One of the most significant changes to Ontario’s landlord-tenant framework in recent years is the rent control exemption for units first occupied on or after November 15, 2018. If your unit qualifies, you are not bound by the annual rent increase guideline — but there are still rules and nuances to understand.
Which Units Are Exempt
Units that were first occupied for residential purposes on or after November 15, 2018 are exempt from rent control under Ontario’s current rules. This applies to new builds, new secondary suites, and conversions that were first used as residential rentals after that date. The date of construction is less important than the date the unit was first occupied residentially.
What Exempt Means in Practice
For a rent-control-exempt unit, the landlord can increase rent above the annual guideline percentage without filing an above-guideline increase application. You can negotiate any rent amount with a new tenant and raise rent by any amount with proper notice once per 12-month period. The 90-day written notice requirement still applies — the exemption affects the amount, not the process.
You Still Need to Give Proper Notice
Even for exempt units, you must use the N1 form and provide at least 90 days’ written notice before a rent increase takes effect. You still cannot raise rent more than once every 12 months per tenant. The exemption applies to the amount only — all procedural requirements remain in place.
How to Confirm Your Unit Is Exempt
The key question is when the unit was first occupied for residential purposes. If you have records showing the unit’s first occupancy date — an original lease, a building permit completion record, or municipal records — these can establish the date. If you are unsure, consult a paralegal before representing to a tenant that no guideline applies.
What Comes Next
Stonegate advises Ontario landlords on rent control exemptions and increase procedures. Book a free call at https://calendly.com/stonegatelegalservices/20min.
▶ Watch: Rent Increases in Ontario Explained for Landlords
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