Ontario Moves to Cap Rents Between Tenants

Summary#

• This bill changes Ontario’s rental housing law to stabilize rent and strengthen repairs. It also creates a public rent registry and guarantees free legal help for certain rent increase cases.

• The main goals are to stop large rent jumps between tenants, make repair orders stick, and give renters and landlords clear rent information.

• Key changes:

  • Adds “vacancy control”: when a new tenant moves in, the rent usually cannot be higher than the last lawful rent (unless the unit has never been rented).
  • Strengthens repair duties: landlords must keep buildings in good repair and safe to live in, and are in breach if standards aren’t met, regardless of effort.
  • Lets tenants apply to the Landlord and Tenant Board (LTB) if a landlord fails to follow a prior order or mediated settlement; the LTB can order daily fines up to $1,000 and rent abatements until the work is done.
  • Creates a rent registry. Landlords must file rent and unit details with the LTB and update after any rent change. Addresses and rents will be published.
  • Blocks rent increases until the landlord files the required registry statement.
  • Guarantees free legal representation for tenants facing applications to raise rent above the annual guideline.
  • Allows the LTB to pause or refuse a landlord’s application if the landlord owes Board fines/fees or hasn’t filed the rent registry statement.
  • Takes effect six months after it becomes law.

What it means for you#

• Tenants

  • Rent for a new tenant will usually match the last lawful rent for that unit, limiting big jumps between tenancies.
  • If your landlord doesn’t complete repairs ordered by the LTB or agreed to in mediation, you can apply (without giving notice to the landlord). The LTB can cut your rent or fine the landlord daily until the work is done. It can also set rent reductions equal to the reasonable cost for you to complete the work.
  • You can ask the LTB to set the maximum lawful rent you can be charged and get a rebate if you were overcharged.
  • You will get a copy of any rent registry filing for your unit and can ask the LTB to correct errors within 60 days.
  • If your landlord was under an order that froze rent increases and then fully fixes serious issues, they can resume increases without a new notice. The timing counts as if the increase had been taken when first allowed.
  • If a landlord hasn’t filed the registry statement for your unit, they cannot raise your rent until they do.

• Prospective renters

  • You can look up the address and rent history for units in the public rent registry and request full details if you have applied to rent that unit.
  • This helps you see what previous tenants paid and spot illegal increases.

• Landlords

  • You must keep the property and units in good repair and up to health and safety standards. Failing to meet standards is a breach, even if you tried.
  • If you miss deadlines in an LTB order or mediated settlement, the LTB can fine you up to $1,000 per day and order rent abatements until you comply.
  • You must file a rent registry statement within 30 days of signing a lease, update it within 30 days of any rent change, and give copies to the tenant.
  • You cannot raise rent until the registry statement is filed. Providing false information or failing to file is an offence.
  • The LTB can pause or refuse your applications if you owe Board fines/fees or haven’t filed the registry statement.
  • For units that have been rented before, the first rent you can charge a new tenant is generally capped at the last lawful rent (with adjustments if the unit sat vacant over 12 months). If a unit has never been rented, you set the first rent.

• Legal Aid and the LTB

  • Tenants directly affected by an above-guideline rent increase (AGI) application get free legal representation at the LTB, without a financial means test or contribution.
  • The LTB will build and run the rent registry, publish address and rent data, verify requesters, and share information with tax authorities when allowed.

Expenses#

No publicly available information.

• Likely new costs for the LTB to build, maintain, and verify a province-wide rent registry and to administer new applications and fines.
• Legal Aid Ontario will have added costs to provide free representation in AGI cases.
• Some costs may be offset by administrative fines paid to the Board; landlords will also face compliance costs to file and update registry information.

Proponents' View#

• Stops large rent hikes between tenancies, helping renters plan and stay housed.
• Improves building conditions by adding clear duties and real consequences (daily fines, rent cuts) when repair orders aren’t followed.
• Increases transparency with a public rent registry, reducing illegal rent charges and confusion.
• Levels the playing field by guaranteeing tenants a lawyer in complex above-guideline increase cases.
• Encourages faster compliance by linking rent increases and Board applications to filing the registry and paying outstanding fines.

Opponents' View#

• Could discourage investment in rental housing and reduce new supply, since landlords can’t raise rent between tenants.
• May push some small landlords to sell, convert units, or be more selective, making it harder for some renters to find housing.
• Adds administrative burden and penalties (filings, updates, potential fines), which could raise operating costs.
• Publishing rents and addresses may raise privacy concerns and lead to disputes over data accuracy.
• Expanded legal aid and a new registry will cost money and could slow LTB processes if not funded and staffed well.