This means that if you move into an apartment, condo, or basement unit that was first tenanted as a residential space after the amendment of the Residential Tenancies Act, 2006 (RTA), the landlord does not have a limit on how much they can raise the rent to. Although landlords of these entities do not have to follow the rent increase guidelines, they still have to abide by the provincial rules for increasing rent.

This exemption applies to:

• Apartment additions to existing buildings or homes
• New basement apartments
• Mobile home parks and land lease community

Rules For Increasing Rent

The landlord must give at least 90 days of proper written notice of the rent increase before it takes effect, and can only increase rent once in a 12-month period. In most cases, the rent for a residential unit can be increased 12 months after:

• The last legal rent increase (including assignments)
• The start date of tenancy

Landlord Tenant Board Rent Increase Forms

Use the forms available from the Landlord Tenant Board to give proper notice. Don’t forget, if you do not give proper notice, your tenant can dispute it within 12 months after the amount was first changed.

Learn more about Rent Increase Guidelines in Ontario

Resolving Issues About Rent Control

If there are any concerns regarding the eligibility of a residential unit’s exemption from rent control, landlords and tenants can contact the Landlord and Tenant Board. 

To prevent conflict about whether a residential space is exempt from the provincial rent increase guidelines, landlords may want to keep these documents handy:

• Building permits, applications, and plans
• Occupancy permits
• New home warranty documents
• Documents and invoices from the contractor
• Before and after pictures of the property