In Guide
Tenant Rent Control in Canada: Guide For Ontario, BC and Alberta
Mi Property Portal
May 23, 2024 - 6 min readWhat is Rent Control?
Rent control refers to government rules and regulations governing rent rates in residential properties. The main objective is to protect tenants from excessive rent increases and to provide them with stable and affordable housing options.
Rent control varies among Canadian provinces. Our detailed article explains the Rent Increase Guideline in Canada 2024.
Rent Control in Ontario
In Ontario, rent control is governed by the Residential Tenancies Act, 2006. Ontario’s primary objective of rent control is to protect tenants from excessive rent increases while allowing landlords to cover their costs and make a reasonable profit.
Landlords must give proper N1 Form Notice of Rent Increase to tenants before increasing rent. The notice period varies depending on the type of rental agreement, but it must be at least three months’ notice.
Annual Rent Increase Guideline in Ontario
The province sets an annual rent increase guideline, which specifies the maximum percentage by which a landlord can increase rent in any given year. For example, in 2024, the rent increase guideline Ontario allows for a maximum increase of 2.5%.
Properties Exempt from Rent Control in Ontario
In Ontario, rent control exemptions are generally based on the age of the building and the date of first occupancy by any tenant.
Key exemptions include:
- New Buildings: Units newly constructed or first occupied after November 15, 2018, are exempt from rent control. This exemption was introduced to encourage the development of new rental units.
- Significant Renovations: If a rental unit is vacant due to significant renovations, rent control does not apply to the new lease with the new tenant, provided certain conditions are met.
- Owner’s Family Use: If a landlord requires the unit for their own use, or for the use of an immediate family member, they may evict the tenant, following which rent control does not apply to the new lease.
- Substantial Additions: Any new apartments created in a building or a converted commercial property are exempt if the building was originally occupied for residential purposes after November 15, 2018.
Rent Control in British Columbia (BC)
The Residential Tenancy Act (RTA) governs BC’s rent control policies. Like Ontario, BC has annual rent increase guidelines that landlords must adhere to. The maximum allowable rent increase is tied to the inflation rate calculated each year.
BC has additional protections for tenants, such as:
- A notice requirement for rent increases
- Limits on rent increases between fixed-term tenancies
- Restrictions on rent increases for manufactured home park tenancies
BC’s approach includes specific provisions for maintenance and improvement costs, allowing landlords to apply for additional rent increases to cover significant renovations or repairs.
Properties Exempt from Rent Control in BC
BC has some specific exemptions where rent control does not apply:
- New Rental Buildings: Similar to Ontario, BC exempts rental units in buildings that have a building permit issued on or after January 1, 2021. This policy aims to stimulate new housing developments.
- Secondary Suites: If the suite was built or legally authorized after 2004 and is self-contained with its own entrance, it may be exempt from rent control.
- Fixed-Term Leases: In some cases, landlords may require the tenant to vacate at the end of the term if the lease is fixed-term with a scheduled end date.
- Vacation or Travel Accommodations: Rent control does not apply to vacation or travel accommodations, provided they are rented under a license for a temporary period.
- Subsidized Housing and Buildings: BC has exemptions for certain rental properties, such as subsidized housing and buildings constructed after November 1991.
Annual Rent Increase Guideline in British Columbia (BC)
The maximum rent increase for the year 2024 in British Columbia has been set at 3.5%, the highest since 2018 according to rent increase guideline BC. This is an increase of 1.5% from the previous year, but it still falls below the 12-month average inflation rate of 5.6%.
The cap on the rent increase applies to any hike on or after January 1st, 2024.
Rent Control in Alberta
Alberta does not have specific rent control measures. Landlords in Alberta can increase rent as they wish if it is not specified in the lease agreement. This absence makes the rental market more influenced by supply and demand dynamics.
However, the province does have protections for tenants against unreasonable rent increases. While there is no specific annual rent increase guideline in Alberta, tenants are protected against unreasonable rent increases under the RTA Alberta.
Landlords must provide proper notice before increasing rent. Tenants in Alberta have legal protections against eviction without cause and are entitled to proper notice for lease terminations.
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Conclusion
That is all about Rent increase Bc. Navigating the landscape of rent increases and tenant rights in British Columbia requires understanding the regulations, staying informed, and advocating for oneself.
Frequently Asked Questions (FAQs) About Rent Control in Canada
Landlords are only allowed to raise rent once every 12 months. They must provide written notice at least 90 days prior to the increase.
In 2024, the rent increase guideline allows for a maximum increase of 2.5%.
. Alberta does not have specific rent control measures. Landlords in Alberta can increase rent as they wish if it is not specified in the lease agreement.
New buildings are exempt from rent control in Ontario primarily to address the housing shortage, stimulate the development of new housing stock and encourage investment in the residential real estate sector.
The maximum rent increase for 2024 in British Columbia has been set at 3.5%, the highest since 2018.
Yes, depending on provincial regulations, newer buildings or rental units that are first occupied after a specific date may be exempt.