In This Article:
- Ontario's 2025 Rent Increase Guideline (and What Changed for 2026)
- Bill 60: The Fighting Delays, Building Faster Act
- Eviction Process Updates and LTB Backlogs
- Renovictions, the N13, and What Landlords Must Prove
- Tenancy Agreements, Notice Periods, and Form Changes
- What This Means for Central Ontario Landlords Specifically
- Frequently Asked Questions
- Final Thoughts
Ontario's rental rules shifted meaningfully in 2025, and if you own a residential rental property in Belleville, Cobourg, Oshawa, Trenton, Picton, or anywhere else in Central Ontario, staying current is not optional. The Residential Tenancies Act (RTA) has always been one of the more tenant-protective pieces of legislation in Canada, and recent amendments have added new layers of complexity for landlords who are trying to run a compliant, profitable rental.
At Blue Anchor, we manage long-term residential rentals across Central Ontario, and we field questions about these changes constantly. Landlords want to know: Can I raise rent? What happens if my tenant stops paying? What does Bill 60 actually do? The short answer is that 2025 brought real changes to rent increase caps, eviction procedures, and tenant protections, and the rules heading into 2026 tighten things further. This article breaks it all down in plain language.
We want to be clear upfront: this article is for general informational purposes and does not constitute legal advice. For matters involving the Landlord and Tenant Board (LTB) or specific tenancy disputes, we recommend consulting a paralegal or lawyer licensed in Ontario.
Ontario's 2025 Rent Increase Guideline (and What Changed for 2026)
For 2025, Ontario's official rent increase guideline was set at 2.5%. This cap applies to most private residential rental units covered under the RTA, meaning landlords could raise rent by a maximum of 2.5% without seeking approval from the Landlord and Tenant Board. Looking ahead, the 2026 guideline dropped to 2.1%, which reflects easing inflation figures but still represents a real constraint for landlords dealing with rising insurance premiums, maintenance costs, and property taxes.
The mechanics of a lawful rent increase have not changed, but they are worth reviewing. A landlord must give at least 90 days written notice before a rent increase takes effect, and increases can only happen once every 12 months per tenancy. The notice must be delivered on the correct form (Form N1 for a standard increase) and must reference the correct guideline percentage. Getting the paperwork wrong is one of the most common and easily avoidable mistakes we see from self-managing landlords.
One important carve-out that continues to generate confusion: units first occupied for residential purposes after November 15, 2018, are generally exempt from rent increase guidelines. This means landlords of newer builds may set rent at market rate between tenancies and are not bound by the annual cap. However, this exemption applies to the unit, not the landlord, and it does not override other RTA protections. If you are unsure whether your property qualifies, verify directly with the Ontario government's rent increase page or speak with a licensed paralegal.
For landlords who believe a guideline increase does not cover their actual cost increases, an Above Guideline Increase (AGI) application to the LTB remains an option. These applications require documented evidence of extraordinary cost increases and are not a quick process. You can read more in our detailed breakdown of Above Guideline Rent Increases in Ontario.
Bill 60: The Fighting Delays, Building Faster Act
Bill 60, the Fighting Delays, Building Faster Act, received Royal Assent in 2025 and represents one of the more significant legislative updates to the Ontario rental framework in recent years. At its core, Bill 60 was designed to address the chronic backlog at the Landlord and Tenant Board, which had grown to the point where some landlords were waiting 12 to 18 months for a hearing on straightforward non-payment cases.
The key changes introduced or reinforced through Bill 60 include:
- Expanded use of written hearings and remote proceedings to reduce scheduling delays at the LTB
- Clearer timelines for adjudicating non-payment of rent applications (L1 applications)
- Provisions allowing the LTB to dismiss applications that are frivolous or that fail to meet basic evidentiary standards, cutting down on procedural delays caused by incomplete filings
- Updated rules around tenant review applications, aimed at reducing the use of reviews as a delay tactic
At Blue Anchor, we have been tracking Bill 60 closely since it was introduced. In our experience managing rentals across Belleville and the surrounding Quinte region, the LTB backlog has been one of the most frustrating realities for landlords dealing with genuine non-payment situations. A tenant who stops paying rent in January and successfully delays a hearing until October represents a serious financial loss, and Bill 60 is at least an acknowledgment that the system needed reform. Whether the practical improvements match the legislative intent will become clearer as 2025 and 2026 unfold.
We have written a more detailed breakdown of what Bill 60 actually means for landlords and tenants if you want to go deeper on the specifics.
Eviction Process Updates and LTB Backlogs
The eviction process in Ontario remains one of the most procedurally demanding in Canada. For landlords who have never filed with the LTB before, the learning curve is steep, and errors at any stage can result in applications being dismissed or delayed significantly.
For non-payment of rent, the process still begins with serving the tenant a Form N4 (Notice to End a Tenancy Early for Non-payment of Rent). The N4 gives the tenant 14 days to pay the outstanding rent in full. If the tenant does not pay, the landlord can then file an L1 application with the LTB. From there, the landlord waits for a hearing date, which under the pre-Bill 60 system could stretch for many months.
For other grounds, the timelines and forms differ. An N8 (Notice to Terminate at End of Term) covers persistent late payment. An N5 covers damage or interference with reasonable enjoyment. Each form has its own notice period and procedural requirements, and serving the wrong form or serving it incorrectly can void the entire process.
One change worth highlighting: the LTB has increased its use of written hearings for certain application types. This can actually work in a landlord's favour for straightforward cases, since written hearings tend to move faster than in-person proceedings. However, they require landlords to submit clear, organized documentary evidence, which means landlords who have not kept good records of rent payments, communications, and maintenance requests are at a disadvantage.
At Blue Anchor, we maintain detailed records on every tenancy through our property management platform, Rentvine. Every maintenance request, communication, and payment history is logged and retrievable. When an LTB matter arises, we are not scrambling to reconstruct a paper trail. You can learn more about how we handle eviction-related matters in our guide to legally evicting a tenant in Ontario.
Renovictions, the N13, and What Landlords Must Prove
Renovictions, the practice of evicting tenants under the guise of major renovations and then re-renting at a higher rate, have been a hot-button issue in Ontario for several years. The 2025 legislative environment tightened the rules around N13 notices (Notice to End a Tenancy Because the Landlord Wants to Demolish the Rental Unit, Repair or Convert it to Another Use) considerably.
To serve a valid N13, a landlord must now have obtained the necessary permits before serving the notice, and must be able to demonstrate that the work requires vacant possession and cannot be completed with the tenant in place. The tenant retains the right of first refusal to return to the unit once the work is complete, at the same rent they were paying before the notice, and the landlord must provide written notice of that right.
Relocation assistance requirements also apply. Depending on the length of the tenancy and the nature of the work, landlords may be required to provide the tenant with three months rent-free or help them find comparable alternative accommodation. These are not optional provisions, and failing to comply can result in the N13 being voided at the LTB.
The practical lesson for landlords in cities like Cobourg, Port Hope, and Oshawa, where older housing stock is common and renovation projects are frequent, is that the N13 process is not a shortcut to vacancy. If you are planning a major renovation and need the unit vacant, get proper legal advice before serving any notice.
Tenancy Agreements, Notice Periods, and Form Changes
Ontario's standard lease (the Residential Tenancy Agreement, Form 2229E) remains mandatory for most new tenancies. Landlords who fail to provide the standard lease within 21 days of a tenant's written request can face consequences, including the tenant withholding one month's rent. This rule has been in place for several years but continues to catch self-managing landlords off guard.
Notice periods under the RTA are specific and non-negotiable. Here is a quick reference for the most common situations:
- N4 (Non-payment of rent): 14 days notice for monthly tenants
- N12 (Landlord's own use): 60 days notice, must be for the end of a rental period
- N13 (Renovation/demolition): 120 days notice, must be for the end of a rental period
- N8 (Persistent late payment): 60 days notice, for the end of a rental period
- Rent increase (N1): 90 days written notice
One area where we see frequent errors is the N12 notice, used when a landlord or a close family member intends to move into the unit. The N12 requires the landlord to pay the tenant one month's compensation on or before the termination date. If that compensation is not paid, the notice can be voided. Additionally, if the landlord does not actually move in and instead re-rents the unit within 12 months, the tenant can file a bad-faith application and seek significant compensation.
At Blue Anchor, we do not serve notices casually. Every notice we issue is reviewed for accuracy before it goes out, because a procedural error on a notice can set a landlord back by months and cost far more than the original problem.
What This Means for Central Ontario Landlords Specifically
Landlords in Belleville, Trenton, Quinte West, Cobourg, Oshawa, Picton, and Port Hope operate in a market that has its own character. Rents in these communities are lower than Toronto but have risen meaningfully over the past three years. The 2.5% guideline for 2025 and 2.1% for 2026 may not keep pace with actual cost increases for landlords managing older properties with aging mechanical systems, rising insurance premiums, and municipal utility rate increases.
In Oshawa and Cobourg especially, we have seen increased investor activity over the past few years as buyers priced out of the GTA looked east. Many of these landlords are newer to property ownership and are encountering the RTA for the first time. The combination of a complex regulatory framework and an LTB that has historically been slow creates real risk for landlords who are not prepared.
The single most effective thing a landlord can do to protect themselves in this environment is to start with the right tenant. A well-screened tenant who pays on time and respects the property means you will almost never need to interact with the LTB. At Blue Anchor, our tenant screening process is thorough and consistent, and you can read exactly how we approach it in our post on how Blue Anchor screens tenants.
We also strongly recommend that every tenant in your property carry renters insurance. It protects them, and it protects you. Our own renters insurance program through Walnut Insurance offers coverage starting at $30 per month, including $1 million in liability and $100,000 in pet liability. You can read more about why we built our renters insurance program and how it benefits both landlords and tenants.
For a broader look at how the rental market in Ontario is performing right now, our May 2026 Rental Market Report covers vacancy rates, rent trends, and what landlords should be watching.
Frequently Asked Questions
What is the rent increase guideline for 2025 in Ontario?
The Ontario rent increase guideline for 2025 is 2.5%. This is the maximum a landlord can raise rent for most existing tenancies without LTB approval. For 2026, the guideline decreased to 2.1%. Landlords must give at least 90 days written notice using Form N1 before any increase takes effect.
Does Bill 60 make it easier to evict a non-paying tenant in Ontario?
Bill 60 introduced measures intended to reduce LTB delays, including expanded use of written hearings and clearer timelines for non-payment applications. Whether this translates to meaningfully faster evictions in practice is still being tested. The procedural requirements for filing an L1 application remain the same, and landlords still need to serve a valid N4 and wait out the notice period before applying.
Are new rental units exempt from rent control in Ontario?
Units first occupied for residential purposes after November 15, 2018, are generally exempt from the annual rent increase guideline. This means landlords can set rent at market rate when a new tenant moves in. However, other RTA protections still apply, and the exemption does not override rules around notice periods, maintenance obligations, or the eviction process.
What compensation does a landlord owe when serving an N12 notice?
When a landlord serves an N12 notice (landlord's own use), they must pay the tenant compensation equal to one month's rent on or before the termination date stated in the notice. Failure to pay this compensation can void the notice. If the landlord does not actually move in and re-rents the unit within 12 months, the tenant can file a bad-faith application at the LTB.
What is the best way for a Central Ontario landlord to stay compliant with the RTA?
The most practical steps are: use the standard Ontario lease for every tenancy, serve notices on the correct LTB forms with accurate dates, give proper notice periods, keep detailed records of all communications and payments, and screen tenants carefully before signing a lease. Working with a licensed property manager who knows the RTA is also one of the most effective ways to stay on the right side of the rules.
Final Thoughts
Ontario's landlord-tenant framework is not getting simpler. The 2025 changes, from the 2.5% rent guideline to the Bill 60 LTB reforms to tightened renoviction rules, reflect a regulatory environment that demands landlords be organized, informed, and procedurally precise. The cost of getting it wrong, whether that means a voided notice, a bad-faith finding, or months of lost rent while waiting for an LTB hearing, is significant.
At Blue Anchor, we manage residential rentals across Belleville, Trenton, Quinte West, Cobourg, Oshawa, Picton, and Port Hope, and staying current on Ontario rental law is a core part of what we do for our clients. If you are a landlord who is tired of keeping track of all of this yourself, we would be glad to talk about how professional management can take that burden off your plate. You can explore our services for Belleville property management, Cobourg property management, and Oshawa property management, or reach out directly to start a conversation.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. Ontario rental law is complex and fact-specific. For guidance on your particular situation, please consult a paralegal or lawyer licensed to practice in Ontario.
