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Understanding Lease Termination, Rent Increases, and Rent Control in Ontario

As a tenant or landlord in Ontario, it’s essential to understand the rules governing lease termination, valid reasons for ending a tenancy, rent increases, and rent control. Here’s a concise overview:

Lease Termination Periods:

Tenant Initiated:
- Fixed-Term Lease: Provide at least 60 days’ written notice before the lease ends.
- Month-to-Month Tenancy: Give 60 days’ written notice before the end of any rental period.
- Weekly Tenancy: Offer 28 days’ written notice before the end of any rental period.
Landlord Initiated:
A landlord can terminate the lease for the following reasons:
- Non-payment of rent
- Substantial damage to the property
- Illegal activity on the premises
- Interfering with other tenants’ reasonable enjoyment
- Failure to comply with health, safety, or maintenance standards
- Landlord or close relative’s use: A landlord may take back the unit for personal use or for the use of a close relative (spouse, child, parent, sibling). In this case, the landlord must provide at least 60 days’ written notice and offer compensation to the tenant (usually one month’s rent) or offer an equivalent unit.
Notice Period: Generally, 60 days’ written notice is required, but this can vary based on the reason for termination.

Rent Increases:

Frequency: Landlords can increase rent once every 12 months.
Notice: Provide tenants with at least 90 days’ written notice before the increase.
Guideline: For 2025, the rent increase guideline is 2.5%.

Rent Control:

Applicability: Rent control applies to most residential rental units built before November 15, 2018.
Post-2018 Units: For units built after this date, rent control does not apply, allowing landlords to set initial rents at market rates.

For more details, refer to the Residential Tenancies Act, 2006.

Understanding these regulations helps ensure a fair and transparent rental experience for both tenants and landlords.

Find your dream Home HERE!

Cathy Tse, Realtor

Direct: 647-463-8810 – Email: cathy.tse@century21.ca

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