Rent Control Laws in Ontario Explained

Rent Control Laws in Ontario effectively protect tenants in their rented accommodation from sudden or inordinate rent increases. It mandates how much a landlord is permitted to raise the rent each year. 

With rental prices in Ontario expected to continue rising through 2025, it is increasingly important to educate yourself on your rights and responsibilities as both a tenant and a landlord.

These rules clarify the limits on rent increases, including rent guidelines, exemptions, notification requirements, and dispute procedures. 

This guide provides a straightforward summary to help you understand precisely what is permitted and what is not when it comes to raising rents in Ontario.

What is Rent Control? 

Rent control is the amount landlords are legally allowed to raise the rent each year for qualifying rental units. The law exists to maintain rental housing affordability, ensuring that tenants do not experience unexpected financial burdens. 

When it comes to proven Rent Resourcing Act (RTA) regulations, landlords are only allowed to raise rent if it is permitted under the government-established provincial guideline, unless the landlord is granted a rent increase above the guideline (AGI). 

According to the RTA, any rent increase by a landlord requires a 90-day written notice. If a tenant does not receive notice, any rent increase after 90 days is null and void. Rent can only be raised once every 12 months. 

Local Observation: It is common for tenants to believe that all rental units are subject to rent control, but Ontario employs a mixed moderation model. 

This often confuses tenants living in many of the major cities in Ontario, such as Toronto and Ottawa, where many newer buildings are exempt from control. Understanding this rent increase model helps mitigate disputes with tenants.

Annual Rent Increase Guideline 2025 

Each year in Ontario, you will find out the government-mandated rent increase from Ontario’s official rent increase guideline. It relies on the Ontario Consumer Price Index (CPI), while allowing a ceiling, so that tenants are protected from excessive inflation increases. 

While this guide cannot specify the percentage for 2025 due to the lack of reference to any official notices, based on recent government-published data from previous years, it generally falls between 1% and 3%. Clicking on this link for updated rent increase percentages will be helpful. 

The 2025 guideline applies to all types of rental units, including:

• Houses
• Apartments
• Basement units
• Condominium units leased as rentals
• Multi-residential properties

It does not apply to:

• Above-guideline increases (capital repairs and substantial renovations)
• Units that are exempt from Rent Control Ontario
• Social and affordable housing displacement was created under separate rules

It’s worth briefly mentioning, as an example from an earlier Landlord and Tenant Board (LTB) that I sight-mentioned, that tenants successfully challenged rent increases that a landlord attempted to establish that were unrelated to capital improvements. 

This information illustrates how strictly the guideline is enforced when tenants suffer an illegal increase.

Exemptions from Rent Control

Not all units are subject to the Rent Control Laws in Ontario. We have the units and categories exempt from any rent-controlled legislation, which surprises most tenants:

1. Units that became first occupied after November 15, 2018

The “post-2018 exemption” is the primary reason tenants complain about excessive rent increases. And while these units are exempt from rent increases, they only require a 90-day notice, and a landlord may increase rents once every twelve (12) months.

2. Care homes and retirement residences

Amounts charged for accommodation may or may not be governed by Rent Control Laws in Ontario, but amounts charged for services, such as meals or nursing care, are not governed by Rent Control Ontario.

3. Social or subsidized housing

Separate rules and affordability policies govern social or subsidized housing.

Units in which the landlord and tenant (or children of the tenant) share the kitchen or bathroom

Often referred to as rooming units, these units do fall within the standard Rent control rules in Ontario. 

Competitive Advantage: Many guides fail to recognize the impact that different aliquots can have on the decision in disputes. 

In exempt units, the tenant typically considers the notice errors far more than the amount itself. The fact that this brings practical value to readers often absent from general editors is an excellent angle for the article.

Disputing Illegal Rent Increases

Illegal increases can occur when rent exceeds the guideline and the notice is incorrect, or when landlords mistakenly claim an exemption.

Step 1: Confirm the guideline and exemption position

Compare the rent increase amount to the Ontario rent guideline 2025. Then check if the building was occupied before or after November 15. 2018. 

Step 2: Check the notice

Examples of notice errors may include the absence of a date, an undeclared monthly amount, or failure to serve a 90-day notice. All these issues can result in the LTB dismissing the rent increase.

Step 3: Collect the notation

Tenants can collect the lease, payment receipts, notices, and/or any messages from the landlord. Having a well-organized file goes a long way in submission and presentation.

Step 4. File with the Landlord and Tenant Board

Tenants should file using LTB Form T1 or T2 to refer their dispute. The LTB decides after reviewing evidence submitted and hearsay. All decisions made in the LTB are lawful, and the process is subject to CPRA, not alternative dispute resolution. 

A real-life example: In Toronto, tenants were able to dispute a 7% increase because the landlord didn’t know or thought that the unit was exempt because of renovations. 

The Landlord and Tenant Board ruled that major repairs do not create an exemption. The date of occupancy is the only relevant date.

Paralegal Services for Rent Control and Ontario Issues

Many tenants and landlords rely on licensed paralegals for advice and support. Rent issues are often tied to deadlines, complex interpretations of the RTA, and various documentation.

Paralegals assist with:

• Reviewing rent increases for compliance with the law
• Confirming exemption status
• Preparing Landlord and Tenancy Board applications
• Representation for clients at a hearing
• Negotiation of settlement
• Consulting with tenants for refund eligibility

Having this professional assistance reduces the chances of making mistakes and can lead to better outcomes.

Conclusion

Rent Control Laws in Ontario help to achieve stability in an ever-changing rental market. Understanding whether a unit is controlled, exempt, or eligible for significant increases, or what that actually means, will save both tenants and landlords from costly misunderstandings.

With rent challenges on the rise across Ontario, tenants can protect themselves by staying informed of the issues. Learning the rules, reviewing all notices carefully, and seeking assistance early can help prevent disputes from arising.

Are you facing a rent-related issue? Contact our paralegal experts today.

FAQs

1) Are all rental units covered under rent control laws in Ontario?
No. Units that are first occupied after November 15, 2018, and specific categories of special housing are exempt.

2) How much can my landlord increase the rent in 2025? 

If a unit is not exempt, landlords must take into account the Ontario rent guidelines 2025 and apply a significant AGI (above guideline increase) if applicable. 

3) Can a landlord raise the rent without giving notice? 

No. Landlords must provide a 90-day written notice of rent increases, regardless of it being legal.

4) What should I do if I receive an illegal rent increase? 

If you notice an illegal increase, you can ask your landlord or property manager for clarification, compare it to the guidelines, and decide whether to dispute it with the LTB if the problem persists. 

5) Can I hire a paralegal rent dispute? 

Yes. You can retain a licensed paralegal to assist with serving notice of essential documents or attending LTB hearings related to rent disputes.