Is My Unit Rent Controlled in Ontario in 2027?

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 12 min read — Most Ontario units are capped at the 1.9% guideline in 2027, but units first occupied after November 15, 2018 are not. Here is how to tell.

This guide is for Ontario tenants who want to know whether their rent can only rise by the guideline in 2027, and for landlords and condo investors who need to know which rules apply to the unit they own or plan to buy. You will get the legal test, a quick checklist, what 1.9% means in dollars, and how to prove or challenge an exemption.

What does rent control mean in Ontario in 2027?

In Ontario, “rent control” means the rent increase guideline. For 2027 the guideline is 1.9%. It is the most a landlord can raise a sitting tenant’s rent in a year without approval from the Landlord and Tenant Board (LTB). The province sets it from the Ontario Consumer Price Index, and section 120 of the Residential Tenancies Act, 2006 (RTA) caps it at 2.5% no matter how high inflation runs.

Three rules work together:

• The cap: no more than the guideline for most units (RTA s. 120).
• The 12-month rule: at least 12 months since the last increase or since the tenant moved in (s. 119).
• The 90-day notice: written notice on a Board-approved form at least 90 days before the increase. An increase given without proper notice is void (s. 116).

The guideline applies during a tenancy. It does not limit the rent a landlord sets for a brand-new tenant, which I cover below.

How do I know if my unit is rent controlled?

Most units are. Ontario’s own page lists rented houses, apartments, basement apartments and condos as covered by the guideline. The main exceptions are new units first occupied after November 15, 2018, and some types of housing that follow different rules. Use this table as a first check.

Source: Residential Tenancies Act, 2006, ss. 6.1, 7, 8 and 120 (e-Laws consolidation, September 2026); Ontario, “Residential rent increases” (updated June 23, 2026).

Two points catch people. First, the date that matters is when the building (or addition) was first occupied for residential purposes, not when you signed your lease. A tenant who moves into a 1970s tower in 2027 is still covered by rent control. Second, an exempt unit is not exempt from everything. The 12-month rule and 90-day notice still apply.

What is the November 15, 2018 rent control rule?

Ontario changed the law in late 2018 to encourage new rental supply. Section 6.1(2) of the RTA switches off the guideline (and the above-guideline increase rules) for a unit in a building where no part of the building was occupied for residential purposes on or before November 15, 2018.

For a condo tower, the key date is usually when the first buyers or tenants moved in, which in Ontario is often the interim occupancy period before the condo is registered. If the first residents moved in during 2019 or later, every unit in that building is exempt. If even part of the building was occupied on or before November 15, 2018, the building test fails.

The same test applies to an addition. A new wing built onto an older apartment building can be exempt, while the original building stays rent controlled.

What about tenancies that started before the rule?

Section 6.1(4) says the exemption does not apply to a tenancy whose agreement was signed on or before November 15, 2018. Section 6.1(5) limits that to the same tenancy only. In practice this affects very few tenants today, but it is the reason the law reads the way it does.

Are basement apartments and second units rent controlled?

Older ones usually are. Newer ones often are not. Section 6.1(3) exempts a unit in a detached house, semi or row house only if all of these are true:

1. The house had no more than two residential units on or at any time before November 15, 2018.
2. The unit has its own bathroom and kitchen, its own entrance, and a door that locks from the inside, with at least one door that locks from the outside.
3. It became a self-contained unit after November 15, 2018.
4. Either the owner lived in another unit in the house when it was first occupied, or it was built in space that was unfinished before (such as a bare basement or attic).

So a basement apartment finished in 2021 by an owner who lives upstairs is normally exempt. A basement apartment that has been rented since 2012 is normally controlled, even if it was renovated later. Toronto now permits up to four units as of right across the city, so more homeowners are adding units, and this test is worth knowing before you set the rent.

Which other rental units do not follow the guideline?

Ontario lists a few groups that sit outside the guideline or follow separate rules:

• Community and social housing. Section 7 of the RTA removes the guideline for units owned or operated by government bodies, many non-profit housing projects, and non-member units in non-profit co-ops. Rent-geared-to-income units follow income rules (s. 8).
• Long-term care homes and commercial properties. These are not covered by the guideline.
• Care homes such as retirement residences. The guideline applies only to the rent portion, not to services like meals or nursing.

Separately, some housing is outside the RTA entirely, for example when a tenant shares a kitchen or bathroom with the owner or the owner’s close family. If that is your set-up, the guideline question does not arise in the usual way, so get advice on whether the Act applies at all.

Can a landlord charge a new tenant any rent in Ontario?

Yes. Ontario has what is often called vacancy decontrol. Section 113 of the RTA says the lawful rent for a new tenant is the rent first charged to that tenant. When a unit turns over, the landlord and the new tenant can agree on any amount, and the guideline then applies to that new starting rent.

This is why two identical units in the same rent-controlled building can rent for very different amounts. The one with a long-term tenant has only moved up by the guideline each year. The other was re-let at market rent. For more on this, see my guide on whether a landlord can raise the rent for a new tenant.

How much can my rent go up in 2027?

If your unit is rent controlled, the most it can rise in 2027 is 1.9%, unless the LTB approves an above-guideline increase. Here is what that looks like on typical Toronto rents.

Source: TRREB Rental Market Report, Q2 2026 (average lease rates; the Q3 2026 report was not posted when this was written); Rentals.ca and Urbanation National Rent Report, October 2026 (average asking rent). Increases calculated at the 2027 guideline of 1.9%.

The guideline has moved a lot over the past decade. Ontario’s published history shows 1.8% for 2018 and 2019, 2.2% for 2020, a legislated freeze at 0% for 2021, 1.2% for 2022, the 2.5% cap for 2023, 2024 and 2025, 2.1% for 2026 and 1.9% for 2027. A rent-controlled tenant who moved in years ago may now be paying well below what a new tenant would pay for the same unit.

If my unit is exempt, is there any limit on rent increases?

There is no percentage cap, but there are still rules. The landlord can raise the rent only once every 12 months and must give at least 90 days’ written notice on the Board’s form. If the landlord skips the notice, the increase is void and a new notice is needed. The 2021 rent freeze did apply to post-2018 units too, which shows the province can change the rules by law.

In practice, the market sets the ceiling. Rentals.ca and Urbanation reported that Toronto’s average asking rent for apartments and condos rose 1.6% year over year in October 2026, the first annual gain after 32 months of declines. Over the same period they reported declines in Oakville, Markham, Vaughan and Mississauga. A landlord who asks for far more than comparable units risks a vacancy.

How do I check or prove that a unit is exempt from rent control?

The burden is on the landlord. Section 6.1(6) of the RTA says that if the exemption is disputed at the LTB, the landlord must prove it. Ontario suggests that landlords add a term in section 15 of the standard lease stating that the unit is exempt and keep the records that prove it. Section 15 is where the standard lease allows extra terms, which must be attached to the lease in plain language.

For a new building or addition

• Building permits, permit applications and plans
• Occupancy permits
• New home warranty documents
• Documents from the builder

For a new unit in an existing house

• Builder documents or contractor invoices
• Before and after photographs
• Building permits, applications and plans

Tenants can ask the landlord for these records, and either side can contact the LTB to ask whether a unit is exempt. For a condo, the year the building opened is often public, but “opened” is not always the same as “first occupied,” so rely on documents, not a listing description.

What can I do if my rent increase breaks the rules?

If you think your unit is controlled and the increase is above 1.9%, or the notice was late or missing, raise it with your landlord in writing first. If that fails, you can apply to the LTB. Ontario says you can dispute an improper increase within 12 months after the amount was first charged. Under section 135, a tenant can also ask the Board to order the landlord to repay money collected in breach of the Act.

Landlords who face rising costs have a legal route too: an above-guideline increase application for eligible capital work or large jumps in municipal taxes. My guide on above-guideline rent increases explains the grounds, and my post on illegal rent increases in Ontario walks through the tenant side.

What to do next

1. Find out when your building, addition or basement unit was first occupied as a home. That single date decides most cases.
2. Check your lease, especially section 15, for any statement that the unit is exempt, and ask for the records behind it.
3. Compare any 2027 increase notice with the 1.9% guideline, the 12-month rule and the 90-day notice period.
4. If something looks wrong, put your concern in writing and apply to the LTB within 12 months of the first increased payment.
5. If you are buying or selling a rented unit, get the first occupancy date and rent history before you set a price. I am happy to run those numbers with you anywhere in the GTA.

Frequently asked questions

Sources

• Residential rent increases (Government of Ontario)
• Residential Tenancies Act, 2006, S.O. 2006, c. 17 (e-Laws)
• TRREB Rental Market Report, Q2 2026
• Rentals.ca and Urbanation National Rent Report, October 2026
• Guide to Ontario’s standard lease (Government of Ontario)

Related reading

• Can My Landlord Enter Without Notice in Ontario?
• Can a Landlord Evict You Without Going to the LTB in Ontario?
• Can My Landlord Raise the Rent Every Year in Ontario? 2027 Rules
• Can a Landlord Put Security Cameras in or Outside a Rental in Ontario?