The Situation
You receive a text from your landlord: "New lease year starts March 1. Your rent is going up $200/month. Let me know if you have questions."
A $200 increase on your $1,500 monthly rent is a 13% increase. It's way more than the government-set limit. Plus, your landlord gave you less than 90 days notice (you got it in early February for a March 1 start).
You know something's wrong. But how do you respond? And what happens if you refuse to pay?
This walkthrough shows you how to check the law, respond to your landlord, and file with the LTB if needed.
Checking the Law
Under RTA s.116, your landlord can only raise your rent under specific rules:
Rule 1: Once per 12 months
Your landlord can only raise your rent once every 12 months. The increase takes effect on the anniversary date of your tenancy or your lease renewal date.
Rule 2: Cannot exceed the guideline
The increase cannot exceed the government-set rent increase guideline. For 2025, this is 2.5%. For example, if your rent is $1,500, the maximum legal increase is $37.50/month (2.5% of $1,500).
Rule 3: 90 days written notice required
Your landlord must give you 90 days written notice using the official N1 form. The notice must specify the new rent amount and the date it takes effect.
Rule 4: Exception: Above-guideline increases
Your landlord can ask the LTB for a higher increase (above 2.5%) only for major repairs, capital improvements, or property tax increases. This is rare and requires LTB approval.
Your Situation: Multiple Violations
- The increase ($200) far exceeds the 2025 guideline (2.5%)
- You received only 4 weeks notice, not 90 days
- The notice was informal (text), not the official N1 form
Conclusion: This rent increase is illegal. You can refuse to pay the increase.
Your Response
Now that you know the increase is illegal, here's how to respond:
Step 1: Respond in Writing
Send your landlord a written response by email. Keep it professional and factual:
Subject: Re: Rent Increase Notice
Dear [Landlord Name],
I received your notice of a $200 rent increase effective March 1, 2025. I am unable to accept this increase for the following reasons:
1. Under RTA s.116, rent increases cannot exceed the government-set guideline. For 2025, the maximum lawful increase is 2.5%, or $37.50/month on my $1,500 rent.
2. RTA s.116 requires 90 days written notice using the official N1 form. I received your notice via text less than 4 weeks before the proposed increase date.
3. For these reasons, the proposed increase is illegal, and I will not pay more than $1,500/month (the current lawful rent).
If you wish to discuss this further, I am available to speak with you. Otherwise, I will continue paying my current rent of $1,500/month.
Sincerely,
[Your Name]
Save this email in a folder. You may need it later if you file with the LTB.
Step 2: Do NOT Pay the Increase
Continue paying your current rent ($1,500/month). Do not pay the additional $200. You have the legal right to refuse an illegal increase.
Step 3: Document Everything
Keep copies of:
- The original text or notice from your landlord
- Your written response
- Proof of your rent payments (bank statements, receipts)
- Any correspondence with your landlord about the increase
What If Landlord Insists
Some landlords don't accept "no" easily. Here's what might happen and how to respond:
Scenario: Landlord Demands the New Rent
Your landlord sends another message: "You need to pay the $1,700 starting March 1 or you'll be in breach of the lease."
Your response:
This is an empty threat. Your landlord cannot evict you for refusing to pay an illegal rent increase. RTA s.116 protects your right to refuse. Document this message and keep it with your evidence.
Scenario: Landlord Threatens Eviction
Your landlord says: "If you don't pay the new rent, I'll file eviction."
Your response:
An illegal eviction threat is harassment under RTA s.23. If your landlord actually tries to evict you for refusing an illegal increase, the LTB will dismiss the eviction and may award you compensation for harassment.
Keep records of all threats. If eviction papers arrive, file a T2 (Tenant's Rights Claim) application immediately.
Scenario: Landlord Offers a Compromise
Your landlord says: "Okay, how about I raise it to $1,600? That's a 6.7% increase."
Your response:
Still illegal. Any increase above 2.5% is unlawful unless the LTB has approved an above-guideline increase. You can counter-offer your current rent with a lawful 2.5% increase if you want to be generous, but you're not obligated.
Best practice: Stick to the current rent until the LTB clarifies your legal rent.
Filing T1
If your landlord won't accept your refusal, you can file a T1 application at the LTB. This formally claims your landlord has violated RTA s.116 and asks the LTB to order your landlord to stop.
When to File T1
File T1 if:
- Your landlord won't withdraw the illegal increase after you've informed them of the law
- You've paid the illegal increase and want it back (refund of overpayment)
- Your landlord is threatening eviction for refusing the increase
What to Include in Your T1 Application
Your application should state:
- Your current rent ($1,500/month)
- The proposed illegal increase ($200/month to $1,700)
- When you received the notice (February, less than 90 days before March 1)
- That the increase exceeds the 2025 guideline (2.5%)
- That it was served informally (text), not via official N1 form
- Reference to RTA s.116
- Your request: that the LTB order your rent to remain at $1,500/month and prohibit the increase
What You'll Get
If the LTB finds in your favor (which is very likely), you will receive:
- An order stating the illegal increase is void
- Your rent remains at $1,500/month (or at the 2.5% guideline-compliant amount)
- If you paid the illegal increase, you can claim a refund for the overpayment
- Potentially, interest on the refund
Timeline
Most T1 applications for illegal rent increases are heard within 4-6 weeks. The decision is usually straightforward: either the increase was legal or it wasn't. There's little room for landlords to argue around clear RTA s.116 rules.
The Outcome
In most cases, when tenants file T1 for illegal rent increases, the LTB sides with the tenant. The law is clear.
Most Likely Outcome
The LTB will:
- Find that the $200 increase violates RTA s.116 (exceeds guideline, insufficient notice)
- Order that your rent remains at $1,500/month
- If you paid the increase, order a refund plus interest
- Prohibit your landlord from collecting the illegal amount
Key Takeaways
- You have the legal right to refuse an illegal rent increase. Don't pay it.
- Inform your landlord in writing of the violation and cite RTA s.116.
- If they insist, file T1. The law is on your side.
- If your landlord threatens eviction for refusing the increase, document it and consider a T2 harassment claim.
- The 2.5% guideline is set annually. Check ontario.ca for the current year's limit.