Ontario RTA Rent Control for new buildings - when is it exempt?

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Apr 27th, 2022 11:03 pm

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Apr 26th, 2022 4:25 pm

Redcoffee [OP]: Jr. Member; Aug 3, 2020; 190 posts; 493 upvotes

Apr 26th, 2022 4:25 pm

Ontario RTA Rent Control for new buildings - when is it exempt?

A new condominium building was nearing completion in 2018. Owners got occupancy over 6-8 months depending on which level their unit was at.

Some owners got occupancy in 2018 and some got in 2019.
Does the Rent Control Act apply to all units, or only the ones that got the occupancy in 2018?

Last edited by Redcoffee on Apr 27th, 2022 10:03 am, edited 2 times in total.

6 replies

Apr 26th, 2022 5:07 pm

spires: Jr. Member; Oct 31, 2014; 158 posts; 235 upvotes; Toronto, ON

Apr 26th, 2022 5:07 pm

6.1 (2)

Sections 120, 121, 122, 126, 127, 129, 131, 132, 133, 165 and 167 do not apply on and after the commencement date with respect to a rental unit if the requirements set out in one of the following paragraphs are met:

1. The rental unit is located in a building, mobile home park or land lease community and no part of the building, mobile home park or land lease community was occupied for residential purposes on or before November 15, 2018.

2. The rental unit is entirely located in an addition to a building, mobile home park or land lease community and no part of the addition was occupied for residential purposes on or before November 15, 2018.

Apr 26th, 2022 5:50 pm

senasena: Deal Addict; Feb 19, 2019; 1970 posts; 3096 upvotes; Stouffville ON

Apr 26th, 2022 5:50 pm

If even one unit in a new condo was occupied for residential purposes prior to Nov 15, 2018 the whole building is rent controlled.

Probably won't matter if NDP or libs are elected.

Full Time and Full Service Realtor

+3

Apr 27th, 2022 9:39 am

Redcoffee [OP]: Jr. Member; Aug 3, 2020; 190 posts; 493 upvotes

Apr 27th, 2022 9:39 am

spires wrote: ↑ 6.1 (2)

Sections 120, 121, 122, 126, 127, 129, 131, 132, 133, 165 and 167 do not apply on and after the commencement date with respect to a rental unit if the requirements set out in one of the following paragraphs are met:

1. The rental unit is located in a building, mobile home park or land lease community and no part of the building, mobile home park or land lease community was occupied for residential purposes on or before November 15, 2018.

2. The rental unit is entirely located in an addition to a building, mobile home park or land lease community and no part of the addition was occupied for residential purposes on or before November 15, 2018.

@spires Pardon me for being thick, but based on your post, what is your interpretation?
I was never good at figuring out legal language.

Apr 27th, 2022 4:29 pm

wiab89: Deal Addict; Feb 7, 2018; 1131 posts; 1930 upvotes

Apr 27th, 2022 4:29 pm

senasena wrote: ↑ If even one unit in a new condo was occupied for residential purposes prior to Nov 15, 2018 the whole building is rent controlled.

Probably won't matter if NDP or libs are elected.

The first part just highlights how absolutely ridiculous the rent control legislation is. One guy could have moved in on Nov 10,2018 when building was still being completed on upper floors and yet the whole building is now rent-controlled. Mind-boggling stupidity brought to you by Govt of Ontario.

I agree about NDP but don’t think the Libs will repeal the legislation in-place if elected. Worst case scenario for us is Lib minority with kingmaker NDP like what we have at the Federal level then we’re totally effed.

Apr 27th, 2022 5:50 pm

Stupido: Sr. Member; Aug 9, 2020; 968 posts; 532 upvotes

Apr 27th, 2022 5:50 pm

senasena wrote: ↑ If even one unit in a new condo was occupied for residential purposes prior to Nov 15, 2018 the whole building is rent controlled.

Probably won't matter if NDP or libs are elected.

As a landlord, If you do have one of these non rent controlled units, and your tenant has now reached the end of its lease term (i.e. one year), how do you deliver the rent increase? Which form do you use if then the tenant is going month to month now? How long does that new rental rate last? Could you theoretically increase again say 6 months later?

Apr 27th, 2022 11:03 pm

Dimeron: Newbie; Apr 6, 2009; 88 posts; 88 upvotes; Kanata

Apr 27th, 2022 11:03 pm

Stupido wrote: ↑ As a landlord, If you do have one of these non rent controlled units, and your tenant has now reached the end of its lease term (i.e. one year), how do you deliver the rent increase? Which form do you use if then the tenant is going month to month now? How long does that new rental rate last? Could you theoretically increase again say 6 months later?

N2 form, at least 90 days notice.

It last forever until tenancy ends. Rent controlled or not, rent can only be increased 12 months from last rental increase or start of tenancy.

Also, even if the tenant signs a 2/3/infinite year fixed term lease, rent can still be increased as long as proper form is used and it has been 12 months.

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