Property Management in Ontario
Rent control in Ontario applies differently depending on when a rental unit was first occupied. Units first occupied for residential purposes before November 15, 2018 are subject to rent control — annual rent increases are limited to the Ontario Rent Increase Guideline set by the province each year. For 2025, this guideline is 2.5%.
Units first occupied for residential purposes on or after November 15, 2018 are exempt from rent control. For these units, landlords can increase rent by any amount with proper 90-day notice using an N1 form. This exemption was intended to stimulate new rental housing construction by allowing market rents on new supply.
Key Responsibilities and Best Practices
The guideline applies to increases for existing tenants. When a unit becomes vacant and a new tenant moves in, landlords can set any rent for the new tenant regardless of whether the unit is subject to rent control. This is called a vacancy decontrol provision — rent control applies to tenants, not units.
Applying a rent increase above the guideline for a rent-controlled unit requires filing an Above Guideline Increase (AGI) application with the Landlord and Tenant Board. AGI applications are justified by extraordinary capital expenditures, significant increases in municipal taxes or utilities, or security services. These applications require evidence and LTB approval.
How D&D Property Management Helps
The maximum allowable increase each year includes the guideline amount regardless of when in the year the increase takes effect. A landlord who missed the increase in January can still apply a full guideline increase at any point during the year, as long as 90 days' notice is provided.
D&D Property Management tracks rent control status and guideline amounts for all managed units, ensuring increases are applied correctly and legally. We prepare and serve N1 notices with precise amounts and timing to maintain full compliance.