Ontario
• Contact local tenant advocacy groups or community legal clinics for free advice if you’re unsure about a rent increase notice.

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1. Residential Tenancies Act, 2006 (Government of Ontario)
2. Landlord and Tenant Board (LTB) Ontario
3. LTB Forms – Official Source

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