Is my Etobicoke rental rent-controlled? It depends on one date: 15 November 2018. If no part of your building was occupied for residential purposes on or before that date, the annual rent increase guideline does not apply to your unit and your landlord can raise the rent by any amount. If any part of it was occupied on or before that date, you are covered and the 2027 cap is 1.9%.
Exempt does not mean unprotected. Section 6.1 switches off nine sections of the Act, all of them about the size of a rent increase. It does not touch the 90 days’ written notice requirement, the once-every-12-months rule, eviction law, maintenance obligations, entry rules or your deposit. Your landlord must still use a Landlord and Tenant Board form, and a badly served increase is still void.
And the burden is not on you. Section 6.1(6) says plainly that where the exemption is in issue, the onus is on the landlord to prove it applies.
What is the 15 November 2018 rent control exemption?
In late 2018 Ontario removed rent control from new rental supply. The change was made by the Restoring Trust, Transparency and Accountability Act, 2018, which added section 6.1 to the Residential Tenancies Act, 2006. It came into force on 6 December 2018 and it uses 15 November 2018 as the cut-off.
Ontario.ca states the rule in one sentence: “New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after November 15, 2018 are exempt from rent control.”
That sentence is accurate but it is a summary, and the word doing the most work in it is “most.” The statute is considerably narrower than the summary, particularly for basement apartments. Below is what section 6.1 actually says.
Test one: whole buildings and additions (s.6.1(2))
Section 6.1(2) exempts a unit where either of these is true:
- The unit is in a building, mobile home park or land lease community and no part of that building, park or community was occupied for residential purposes on or before 15 November 2018; or
- The unit is entirely inside an addition to a building, and no part of that addition was occupied for residential purposes on or before 15 November 2018.
Two words in there decide most Etobicoke cases.
“Occupied,” not “built.” The test is first residential occupancy, not the construction date, the permit date or the registration date. A tower topped off in 2017 but not occupied until 2019 is exempt. There is no reference to construction anywhere in s.6.1(2).
“No part.” If any part of the building was occupied for residential purposes on or before 15 November 2018, the exemption fails for every unit in it — including units on floors finished years later. This is why phased buildings and conversions need checking rather than assuming.
Test two: new units in existing houses (s.6.1(3))
This is the “basement apartment” limb, and it is where the ontario.ca summary is most likely to mislead you. All four of the following must be true. Not most of them. All four.
| # | Requirement in s.6.1(3) | What it rules out |
|---|---|---|
| 1 | The unit is in a detached, semi-detached or row house that contained not more than two residential units on or at any time before 15 November 2018 | A house that was already a legal triplex in 2018 |
| 2 | The unit has its own bathroom and kitchen, one or more entrances, a door at each entrance that can be secured from inside, and at least one of those doors lockable from outside | A room rental, or a “suite” sharing the main kitchen |
| 3 | The unit became such a self-contained unit after 15 November 2018 | A basement apartment that already existed in 2018 and was merely renovated |
| 4 | Either the owner lived in another unit in the house when the new unit was first occupied, or the new unit was created in space that was unfinished immediately beforehand | An investor-owned house where a finished rec room was converted into a suite |
What the exemption actually switches off — and what it does not
Section 6.1 is a closed list. It names the sections that stop applying, and everything else in the Act carries on untouched. This table is the single most useful thing on this page.
| Protection | Section | Exempt unit? |
|---|---|---|
| Cap on the size of the increase (the guideline) | s.120 | Gone |
| Above-guideline increase machinery (AGI) | s.126, s.127 | Gone (not needed) |
| Agreements to increase above the guideline | s.121, s.122 | Gone |
| Automatic rent reductions for tax or capital changes | s.129, s.131, s.132, s.133 | Gone |
| 90 days’ written notice on a Board form | s.116 | Still applies |
| Increase is void without proper notice | s.116(4) | Still applies |
| Only one increase every 12 months | s.119 | Still applies |
| Rent deposit capped at one month, plus annual interest | s.106 | Still applies |
| All eviction law, notices and compensation | Part V (ss.37–90) | Still applies |
| Landlord must repair and maintain | s.20 | Still applies |
| Vital services cannot be withheld | s.21 | Still applies |
| Entry rules and 24 hours’ notice | ss.25–27 | Still applies |
| No harassment or substantial interference | s.22, s.23 | Still applies |
The Landlord and Tenant Board’s own guide puts it in one line: “The landlord must still give at least 90 days’ notice in writing of any rent increase using the proper form but there is no limit on the size of the rent increase.”
The takeaway
“Not rent-controlled” is not the same as “not covered by the Act.” An exempt unit loses the ceiling on the increase and nothing else. If your landlord in an exempt building hands you a rent increase on a letter, or gives you 60 days instead of 90, or raises it twice in a year, that increase is just as void as it would be in a 1970s walk-up.
How do I find out whether my own Etobicoke unit is exempt?
Start with the building, not the unit. The question is when the building was first occupied for residential purposes, and there are four practical ways to establish it.
- Ask the landlord in writing, and ask for the proof. Section 6.1(6) puts the onus on them. Ontario.ca tells landlords to keep building permits, permit applications and plans, occupancy permits, new home warranty documents and documents from the builder for exactly this purpose. A landlord who cannot produce any of it has a problem, not you.
- Check your lease. Ontario’s guidance suggests landlords add a term under section 15 of the standard lease stating that the unit is exempt. If your lease says nothing about it, that is not proof either way, but it is worth noting.
- Check the condominium registration and first occupancy dates. For a condo, interim occupancy of the first units is the event that matters, and it is usually well documented.
- Ask the Landlord and Tenant Board. 1-888-332-3234. They will not rule on your unit over the phone, but they will explain the test.
For a house with a basement suite, the questions are different: when did the unit become self-contained, was the space finished or unfinished immediately before, and did the owner live in the house when it was first occupied?
Turnover is a different rule, and it catches everybody
People often confuse the November 2018 exemption with vacancy decontrol. They are separate, and the second one applies to every rental unit in Ontario regardless of age.
Section 113 says the lawful rent for the first rental period of a new tenancy is simply “the rent first charged to the tenant.” When a tenant moves out, the landlord can list the unit at whatever the market will bear. That is a one-time reset at the start of a tenancy, not an ongoing exemption. Once the new tenancy begins, the guideline, the 90-day rule and the 12-month rule all apply again to that tenant — unless the unit is separately exempt under s.6.1.
| s.6.1 exemption | s.113 turnover | |
|---|---|---|
| Applies to | Units first occupied after 15 Nov 2018 (and qualifying new units in houses) | Every rental unit in Ontario |
| When it operates | Continuously, for the life of the unit | Once, at the start of each new tenancy |
| Effect | No cap on increases during the tenancy | Sets the opening rent for a new tenant |
| 90-day notice still required? | Yes | Not applicable — this is not an increase |
Two situations that are not section 6.1 at all
Sharing a kitchen or bathroom with the owner. Under s.5(i), where the occupant must share a bathroom or kitchen with the owner, or the owner’s spouse, child or parent, and that person lives in the building, the Residential Tenancies Act does not apply at all. Not the guideline, not the notice rules, not the LTB. That is a far bigger deal than a rent-control exemption and it is routinely confused with one.
Community housing, long-term care and commercial. Ontario.ca lists these separately as outside the guideline. Long-term care homes are excluded from the whole Act by s.5(e). Care homes and retirement homes are inside the Act, and the guideline applies to the rent portion of the bill but not to services like nursing, food or cleaning.
If you are a landlord of an exempt unit
Three things worth getting right, because the exemption does not forgive any of them.
- Keep the proof. You carry the burden under s.6.1(6). Occupancy permit, first occupancy correspondence, builder documents — keep a folder. Producing it a year into a dispute is much harder than filing it now.
- Use a Board-approved form and give 90 days. Section 116 applies to you in full and s.116(4) makes a defective increase void. Note that the N1’s own instructions direct landlords of units exempt from the rent-limiting rules to Form N2 instead — but those instructions were written in 2015, before this exemption existed, and the Board has published nothing since to settle the point. Call the Board and ask rather than guessing.
- Pay the deposit interest anyway. Section 106(6) is not exempted. Interest on the last month’s rent deposit is payable annually at the guideline rate — 1.9% for payments falling due in 2027 — even though the guideline does not cap what you can charge.
Not sure whether your building is exempt?
Tell me the building and the unit type and I will help you track down the first-occupancy record — and if you are a landlord thinking about what the unit is worth to sell rather than to hold, I will give you that read too. No pitch, no obligation.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Reviewed personally and answered within 24 hours. I never share, sell or distribute your information.
Frequently asked questions
Is my unit rent controlled in Ontario?
It is, unless it falls inside section 6.1 of the Residential Tenancies Act, 2006. The main test is whether any part of your building was occupied for residential purposes on or before 15 November 2018. If it was, you are covered and the 2027 guideline of 1.9% caps your increase. If no part of it was occupied by that date, the guideline does not apply and there is no limit on the size of the increase — though the 90-day notice and once-a-year rules still do.
Are new buildings exempt from rent control in Ontario?
Yes, if no part of the building was occupied for residential purposes on or before 15 November 2018. The test in s.6.1(2) is first residential occupancy, not the construction or permit date, and it uses the words “no part” — so occupancy of any portion of the building by that date defeats the exemption for every unit in it.
Can my landlord increase my rent more than the guideline in Ontario?
Only in three situations: the unit is exempt under s.6.1; the Landlord and Tenant Board has granted an above-guideline increase on a Form L5 application under s.126; or you have signed a Form N10 agreement under s.121 in exchange for a capital expenditure or a new service. Outside those, an increase above the guideline is not lawful.
Am I covered by rent control if I live in a new basement apartment?
Possibly. Section 6.1(3) has four cumulative requirements, and the one most often missed is the fourth: either the owner must have lived in another unit in the house when your unit was first occupied, or your unit must have been built in space that was unfinished immediately beforehand. A suite carved out of an already-finished basement in an investor-owned house does not qualify, even if it was created after November 2018.
Who has to prove that a unit is exempt from rent control?
The landlord. Section 6.1(6) states that in an application to the Board where the exemption is at issue, “the onus is on the landlord to prove that the subsection applies.” Ontario.ca advises landlords to keep building permits, occupancy permits, new home warranty documents and builder documents for this purpose.
Does my landlord still need to give 90 days notice if my unit is exempt from rent control?
Yes. Section 116 is not among the sections switched off by s.6.1. The landlord must give at least 90 days’ written notice on a form approved by the Landlord and Tenant Board, and under s.116(4) an increase given without that notice is void. The 12-month rule in s.119 also still applies.
Is vacancy decontrol the same as the November 2018 exemption?
No. Vacancy decontrol under s.113 lets a landlord set any rent for a new tenant at the start of a new tenancy, and it applies to every unit in Ontario of any age. It is a one-time reset. The s.6.1 exemption removes the cap for the whole life of the unit, including during a sitting tenancy.
Sources
- Residential Tenancies Act, 2006, S.O. 2006, c. 17 (e-Laws). Section 6.1 in full, plus sections 5, 20, 21, 106, 113, 116, 119, 120, 121 and 126. Consolidation current from 1 July 2026; accessed 10 August 2026.
- Government of Ontario — Residential rent increases. The exemption wording, the list of records landlords should keep, the section 15 lease term suggestion, and the 2027 guideline of 1.9%. Page updated 23 June 2026.
- Landlord and Tenant Board — A Guide to the Residential Tenancies Act. Confirms that exempt units still require 90 days’ notice on the proper form.
- Landlord and Tenant Board — Forms. Forms N1, N2 and N10 and their instructions.
Related reading
- Ontario’s 2027 rent increase guideline is 1.9% — N1 dates and the math
- The Etobicoke rental market: a guide for landlords and tenants
- The Ontario LTB forms guide — which form does what
- Buying an Etobicoke condo with a tenant in place
- Does an Etobicoke investment condo cash flow in 2026?
Looking at Etobicoke more broadly? Start with my Etobicoke community guide — the neighbourhoods, what each pocket is like, and where they sit relative to one another.
About the author — Jatin Dua, Etobicoke real estate agent
I am Jatin Dua, a Realtor with RE/MAX Quantum Realty, working out of 799 The Queensway in Etobicoke. Almost every new building I sell in falls on one side or the other of the November 2018 line, and I have watched both tenants and landlords get it wrong in ways that cost them. The rule is knowable; it is just written badly.
Reach me at connect@jatindua.com or 437-987-1925.