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Tenant resource

Rent control in Ontario.

What's covered, what's not, and how the annual cap actually works.

What rent control is

Ontario's Residential Tenancies Act caps how much a landlord can raise the rent on an existing tenant from one year to the next. The cap is called the annual rent increase guideline, and it's set by the provincial government every year.

Which units are covered

Rent control applies to most residential units in Ontario that were first occupied as a residence before November 15, 2018.

Units that were first occupied for residential use on or after November 15, 2018 are exempt. The landlord of an exempt unit can raise the rent by any amount at the end of a fixed-term lease.

Why this matters before you sign: a brand-new condo built in 2020 is not rent-controlled. A 1970s purpose-built apartment usually is. Over a multi-year stay, the difference can be thousands of dollars. I'll tell you which category a unit falls into before you commit.

The annual guideline

  • The increase guideline is published every year by the Ontario Ministry of Municipal Affairs and Housing.
  • Rent can only be increased once every 12 months.
  • You must receive 90 days' written notice of any increase, on the proper LTB form (N1 — Notice of Rent Increase).
  • An increase that doesn't follow these rules is not legally enforceable.

Above-Guideline Increases (AGIs)

A landlord can apply to the Landlord and Tenant Board (LTB) for a rent increase above the annual guideline. AGIs are usually granted for:

  • Extraordinary increases in municipal taxes or utilities
  • Capital expenditures (major repairs or replacements to the building)
  • New or expanded services to the building

AGIs require LTB approval and tenants have the right to dispute the application.

Need a second set of eyes?

If your landlord just raised your rent and you're not sure if it's legal, send me the notice. I'll tell you in 10 minutes whether it's valid or worth disputing.

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