LeasePlain.com
HomeBlogPost-2018 Rent Control Exemption in Ontario
OntarioAugust 3, 20266 min read

Why Isn't My Rent Capped? The Post-November 2018 Rent Control Exemption

You checked the 2026 guideline, but your landlord says it doesn't apply to you — and they might be right. One date, November 15, 2018, decides whether your rent is capped at all. Here's how the exemption works, and the protections you keep either way.

The One Date That Decides Everything

Ontario's annual rent increase guideline — 2.1% for 2026 — does not apply to every rental. In 2018, the province exempted newer housing from the guideline to encourage construction. The dividing line is November 15, 2018:

  • First occupied before November 15, 2018: the guideline applies. Your landlord can't exceed 2.1% in 2026 without LTB approval.
  • First occupied on or after November 15, 2018: the unit is exempt from the guideline. There's no percentage cap on the increase.

"First occupied" means the first time the unit was ever used as a residential rental — not when you moved in. It captures new buildings, brand-new additions, and spaces converted from non-residential use after that date.

What "Exempt" Actually Means

If your unit is exempt, your landlord can raise the rent by any amount— there's no 2.1% ceiling. But "exempt from the guideline" is not "exempt from the rules." The landlord must still:

  • Give proper written notice on Form N1;
  • Provide at least 90 days' notice before the increase; and
  • Wait at least 12 months between increases (and between your move-in and the first increase).

So an exempt unit can see a large jump — but never a surprise one, and never more than once a year. If you want to double-check the notice and timing on any increase, our Rent Increase Calculator and 2026 guideline guide walk through the requirements.

Vacancy Decontrol: The Rule Between Tenants

There's a second, broader reason a rent might seem uncapped: vacancy decontrol. In Ontario, the guideline limits increases during a tenancy, but once a unit becomes vacant, the landlord can set any starting rentfor the next tenant — even in a rent-controlled building. This applies to almost all units, not just post-2018 ones, and it's a big reason advertised rents can be far above what the current tenant pays.

The Protections You Keep No Matter What

Being in an exempt unit does not make you a second-class tenant. Every other part of the Residential Tenancies Act still protects you:

  • Proper eviction procedures — you can only be evicted through the LTB.
  • The last month's rent deposit rules (no damage deposits).
  • The right to repairs and maintenance.
  • Protection from illegal entry and from vital-service shut-offs.
  • The 90-day notice and once-a-year limits on increases.

Frequently Asked Questions