Ontario's regulation that limits annual rent increases for most residential tenancies to the provincial guideline amount, which is set each year based on the Consumer Price Index. As of current rules, units first occupied after November 15, 2018 are exempt from rent control, meaning landlords can raise rent by any amount with proper notice. For rent-controlled units, landlords can apply for above-guideline increases for capital expenditures or significant operating cost increases, but these must be approved by the Landlord and Tenant Board.
Why It Matters
Rent control has a major impact on both landlords and tenants in the GTA. For tenants in controlled units, it provides predictability and limits annual increases to small amounts. For landlords, it means rental income may not keep pace with rising costs. The 2018 exemption has created a two-tier market -- knowing whether a unit is rent-controlled or exempt significantly affects its investment value and tenant affordability.
Real-World Example
You are renting a one-bedroom apartment near Danforth and Pape that was first occupied in 2005. Your current rent is $1,800 per month. Under Ontario's rent control rules, the 2025 provincial guideline limits your annual increase to 2.5%, meaning your landlord can raise your rent to a maximum of $1,845 per month with proper 90-day written notice using an N1 form. Your neighbour in a newer building completed in 2020, however, is not covered by rent control -- her landlord raised rent from $2,100 to $2,500 in a single year, a 19% increase that is perfectly legal under the post-November 2018 exemption.
Ontario & GTA Context
Ontario's rent control applies to most residential rental units first occupied before November 15, 2018. The annual rent increase guideline is set by the province based on the Ontario Consumer Price Index, capped at 2.5%. Units first occupied after November 15, 2018 are exempt from the guideline, allowing landlords to increase rent by any amount with 90 days written notice. Landlords of controlled units can apply to the Landlord and Tenant Board for above-guideline increases for capital expenditures or extraordinary operating cost increases, but these applications require LTB approval.
How It Works in Practice
If you are a tenant, check when your building was first occupied to know whether you are rent-controlled. If you are a landlord or investor, the rent control status of a unit significantly affects its long-term income potential. Rent-controlled units may fall below market rent over time, while exempt units allow you to adjust rent to market levels at each renewal.
Common Questions
Is my Toronto rental unit rent-controlled?▾
How much can my landlord raise rent in Ontario?▾
Can a landlord raise rent more than the guideline in Ontario?▾
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