Is your Ontario unit exempt from rent control?
Updated · Sources
An Ontario rental unit is outside the rent increase guideline if it was first occupied for residential purposes after November 15, 2018 and fits one of three situations set out in the Act, unless your tenancy agreement was made on or before that date. Exempt doesn't mean unregulated: the landlord still needs 90 days of written notice on the proper form and 12 months between increases.

How to read the result
The tool asks yes, no or not sure questions: the kind of building, whether anyone lived in any part of it on or before the cut-off date, your unit's features if it's in a house, when your agreement was signed, and whether your home has its own rules (social housing, a care home). "Not sure" gets you how to find out.
The outcome is one of four: covered by the guideline; exempt if the landlord can prove it; outside the Act; or under different rent rules. An exempt outcome lists what the landlord must still do. Read "exempt" as "exempt if the facts are as you entered them".
The three situations in the Act
The exemption is section 6.1 of the Residential Tenancies Act, 2006, in force since December 6, 2018. A unit qualifies under one of these, and only one needs to be true.
1. A new building, mobile home park or land lease community
The unit is in a building, mobile home park or land lease community and no part of it was occupied for residential purposes on or before November 15, 2018 (s. 6.1(2), para. 1).
The test looks at the whole building: if anyone lived in any part of it on or before the date, no unit there qualifies under this branch, however new yours is.
2. An addition
The unit is entirely in an addition and no part of the addition was occupied for residential purposes on or before November 15, 2018 (s. 6.1(2), para. 2).
"Entirely" matters: a unit that straddles the old building and the new wing doesn't qualify. For a mobile home park or land lease community, an addition means an expansion beyond its boundaries (s. 6.1(1)).
3. A new unit in a detached, semi-detached or row house
This is the branch for basement and attic apartments added to a house after the cut-off date. All four conditions must be met (s. 6.1(3)):
- On or at any time before the cut-off date, the house contained not more than two residential units.
- The unit has its own bathroom and kitchen facilities. Entrances: One or more entrances; at each, a door that can be secured from inside; at least one capable of being locked from outside.
- The unit became a residential unit of that kind after November 15, 2018.
- At least one of these is true:
- When the unit was first occupied, the owner (or one of the owners) lived in another residential unit in the house;
- The unit is in a part of the house that was unfinished space immediately before it became a residential unit.
When the exemption doesn't apply even though the unit is new
- A lease signed early. The exemption doesn't apply to a tenancy under a tenancy agreement entered into on or before November 15, 2018 (s. 6.1(4)). That tenancy stays under the guideline for as long as it lasts.
- The next tenant. Only that tenancy is excluded; a subsequent tenancy can be exempt (s. 6.1(5)).
- No proof. The onus is on the landlord to prove that the subsection applies (s. 6.1(6)). If the landlord can't show it, the exemption fails.
What an exempt unit must still follow
Section 6.1 lists exactly which sections an exempt unit is spared: ss. 120, 121, 122, 126, 127, 129, 131, 132, 133, 165, 167 (not ss. 116, 118, 119)Residential Tenancies Act, 2006, s. 6.1(2)checked September 30, 2026; for a unit in a house, s. 6.1(3) gives the same list without ss. 165 and 167. The notice section and the 12-month rule aren't on the list, and the LTB's guide says so in plain words: The landlord must still give at least 90 days' notice in writing using the proper form but there is no limit on the size of the rent increaseTribunals Ontariochecked September 30, 2026.
For an exempt unit, your landlord can set any increase, but must still:
- give you at least 90 days of written notice before it takes effect (s. 116);
- wait 12 months since your last increase, or since you moved in (s. 119);
- use the LTB's form for a partially exempt unit, N2 - Notice of Rent Increase (Unit Partially Exempt), according to the LTB's instructions for Form N1.
The N2 instructions: The landlord can raise the rent by any amount (12 months and 90 days still apply). To check whether the notice came early enough, use the N1 notice calculator, which handles N1 and N2 dates alike.
Other homes outside the guideline or under different rules
- A new tenancy
- The guideline never limits the starting rent: on turnover, the landlord and the new tenant agree on the rent amount (Residential rent increases). The Act sets the lawful rent for a new tenant (s. 113): The rent first charged to the new tenant (subject to s. 111). Where an LTB order prohibiting an increase is in force for the unit: The landlord must give written notice about the lawful rent before the agreement; the new tenant may apply within one year (ss. 114 and 115).
- Outside the Act altogether
- Includes hotel/motel/cottage-type seasonal accommodation, farm-employee accommodation, shared bathroom or kitchen with the owner or the owner's close family living in the building, short-term emergency shelter, hospitals and similar, some programs (s. 5.1). None of the rent rules on this site apply to these (s. 5).
- Social, community and non-profit housing
- Social housing is covered by the Act but has different rules on rent control and increase notices. For the units listed in s. 7(1), including non-profit housing and non-member units in co-operatives, the guideline and most other rent rules don't apply. In the Act's terms: Ss. 111-115, 117, 120-122, 126-133 do not apply to these units. On the 12-month rule: Section 119 does not apply to geared-to-income units in paras 1-4 and to paras 5-6 units (s. 7(2)). On a geared-to-income rent: Part VII does not apply to an increase in the amount geared-to-income paid by the tenant (s. 8(1)). The same treatment extends to these units: Units under certain Canada-Ontario affordable housing programs (O. Reg. 516/06 s. 6) and the Rural and Native Rental Housing Program.
- Homes for special care and developmental-services residences
- Ss. 111 to 115 and 119 to 134 (including the guideline and the 12-month rule) do not apply (s. 6(1)).
- Care homes
- The guideline applies to the rent portion but not to the cost of services like nursing, food or cleaning. Increases to care or meal charges need 90 days of notice on Form N3 and are void unless notice is given (s. 150).
- Mobile homes and land lease communities
- Covered by the guideline. When a tenant sells the home and assigns the site, the increase for the buyer is limited: Not more than the prescribed amount: the greater of $50 per month and the increase the landlord could have taken had the former tenant stayed (s. 165).
How to find out when your unit was first occupied
If the exemption is argued at the LTB, the landlord has to prove it, not you (s. 6.1(6)). The government's guidance: The landlord can include an additional term under section 15 of the lease stating that the unit is exempt, and keep records. It lists the records that prove the exemption:
- for a new building or an addition: Building permits, permit applications and plans; occupancy permits; new home warranty documents; documents from the builder;
- for a new unit in a house: Documents from the builder or invoices from the contractor; before-and-after photographs; building permits, permit applications and plans.
- Look in your lease for an additional term saying the unit is exempt.
- Ask your landlord in writing which of the three situations they rely on and to show the records above.
- If you know someone lived anywhere in the building on or before the cut-off date, the new-building branch fails, whatever the landlord says.
- Call the LTB at 1-888-332-3234. The government's page: A tenant or landlord can contact the LTB, or apply on A1 for a determination of whether the Act applies.
- For a binding answer, file A1 - Application about Whether the Act Applies (s. 9(1)(a)). You can make this application if you are the landlord or the tenant. The fee is $53Tribunals Ontariochecked September 30, 2026.
Worked examples
A basement apartment in a semi-detached house
A Toronto semi was a one-family house until 2020, when the owner turned its unfinished basement into an apartment with its own kitchen, bathroom and lockable side door, and kept living upstairs. You pay $1,650.00; your last increase took effect June 1, 2026. The landlord serves an N2 raising the rent to $1,900.00 from June 1, 2027.
All four house conditions hold, so the unit is exempt if the landlord can prove it, and there's no cap: $1,900.00 − $1,650.00 = $250.00, which is 15.2% ($250.00 ÷ $1,650.00 = 0.1515). What still binds: June 1, 2027 is a full 12 months after June 1, 2026, and 90 days before June 1, 2027 is March 3, 2027, the last day the N2 can be handed to you. By mail, it would have to go out by February 26, 2027, because mail counts as delivered on the fifth day after mailing.
A new unit in a building that wasn't new
A Mississauga condo tower took its first residents in September 2018. Your unit sat empty until you moved in on May 1, 2020, and you now pay $2,300.00.
The new-building branch fails: people lived in part of the building before the cut-off date, and the test looks at the whole building. Your unit is covered. An increase taking effect in 2027 can be at most $2,300.00 × 1.9% = $43.70, a rent of $2,343.70.
A lease signed before the building opened
You signed a lease on October 20, 2018 for a unit in a new Kitchener building; the first residents, you included, moved in during January 2019.
The building meets the new-building test, but your agreement was entered into before the cut-off date, so your tenancy stays under the guideline (s. 6.1(4)). When you leave, the next tenant's tenancy can be exempt (s. 6.1(5)).
If you disagree with your landlord about the exemption
Only the LTB decides whether a unit is exempt, on an A1 application or inside another case, and the landlord has to prove it. If you've been paying an increase above the guideline in a unit you believe is covered, the N1 calculator totals the difference and shows how long you have to claim it, and lists free legal help. For a covered unit, the limit itself is on the guideline page.
Sources
- Residential Tenancies Act, 2006, S.O. 2006, c. 17 (consolidation from September 21, 2026; currency date September 28, 2026)Government of Ontario
- Brochure: A Guide to the Residential Tenancies ActTribunals Ontario
- Form N1 Notice of Rent Increase: Instructions (November 30, 2015)Tribunals Ontario
- Form N2 Notice of Rent Increase, Unit Partially Exempt: Instructions (May 2017)Tribunals Ontario
- Residential rent increasesGovernment of Ontario
- O. Reg. 516/06 (General) under the Residential Tenancies Act, 2006Government of Ontario
- LTB contactTribunals Ontario
- Form A1 Application about Whether the Act Applies: InstructionsTribunals Ontario
- LTB forms, filing and feesTribunals Ontario
Every source listed here was consulted on .