Rent-Control-Exempt Units in Ontario: What Landlords Need to Know
Units first occupied as residences on or after November 15, 2018 are exempt from Ontario’s rent increase guideline. That changes how much you can raise the rent, but not how you do it. Here is what the exemption means.
Key points
- Units first occupied for residential purposes on or after November 15, 2018 are exempt from the rent increase guideline.
- You can raise the rent by more than the guideline without applying to the LTB.
- You still need 90 days’ written notice on the proper form, and only one increase every 12 months.
- The key date is first residential occupancy, not when the building was built.
One of the biggest changes to Ontario’s rental rules in recent years is the rent control exemption for units first occupied on or after November 15, 2018. If your unit qualifies, you aren’t bound by the annual guideline, but there are still rules to follow.
Which units are exempt
Units first occupied for residential purposes on or after November 15, 2018 are exempt. This can include new builds, new secondary suites and conversions first used as homes after that date. What matters is when the unit was first lived in, not when it was built.
What exempt means in practice
| Exempt unit | Guideline unit | |
|---|---|---|
| Rent for a new tenant | Any amount you agree | Any amount you agree |
| Annual increase amount | Any amount | Up to the guideline, unless the LTB approves more |
| Written notice | 90 days, proper form | 90 days, proper form |
| How often | Once every 12 months | Once every 12 months |
Not sure whether your unit is exempt? We can check before you send a rent increase.
Book a free 20-minute call →The rules that still apply
- At least 90 days’ written notice on the Notice of Rent Increase form.
- No more than one increase every 12 months for the same tenant.
- An increase without proper notice is void.
The exemption changes the amount, not the process. See rent increase rules in Ontario.
Confirming your unit is exempt
- Find the date the unit was first lived in as a home.
- Gather proof: the first lease, an occupancy permit or municipal records.
- Keep these records with the unit’s file.
- If unsure, get advice before telling a tenant the guideline doesn’t apply.
Frequently asked questions
Which Ontario rental units are exempt from rent control?
Units first occupied for residential purposes on or after November 15, 2018.
How much can I raise rent on an exempt unit?
There is no guideline cap, but you still need 90 days’ written notice and can only raise rent once every 12 months.
Does a new basement apartment count as exempt?
If it was first occupied as a residence on or after November 15, 2018, it generally does. Keep proof of the date.
Do I still need to give 90 days’ notice?
Yes. The written notice requirement applies to exempt units too.
What if I’m not sure when the unit was first occupied?
Look for the first lease, occupancy permit or municipal records. Get advice before relying on the exemption.
About Robert Di Lisi
Robert is a paralegal licensed by the Law Society of Ontario and co-founder of Stonegate Legal Services, a landlord-only firm. He leads client intake and speaks at landlord seminars across the GTA. Like the rest of the team, he is a landlord himself.
Planning a rent increase?
We act only for landlords. Flat-fee pricing, quoted up front, and every hearing handled online.
Book your free 20-minute call →or call 416-937-2766We represent landlords across Ontario, including Toronto, Mississauga, Brampton, Hamilton, Ottawa, Vaughan, Markham, Oakville and London.
