If you're a tenant in Ontario and you’ve just received notice of a rent increase, you might be worried about what could happen if you can’t pay the new amount. Understanding your rights – and the legal process landlords must follow – is crucial to avoid unnecessary stress or sudden eviction. This article explores the steps landlords can take under the Residential Tenancies Act, 2006 if tenants don’t pay an increased rent, along with helpful tips on how to respond and where to get support. If you need a refresher, see Understanding Rent Increases: What Tenants Need to Know to learn how much your rent can legally go up, and the notice your landlord must give.

What Happens When You Don’t Pay the New Rent After an Increase?

In Ontario, rent increases must follow very specific rules under the Residential Tenancies Act, 2006^[1]: a landlord can only raise rent once every 12 months and must provide at least 90 days’ written notice using the approved form.

If you do not pay the increased rent after the notice period and you’re not disputing the increase, your landlord can treat the unpaid amount as arrears (outstanding rent). This can trigger the eviction process. Here’s what you can expect:

• The landlord may give you a written demand for the unpaid rent.
• If you do not pay within a set time, the landlord can issue a formal eviction notice.
• If you still don’t pay or challenge the increase, the landlord can apply to the Landlord and Tenant Board for an eviction order.

The Landlord’s Process: Forms and Official Steps

This process is highly regulated to protect tenants' rights. Here are the forms and steps involved:

• Notice to End your Tenancy Early for Non-payment of Rent (Form N4)

If you owe rent (including any unpaid increases), the landlord must complete Form N4 and give it to you. This form officially tells you how much you owe and the deadline for payment to avoid eviction. Download Form N4 from the Landlord and Tenant Board.

• Application to Evict a Tenant for Non-Payment of Rent and to Collect Rent the Tenant Owes (Form L1)

If you don’t pay by the deadline on the N4, your landlord can file Form L1 with the Landlord and Tenant Board. This starts the legal eviction process. View and download Form L1 here.

Practical Example: If your rent is $1,200 and goes up to $1,250 after legal notice, but you continue paying $1,200, you’ll owe $50 each month. After a couple of months, your landlord may issue Form N4 for the total unpaid amount.

What Can Tenants Do?

If you believe the rent increase is not legal (for example, the notice wasn’t given properly or the amount is too high), you have rights. You can apply to the Landlord and Tenant Board to dispute it using Form T1: Tenant Application About Rent Increases Above the Guideline.

What Are Your Rights and Responsibilities?

Both tenants and landlords have protected roles under the law. For a general overview, see Obligations of Landlords and Tenants: Rights and Responsibilities Explained. Tenants must pay the rent set in the tenancy agreement unless a tribunal ruling or legal exemption applies. Delaying or withholding payment can lead to late penalties and the risk of eviction.

See a full overview at Tenant Rights in Ontario.

Key Legislation & the Tribunal

The Landlord and Tenant Board (LTB) is the official body that handles residential tenancy disputes in Ontario. The Board interprets and applies the Residential Tenancies Act, 2006, which sets rules for notice, eviction, and legal rent increases.

Summary: Timelines and Consequences

• Landlords must give proper written notice for a rent increase, and tenants must pay the new amount after the notice period ends.
• If you do not pay the increased amount, this is treated as unpaid rent, and eviction can be pursued with the correct forms.
• If you think the increase is not legal, act quickly to contest it with the LTB, or seek advice from a local tenant support agency.

Steps Tenants Should Take If Facing a New Rent Demand

If you’re having trouble paying the new rent amount, here’s what you should do:

• Check that your landlord followed all rules for a legal rent increase (Understanding Rent Increases: What Tenants Need to Know).
• Read every notice you receive carefully.
• Contact your landlord if you anticipate payment issues—sometimes you can arrange repayment.
• If you receive an N4, act quickly: pay the arrears by the deadline if possible.
• If you dispute the increase, submit an application to the LTB before any eviction application progresses.

Remember: communication and acting quickly will protect your tenancy and options.

For new rental options, Explore Houseme for nationwide rental listings.

FAQ: Tenants and Non-Payment of New Rent in Ontario

1. Can my landlord evict me immediately if I don’t pay the new rent? No, the landlord must provide proper notice and then apply to the Landlord and Tenant Board, giving you an opportunity to pay arrears or dispute the increase.
2. What form will my landlord use if they want to evict me for unpaid rent? Landlords must give you a Notice to End your Tenancy Early for Non-payment of Rent (Form N4), and can then apply to the Board using Form L1 if you do not pay by the deadline.
3. What if I believe the rent increase is not legal? You can file a dispute with the Landlord and Tenant Board as soon as you receive notice of the increase. Use the appropriate tenant form and seek help if needed.
4. Can I continue paying my old rent amount? If the rent increase is legal, you must begin paying the new amount, or risk arrears and possible eviction. Always check if the increase followed the correct procedure.
5. Where can I get help if I’m struggling to pay my rent? See the resources below for tenant advocacy organizations and government services that offer free advice and assistance.

Key Takeaways for Ontario Tenants

• Don’t ignore rent increase notices—verify their legality and get help if needed.
• Unpaid increased rent is considered arrears, and may lead to eviction if not addressed.
• The Landlord and Tenant Board provides legal processes to protect both sides—learn your rights and act promptly.

Need Help? Resources for Tenants

• Landlord and Tenant Board (LTB) – Ontario: File forms, view tenant rights, or dispute rent increases.
• Ontario Problem Rental Housing – Ministry of Municipal Affairs and Housing: Report issues or find official advice.
• Community Legal Education Ontario (CLEO): Tenant resources and legal information in plain language.

---

1. Residential Tenancies Act, 2006. Ontario. Read the Residential Tenancies Act here.
2. Landlord and Tenant Board (LTB). Official LTB website.
3. Landlord and Tenant Board Forms. LTB Forms portal.

Categories

Tenant Rights & Responsibilities Rent & Deposits Leases & Agreements Moving In / Out Maintenance & Repairs Evictions Roommates & Shared Housing Discrimination & Accessibility Utilities & Services Affordable Housing & Subsidies Dispute Resolution & LTB Safety & Security Privacy & Entry by Landlord Special Tenancy Situations Tenant Insurance & Liability Post-Eviction Resources Landlord Compliance & Penalties Legal Precedents & Case Summaries Mental Health & Tenancy