Following the recent passage of Bill 60, there has been much discussion about rent control. If you rent your property in Ontario, you’ve probably heard people speak about rent control—sometimes with relief, sometimes with frustration. But what actually is rent control, and how does it affect your rent from year to year? Below are answers to your common rent control questions, covering what it is, how it works, who it affects, and much more.
What is Rent Control in Ontario?
Rent control is a provincial rule that limits how much a landlord can raise the rent each year for most residential units, without specific approval. The maximum increase is known as the rent increase guideline, which is set annually by the Ontario government. These rules are set out in the Residential Tenancies Act (RTA) and aim to provide stability for tenants while giving landlords a fair process to raise rent under certain conditions.
What is the Rent Increase Guideline?
The rent increase guideline is the maximum percentage that most landlords can raise rent each year.
- It is set by the province annually.
- It is tied to Ontario’s inflation rate.
- It applies only to rent-controlled units.
For the upcoming year and next year, the guideline is 2.5% for 2025 and 2.1% for 2026, meaning most landlords cannot raise rent by more than those percentages.
Note: Landlords must always check the guidelines for the upcoming year before giving notice.
How Does the Rent Increase Guideline Work?
Landlords must respect two key rules when increasing rent:
- They can only raise rent once every 12 months, either since the last increase or since the tenant moved in.
- They must give 90 days’ written notice of the increase.
However, not all units are covered by this guideline.
Does Rent Control Apply to All Rental Units?
No. Rent control does not apply to units first occupied for residential use on or after November 15, 2018. These newer units have no cap on yearly rent increases (though landlords must still give proper notice).
How About Rental Units in Ontario Specifically?
No. Rent control applies only to units first occupied for residential use before November 15, 2018.
- Older units: rent increases are capped by the provincial guideline.
- Newer units (post-2018): not subject to rent control limits, but landlords must still follow proper notice rules.
How Can You Tell if a Unit is Rent-Controlled?
Check whether the unit was first occupied on or before November 15, 2018.
You can confirm this by:
- contacting the developer
- reviewing property records or occupancy permits
- asking the previous owner (if you purchased the building)
If the tenant disputes rent-control status, the onus is on the landlord to show documentation.
Can a Landlord Increase Rent Above the Rent Control Guideline?
Yes, but only in exceptional cases. They must apply to the Landlord and Tenant Board (LTB) for an Above-Guideline Increase (AGI).
These cases may be approved for:
- Major repairs or renovations
- Significant increases in property taxes
- Extraordinary operating costs (like insurance)
However, tenants can challenge or oppose AGIs at hearings.
Can a Landlord Raise Rent During a Lease Term?
No. Rent cannot be increased during an active lease agreement. Increases are only allowed after the lease ends or if it becomes month-to-month, and with proper notice.
How Often Can a Landlord Raise Your Rent?
Landlords can raise rent once every 12 months, and tenants must receive 90 days’ written notice before the increase takes effect.
Are Rent Increases Allowed if the Property is Sold?
Yes. A change in ownership does not reset the rules. A new landlord must still follow rent control, notice rules, and the 12-month rule for increases.
Does Rent Control Prevent a Tenant from Eviction?
Not directly; it only regulates increases. Evictions are governed by separate rules under the Residential Tenancies Act (RTA). However, it is worth noting that illegal rent increases cannot be used as grounds for eviction.
Are Utilities Included in Rent Control Rules?
Rent control applies only to base rent. If utilities are included in the rent, they cannot be removed or added without proper agreement. However, if utilities are separate, their costs are not subject to rent control and may change according to usage or provider rates.
Final Thoughts on Rent Control in Ontario
Understanding rent control in Ontario is essential for both landlords and tenants, especially as the rental landscape continues to evolve. Staying up to date with current regulations and reviewing trusted resources can help both parties navigate Ontario’s rental market with confidence. Whether you are a landlord or tenant, if you have any questions about your coverage, do not hesitate to contact us today.
Are You Renting? Keep Your Belongings (and Yourself) Safe.
Protect what matters most. Get your free tenant insurance quote today!
Whether you're looking to rent out a space or rent Read more
We have some recommendations on what you should have on Read more
Renters need insurance as much as homeowners do. Unfortunately, many Read more
