"New" Units exempt from Ontario rent control?

Submitted by contact@inverroyinvestments.com on Thu, 11/12/2020 - 22:43

Hi there. I'm relatively new landlord and seeking guidance on handling rent increases with tenants. I realize its touchy subject during COVID and pending clarification from the Ontario government about freezing rents in 2021.

If a rental unit is defined as "new" (first occupied as rental after Nov 2018) then I understand it is exempt from the current annual Ontario rent control rules. If that is the case then are you still supposed to use the government N1 form to advise tenant of rent increase or can you use other document?

From who/how do you obtain clarification that a unit is exempt or not from Ontario rent control ? (or is it up to landlord to determine??)

e.g. Would new added legal basement apartments first rented out after Nov 2018 be exempt but the main floor unit still be subject to rent control? Would you agree with that interpretation? Same question for any other properties that were renovated to provide legal units?

I'd be interested to connect with anyone familiar with this issue.

Many thanks

Duncan

- March 16, 2021

Hi Duncan, I need to be very clear in that I am certainly no expert on the subject, but I recently heard an expert on a local and quite reputable podcast state a different opinion. She was saying that this exemption really only applies the first time that you raise the rents. For example, if you first rented your new unit after Nov/18, and upped your rent for the first time Jan/20, you'd be exempt from the cap. But the next time you go to increase rent, because it's no longer a "new" unit, you'd be bound by the provincial cap for the year. I have not confirmed this, and would love to hear from someone else who may know better.

- March 16, 2021

Hi there. I'm relatively new landlord and seeking guidance on handling rent increases with tenants. I realize its touchy subject during COVID and pending clarification from the Ontario government about freezing rents in 2021.

If a rental unit is defined as "new" (first occupied as rental after Nov 2018) then I understand it is exempt from the current annual Ontario rent control rules. If that is the case then are you still supposed to use the government N1 form to advise tenant of rent increase or can you use other document?

From who/how do you obtain clarification that a unit is exempt or not from Ontario rent control ? (or is it up to landlord to determine??)

e.g. Would new added legal basement apartments first rented out after Nov 2018 be exempt but the main floor unit still be subject to rent control? Would you agree with that interpretation? Same question for any other properties that were renovated to provide legal units?

I'd be interested to connect with anyone familiar with this issue.

Many thanks

Duncan