Rent control sounds reassuring. The words alone suggest a ceiling, a hard stop, a guarantee that your monthly payment cannot suddenly spiral out of reach. But as a recent Globe and Mail report highlighted, rent control in Ontario does not work the way most tenants assume it does, and the gaps in that protection can catch people completely off guard. For landlords across Central Ontario, understanding exactly where rent control applies and where it does not is just as important as it is for the tenants living in your properties.
At Blue Anchor, we manage long-term residential rentals across Belleville, Trenton, Quinte West, Brighton, Cobourg, Port Hope, Campbellford, Picton, and Oshawa. We field questions about rent increases from both landlords and tenants regularly, and the confusion around what rent control actually covers is one of the most common misconceptions we encounter. This post is meant to clear that up, honestly and plainly.
What Rent Control in Ontario Actually Covers
Ontario's rent control framework lives inside the Residential Tenancies Act (RTA, 2006). Under the RTA, most residential tenants are entitled to protection from rent increases that exceed the provincially set guideline. For increases taking effect in 2026, that guideline is 2.1 percent. For increases taking effect in 2027, it drops to 1.9 percent. Landlords who want to raise rent within those percentages must still give proper written notice using the correct form, and the increase can only happen once every 12 months.
That sounds like solid protection. And for tenants in older units with continuous tenancies, it generally is. But the Globe and Mail piece pointed to something that Ontario renters have been learning the hard way: a significant portion of the rental stock in this province is simply not covered by rent control at all, and even for units that are covered, there are legal mechanisms that allow landlords to apply for increases well above the guideline.
The Vacancy Decontrol Problem
Here is the single biggest gap in Ontario's rent control system. Units that were first occupied for residential purposes on or after November 15, 2018, are exempt from rent control entirely. This exemption was introduced under changes made several years ago, and it remains in place today. What it means in practice is that if you are renting a newer condo, a purpose-built rental apartment in a building that opened after that date, or any unit that was first used residentially after November 2018, your landlord can raise the rent to any amount they want between tenancies, and in some cases within a tenancy depending on the terms.
In markets like Oshawa, where significant new rental construction has come online over the past several years, a meaningful share of available units fall into this exempt category. The same applies in parts of Belleville and Quinte West where new builds have been added to the rental supply. Tenants moving into these units may not realize they have no guideline protection until they receive a notice of increase they were not expecting.
Even for older, rent-controlled units, vacancy decontrol applies between tenancies. When a tenant vacates a rent-controlled unit voluntarily, the landlord is free to set the rent at whatever the market will bear for the next tenant. The control only kicks back in once that new tenancy is established. This means the protection travels with the tenancy, not with the unit itself.
Above-Guideline Increases: The Legal Route to Higher Rents
Even tenants in fully rent-controlled units can face increases above the guideline. Ontario's rules allow landlords to apply to the Landlord and Tenant Board (LTB) for an above-guideline increase (AGI) under specific circumstances. These include extraordinary increases in operating costs like property taxes or utilities, capital expenditure projects that improve the building, or security service costs. If the LTB approves the application, the landlord can implement an increase that exceeds the annual guideline, sometimes significantly. For a detailed breakdown of how this process works, see our guide on above-guideline rent increases in Ontario.
AGI applications are not fast, and they are not guaranteed. But they are real, and tenants in older buildings sometimes receive notice of an approved AGI and find themselves facing an increase they did not anticipate. The Globe and Mail report reflects a broader pattern: the rent control system in Ontario is more porous than its name implies, and both tenants and landlords need to understand the actual rules rather than the assumed ones.
At Blue Anchor, we make sure the landlords we work with understand their rights and obligations around rent increases before they ever issue a notice. Getting this wrong is not just a compliance problem. It can damage the landlord-tenant relationship and in some cases expose a landlord to LTB proceedings.
What Changed in September 2026 and Why It Matters
Ontario's rental rules shifted meaningfully on September 21, 2026, when two pieces of legislation came into force simultaneously. The changes introduced under the Fighting Delays, Building Faster Act, 2025 (Bill 60, Schedule 12) and the Helping Homebuyers, Protecting Tenants Act, 2023 (Bill 97) landed on the same day, which has caused a fair amount of confusion about which bill does what.
Under Bill 60, the notice period on an N4 (notice to end a tenancy for non-payment of rent) dropped from 14 days to 7 days. That is a significant operational change for landlords. Our post on Ontario Bill 60 and the shortened N4 notice period covers exactly what that change means in practice. Bill 60 also introduced a written test for persistent late payment: if a tenant pays rent more than seven days late on three or more occasions within any six-month period, a landlord has grounds to pursue that pattern as a separate issue. Additionally, an individual landlord issuing an N12 for own-use now has an optional route of giving 120 days notice with no compensation month required, as an alternative to the standard approach.
Under Bill 97, there are new notification duties related to a tenant's right of first refusal when a unit is being renovated. These are meaningful protections for tenants and meaningful obligations for landlords.
None of these changes directly alter the rent control guideline percentages, but they change the procedural environment around tenancy endings, which is often where rent control gaps become most visible. A landlord who ends a tenancy and re-rents at market rate is operating within the law in many cases, but doing it improperly can trigger LTB proceedings. Ontario's rules in this area are detailed, and landlords should confirm current requirements with the LTB or a licensed paralegal before taking action.
What Tenants Can Do to Protect Themselves
If you are a tenant, the most important thing you can do is find out whether your unit is subject to rent control before you sign a lease. Ask the landlord directly when the unit was first occupied for residential purposes. If it was after November 15, 2018, you do not have guideline protection. That does not mean you should not rent the unit, but it does mean you need to factor potential future increases into your financial planning and understand that your landlord has more flexibility on pricing than they would with an older unit.
If your unit is rent-controlled and you receive a notice of increase, verify that it does not exceed the applicable guideline for the year the increase takes effect. For 2026 increases, that ceiling is 2.1 percent. For 2027, it is 1.9 percent. If the notice exceeds those amounts and your landlord does not have an approved AGI order, you have grounds to challenge it at the LTB. You can also review the Ontario 2027 rent increase guideline to confirm the exact figure that applies to your situation.
Tenants who rent through Blue Anchor also have access to our renters insurance program, which provides one million dollars in liability coverage and one hundred thousand dollars in pet liability coverage for approximately thirty to forty-two dollars per month through our insurance partner. While that does not directly address rent increases, having proper insurance in place is part of being a financially prepared tenant, and it protects both the tenant and the landlord from liability exposure.
What Landlords Should Take Away From This
The Globe and Mail piece is a useful reminder that tenants are paying more attention to rent control rules than they used to, and that misunderstandings cut in both directions. Landlords who issue improper increase notices, fail to use the correct forms, or do not give adequate notice can face LTB applications and orders that are time-consuming and costly to deal with.
In our experience managing properties across Cobourg, Port Hope, and Belleville, the landlords who avoid LTB trouble are almost always the ones who treat compliance as a baseline, not an afterthought. That means issuing rent increase notices on time, using the right forms, tracking the 12-month minimum between increases, and understanding whether their specific unit is subject to the guideline or not.
It also means communicating clearly with tenants. A tenant who understands why a rent increase is happening, receives proper written notice well in advance, and feels respected throughout the process is far less likely to escalate to the LTB than one who feels blindsided. That is not just good ethics. It is practical property management.
Frequently Asked Questions
Is my rental unit in Ontario covered by rent control?
It depends on when the unit was first occupied for residential purposes. If it was first occupied before November 15, 2018, it is generally covered by rent control under the RTA. If it was first occupied on or after that date, it is exempt, and your landlord can raise the rent beyond the annual guideline. When in doubt, ask your landlord directly and confirm in writing.
How much can my landlord raise the rent in 2026?
For rent increases taking effect in 2026, the Ontario guideline is 2.1 percent. For increases taking effect in 2027, the guideline is 1.9 percent. These percentages apply only to units that are subject to rent control. Units exempt from rent control have no guideline ceiling.
Can a landlord raise rent more than the guideline even on a controlled unit?
Yes, in certain circumstances. A landlord can apply to the LTB for an above-guideline increase if they have experienced extraordinary increases in operating costs or have undertaken qualifying capital improvements. If the LTB approves the application, the landlord can implement an increase above the guideline. Tenants have the right to participate in that process and respond to the application.
What happens to rent control when a tenant moves out?
When a tenant voluntarily vacates a rent-controlled unit, the landlord can reset the rent to market rate for the next tenant. Rent control then applies again once the new tenancy is established. This is called vacancy decontrol, and it is one of the main reasons why the rent on a controlled unit can jump significantly between tenants even though the unit itself is technically subject to the guideline.
What should I do if I receive a rent increase notice I think is too high?
First, check whether your unit is subject to rent control and confirm the applicable guideline for the year the increase takes effect. If the notice exceeds the guideline and you believe no AGI has been approved, you can file an application with the LTB to dispute it. It is worth consulting with a licensed paralegal or contacting the LTB directly to understand your options. Do not simply ignore the notice, as that can complicate your position later.
Working With a Property Manager Who Knows the Rules
Rent control in Ontario is not the simple blanket protection many people assume it is. There are real gaps, legal exceptions, and procedural requirements that affect both tenants and landlords, and those gaps have real financial consequences. The Globe and Mail report reflects what we see in the field: tenants are surprised by increases they did not expect, and landlords sometimes issue those increases without fully understanding the rules that apply to their specific situation.
At Blue Anchor, our Standard plan starts at 5 percent of collected rent with a fifty dollar minimum on occupied units and nothing while the unit is vacant. Our Platinum plan is two hundred ninety-five dollars per unit per month and includes inspections, notices, and LTB filings. Every fee is published on our pricing page, and we never charge a lease renewal fee on either plan. If you are a landlord in Central Ontario who wants to handle rent increases, tenant communications, and LTB compliance correctly, we are here to help. Reach out to our team to learn more about how we work.
