LandlordEzy

Rent-controlled unit vs. exempt unit — how do you tell which one you have?

by LandlordEzy Team · · 1 views 🆘 Paralegal review
Common confusion: rent control rules changed in Ontario in 2018 (and were modified again). Which units are still subject to the annual guideline, and which are exempt?

1 comment

Sign in to comment. Free, takes 30 seconds.
OLH Property Management 📌 Pinned ·
Two categories:

**Subject to the annual rent-increase guideline:**
- Most units in buildings first occupied for residential use BEFORE November 15, 2018
- Most existing tenancies — the unit moves with the tenant, even after vacancy turnover

**Exempt from the guideline (can increase rent by any amount on N1, still 90 days notice + 12 months between):**
- Units in buildings first occupied for residential use ON OR AFTER November 15, 2018 (the 2018 carve-out)
- Certain commercial-to-residential conversions if first residential occupancy was after Nov 15, 2018
- Single-room boarding houses where the landlord lives on premises (varies)

**Important catch:** "Exempt" doesn't mean you can ignore the RTA. You still need to:
- Serve N1 with 90 days notice
- Wait 12 months between increases
- Use the proper form (some forms are unit-specific)

And "exempt" doesn't mean the LTB can't review for bad-faith eviction-to-increase-rent patterns. Section 49 enforcement still applies even to exempt buildings.

If you're not sure whether your unit is exempt: check the original residential occupancy permit date from the city. That's the controlling date, not the build date or your purchase date.

VirtualPM Legal Shield handles exemption analysis + N1 strategy. Book a free 15-minute consult.
Need us to handle this file from start to finish? VirtualPM Legal Shield members get full paralegal representation for $199/month until resolved. Activate Legal Shield