On the Radar: No more rent control for new apartments

Posted
January 7, 2019

The provincial government is allowing landlords of new apartments to raise the rent by any amount.

This month's On the Radar explains which units are affected by this change, and what it means for tenants.

Rent control basics

Most rented homes in Ontario are covered by 3 rules about rent increases:

  1. The landlord must wait at least one year between increases.

  2. The landlord must give the tenant at least 90 days' written notice of any increase.

  3. The increase can't be more than the provincial rent guideline for that year, unless the landlord gets approval from the Landlord and Tenant Board. For 2019, the guideline is 1.8%.

It's the last rule that's now been taken off most new rental units. This means that those units are exempt from the rent guideline.

Which rental units are no longer covered by the rent guideline?

The new exemption applies to many units created or first rented after November 15, 2018. That was the date the government announced this change.

The new law says that the following types of units are exempt from the rent guideline:

  • units in newly occupied buildings

  • units in newly occupied additions

  • new units in houses

Read more: On the Radar: No more rent control for new apartments