When it comes to renting in Ontario, “rent control” is a term that frequently pops up. But what does it mean, how does it work, and does it apply to your place? Here’s a clear breakdown of the essential details:

• Rent control applies to any residence, be it an apartment, house, condo, basement, or mobile home, occupied since before Nov. 15, 2018. It doesn’t freeze rent but regulates it, allowing an annual increase determined by the provincial government.
• In 2023 and 2024, the maximum annual rent increase was capped at 2.5%. For instance, if you rented a $1,500 apartment, a maximum increase would amount to $37.50, making your new monthly rent $1,537.50.

However, it’s not as simple as it seems, according to Bruno Dobrusin from the York South Weston Tenant Union. There are nuances to consider, such as “above guideline rent increase” (AGI), where landlords can seek approval to increase rent by an additional three percent yearly beyond the stipulated 2.5%.

To pursue an AGI, landlords must justify reasons like significant increases in city taxes, newly incurred security costs, or renovation expenses. Yet, these applications can often lead to frustrations, especially when landlords prioritize balcony renovations instead of addressing tenants’ critical repair concerns.

Addressing Rental Unit Specifics:

• If you’ve lived in your unit since before 2018, yes, your landlord can raise the rent within the controlled limits or seek an AGI.
• If you’re moving into an older apartment, it’s rent-controlled, but “vacancy decontrol” might mean you won’t enjoy the same rental rate as the previous tenant. Vacancy decontrol allows landlords to charge market-level rents for vacant units.
• If you’re moving into a rental unit built after Nov. 15, 2018, it’s not subject to provincial rent control.
• Landlords can increase your rent every 12 months, needing to provide at least 90 days’ notice.
• Disputes regarding rent control can be taken to the Landlord and Tenant Board, although a substantial backlog currently affects its efficiency.

Understanding these aspects of rent control is vital for both renters and landlords to navigate Ontario’s rental landscape effectively.

In May, the ombudsman for Ontario reported a backlog at the Landlord and Tenant Board exceeding 38,000 applications.