Ontario Form N2: Rent Increase for an Exempt Unit
Find out who uses this form, what to fill in and when to send it.
Form N2 is for a rental unit that is exempt from Ontario’s rent-increase guideline. It does not mean all tenancy protections disappear. In ordinary N2 situations, landlords must still provide at least 90 days’ written notice and wait 12 months between rent increases.
This is a plain-language guide, not a substitute for the official Tribunals Ontario form. Complete the government PDF to give an actual notice.
How do you know N2 applies?
The landlord must establish a real exemption from rent-increase limits, not merely state that a unit is “new” or that a lease says rent control does not apply. Examples can include units first occupied for residential purposes after November 15, 2018, and certain other legally exempt accommodations. The precise first-occupancy and statutory conditions matter.
Use N1 instead for an ordinary rent-controlled unit, or N3 for a guideline-covered care-home unit. Some subsidized and social-housing arrangements require their own eligibility analysis.
How much can the rent rise?
If the particular unit is genuinely exempt from the guideline, the annual percentage cap does not apply. The amount still must be shown properly on the notice, and other relevant law, agreements or special rules may constrain the increase. N2 does not authorize an increase effective immediately.
Assume the unit is legally exempt and monthly rent is $1,800. The landlord proposes $1,950 beginning June 1, 2027, a $150 increase (about 8.33%). The 1.9% guideline would not cap a genuinely exempt unit, but the landlord still generally needs the 90-day notice and 12-month timing.
Complete Form N2
- Tenant and landlord: name all tenants and landlords; add the landlord’s mailing address.
- Address: identify the exact unit and postal code.
- New rent: give the exact new rent amount, how often it is due and the effective date; N2 does not require the N1 guideline explanation section.
- Signature: sign and date the notice as landlord or representative; keep a copy and evidence of service.
How and when to serve N2
Serve at least 90 days before the increase takes effect, using allowed tenancy-notice methods. Examples include handing it to the tenant, leaving it in the mailbox, placing it under the door, and lawful mail or courier delivery. Do not post it on the door. Take account of deemed service time for non-personal delivery.
What if the tenant disputes the exemption?
The tenant can challenge an increase they believe is unlawful through the LTB process. Keep documents showing first residential occupancy, any relevant construction/authorization facts, and the prior increase date. If exemption is uncertain, confirm it before relying on N2.
Common mistake to avoid
“Built after 2018” by itself is not a complete exemption analysis. Check when the specific space was first occupied for residential purposes.