Ask an Expert with Adam Hoffman


Are buildings constructed after a certain date exempt from rent increase guidelines in Ontario? Do renovations or zoning changes affect this date?

Yes, here are significant distinctions on this that I have included below.

You can also (try) to increase above the rent increase guideline amount based on increases in your costs (restrictions apply such as it should be for utilities, property tax, security, certain accommodations of disabilities, and certain other costs have increased more than one and half times the rent increase amount).

Generally upgrades and aesthetic items will not be applicable when calculating this. Replacing a parking garage because it was old and leaking might be an applicable cost. Certain upgrades have different limitations to the amount of cost of time lines over which it can apply.

However there are costs/time to do this so it is often only done in larger complex’s where there will be enough suites to absorb the administration to try (in certain places) only $2 more per month.

For rent increases based on age here is form 6(2) of the R.T.A.:

Rules relating to rent

(2) Sections 104, 111, 112, 120, 121, 122, 126 to 133, 165 and 167 do not apply with respect to a rental unit if,

(a) it was not occupied for any purpose before June 17, 1998;

(b) it is a rental unit no part of which has been previously rented since July 29, 1975; or

(c) no part of the building, mobile home park or land lease community was occupied for residential purposes before November 1, 1991. 2006, c. 17, s. 6 (2).

I want to highlight again that caution is needed in interpenetrating all of the above application to specific property situations. 

As president of Hoffaco Property Management – – Adam Hoffman helps rental property owners in Waterloo and Kitchener. Between owning, managing, and renting hundreds of locations near three post-secondary institutions, he has extensive student rental experience. Adam is happy to share his knowledge and welcomes questions on rental property operations throughout Ontario.


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