Misunderstandings often happen when it comes to serving notices for rent increases or ending tenancies. Most of the time, it’s not about one party trying to take advantage—it’s simply a case of not knowing the rules. Here’s a breakdown of the key points landlords and tenants in Ontario should be aware of.
Rent Increases
How often?
Rent can be increased once every 12 months.
Notice required:
Tenants must receive written notice—typically Form N1—at least 90 days before the rent increase takes effect.
How much?
For rental units in buildings completed before November 15, 2018: increases are capped by the Government of Ontario’s rent increase guideline. In 2023, that’s up to 2.5%.
For buildings completed after November 15, 2018: there’s no cap, and landlords can set a higher increase if they choose.
Important note:
Some landlords may never raise the rent, but they still have the right to do so within these guidelines.
Evicting a Tenant
Selling the property is not grounds for eviction.
Tenants do not have to move out just because the property is being sold. The new owner can take over the lease and become the new landlord.
Vacant possession?
If the landlord prefers to sell the property vacant, both parties must agree to end the tenancy. There’s no requirement for tenants to leave unless they agree.
Valid reasons for eviction:
One common reason is if the landlord—or a close family member (parent or child)—plans to move into the unit themselves. This right also extends to the buyer if the property is sold.
Notice requirements:
- Landlords must serve written notice using Form N12 (for personal use).
- Notice must be delivered correctly and provide at least 60 days’ notice.
- Landlords are also required to compensate the tenant with one month’s rent.
Lease Agreements and Month-to-Month Tenancies
During a lease:
Neither party can change the terms of the lease until it ends. Eviction (with valid notice) generally isn't possible during a fixed-term lease unless there are specific legal grounds.
When a lease ends:
Once the lease term finishes, tenants have three options:
- Give 60 days’ notice and move out.
- Sign a new lease with the landlord.
- Continue on a month-to-month tenancy under the same terms.
Deciding what’s next:
Both landlords and tenants can agree to renew the lease or move forward on a month-to-month basis.
Final Thoughts
Clear communication and understanding of the rules help both landlords and tenants avoid confusion or conflict. Serving proper notices, respecting timelines, and knowing your rights are key to a smooth tenancy experience.
Hi, I’m Roxy Ahamay, a blogger and writer passionate about real estate in Toronto, Canada. I enjoy researching and sharing tips to make your home search easier. If you’re in the market for a new home, I highly recommend connecting with Jessica Kee, a Toronto Realtor whose expertise and tips make her one of the best agents out there. Jessica’s knowledge can make your journey smoother and more successful. Reach out to her for guidance on your next big step!
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