Landlords and tenants: serving notices

Many times tenants and landlords are improperly served notice to increase the rent or to move out. While it doesn’t mean that either parties are trying to take advantage, it just may be a case of misinformation. Here’s what you need to know:

Rent increases

Rent increases may happen every 12 months, and tenants should receive written notice (can use Form N1), 90 days before the new rent is to be in effect.

Buildings completed before November 15, 2018 can only be increase by the annual percentage set out by the Government of Ontario. Guideline for 2023 rent increases is up to 2.5%.

Buildings completed after November 15, 2018 doesn’t need to follow the guideline percentage and can be increased higher than that.

In some cases, a landlord may never bother to increase the rent.

Evicting a tenant

A landlord selling the property is not a valid reason for a tenant to move out. Landlords may still list the home with tenants living there, and the new buyers have the right to assume them as tenants.

If the landlords prefer to sell the home vacant, tenants and landlords may mutually agree to end the tenancy.

A valid and common reason for a landlord to evict a tenant is if they want to occupy the property personally. This extends to any new purchaser if the home was listed with a tenant. Occupancy for personal use also extends to children and parents, but this is not valid if occupancy is for anyone outside of immediate family.

A landlord must serve tenants with written notice (can use Form N12 for Personal Use), delivered using a specific method, with at least 60 days notice, and should compensate the tenant with one month rent.

Post your lease contract

During a lease contract, neither the landlord or tenant can make changes to the tenancy agreement. Only once a tenant has entered into a month-to-month lease, eviction with a valid reason would be allowed.

60 days before a lease contract ends, a tenant may give notice to move out, sign a new contract with their landlord, or carry on month-to-month without signing a new contract.

Both a landlord and tenant may decide whether it is best to continue in a contract or carry on month-to-month.