The Residential Tenancies Act (RTA) of Ontario sets a rent increase cap each year to protect tenants. However, in certain situations, rent increases above this guideline are permitted. In such cases, landlords and tenants must reach a mutual agreement using the N10 – Agreement to Increase the Rent Above the Guideline form. This article will discuss the purpose and use of the N10 form, as well as important considerations during the agreement process.
Purpose of the N10 Form
The N10 form is an official document used when a landlord and tenant agree to increase the rent above the guideline. This form clearly records both parties' rights and responsibilities, serving as proof that the agreement was made voluntarily.
Situations Where Rent Increases Above the Guideline Are Allowed
- Additional Services or Amenities Provided by the Landlord
When the landlord offers additional services or amenities, such as newly installed parking spaces, air conditioning, or laundry facilities. - Major Improvements or Repairs to the Property
When the landlord makes significant structural improvements or repairs that greatly enhance the tenant’s living conditions. - Mutual Agreement Between Both Parties
When the landlord and tenant freely negotiate and agree on the rent increase.
How to Complete and Submit the N10 Form
- Mutual Discussion
Before increasing the rent, the landlord and tenant should have a thorough discussion about the reason for the increase and the amount. - Complete the N10 Form
Download the N10 form from the Landlord and Tenant Board (LTB) website and fill it out. The form must include:- The current rent and the new rent after the increase
- The reason for the rent increase
- The amount of the increase and the date it will apply
- Signatures and Agreement
Both the landlord and tenant must sign the form. The tenant has the right to withdraw consent within 30 days of signing. - Document Storage
After completing the form, both parties should keep a signed copy for their records.
Important Considerations When Agreeing to the N10 Form
- Voluntary Consent from the Tenant
The tenant must agree to the rent increase freely, without pressure. If consent is coerced, the agreement may be invalidated. - Adherence to the Legal Withdrawal Period
The tenant can withdraw consent within 30 days after signing, so the landlord cannot apply the increase during this period. - Fair Negotiation
Ensure that the rent increase is reasonable and aligned with the tenant’s living standards.
Work with REOCA
REOCA is a platform that offers expert support for resolving all rental issues. Seek help from REOCA-certified professionals to resolve legal and administrative issues that may arise during the N10 form completion and agreement process. With a fair and transparent process, both parties can reach a satisfactory outcome.
The N10 – Agreement to Increase the Rent Above the Guideline form is a crucial tool for recording a clear agreement between both parties regarding rent increases. When discussing a rent increase, it is important to follow legal procedures, respect the tenant's rights, and negotiate through reasonable dialogue. With REOCA, you can navigate this process smoothly.
Handle rent increases above the guideline through the correct procedure!
