How does rent control work in Ontario, and does it apply to you?
CBC
If you're talking about renting in Ontario, chances are there's one term that comes up over and over again: rent control.
But what does that actually mean, and how does it work? Perhaps most importantly, does it apply to your apartment?
Here's what you need to know:
Any apartment, house, condo, basement or mobile home that someone has lived in since before Nov. 15, 2018 is covered by rent control. That doesn't mean rent can't go up. It means that rent can be increased once a year and the provincial government decides by how much.
In 2023 and 2024, rent increases were set at a maximum of 2.5 per cent a month. That means if you're renting an apartment for $1,500 and it's under rent control, a maximum increase would see you pay an extra $37.50 for a new monthly total of $1,537.50.
Straight forward enough, right?
Not so, explains Bruno Dobrusin of the York South Weston Tenant Union. It's not that simple.
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"There are many holes in that system," Dobrusin said. "That's important to understand because that's the origin of a lot of the problems that tenants have."
Let's take a look at some of those "holes" he's talking about.
Short answer: yes.
As mentioned, rent control means landlords are allowed to raise rent by a pre-determined amount each year. But there is another way they can raise rent beyond what's typically allowed.
In technical-speak, this is called an above guideline rent increase, or AGI. With approval, landlords can bump rent up another three per cent per year.
To do that, the landlord has to convince the province why they should be allowed to raise your rent above the rent-controlled 2.5 per cent. The province gives your landlord three options from which to argue their case:
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