Investing in rental property

The Residential Tenancies Act, 2006 (the RTA) applies to most private residential rental units, including rented houses, semis, apartments, condos and secondary units such as basement apartments. Disagreements between landlords and tenants go to the Landlord and Tenant Board (LTB), part of Tribunals Ontario. Some types of housing, such as university and college residences and commercial properties, fall outside many of the rent rules. Source: Renting in Ontario: Your rights.

For most units, rent can go up once every 12 months, and the landlord must give at least 90 days' written notice on the proper LTB form. The Government of Ontario's rent increase guideline is 2.1% for 2026 and 1.9% for 2027. The guideline is capped at 2.5%. Source: Residential rent increases.

Yes. According to Ontario, the guideline does not apply to new buildings, additions to existing buildings and most new basement apartments first occupied for residential purposes after November 15, 2018. The landlord must still give at least 90 days' written notice on the proper form. Before you count on an exemption, confirm when the unit was first occupied. Source: Residential rent increases.

When a new tenancy starts, the landlord and the new tenant agree on the rent. The guideline does not apply to a unit on turnover of a tenancy. After that, the guideline rules apply to the new tenancy. Source: Residential rent increases.

Only with approval from the LTB. A landlord can apply when municipal taxes and charges have gone up significantly, after major repairs or renovations (called capital expenditures), or for certain security service costs. Increases for capital expenditures or security services are limited to 3% above the guideline in a year. Source: LTB, A Guide to the Residential Tenancies Act.

Landlords of most private residential rental units must use Ontario's standard lease for new leases. If a tenant asks for it in writing and doesn't receive it within 21 days, they can withhold one month's rent. Lease terms that go against the RTA can't be enforced. Sources: Renting in Ontario: Your rights and LTB, A Guide to the Residential Tenancies Act.

Only a rent deposit (last month's rent), which can't be more than one month's rent or one rental period, and a refundable key deposit, which can't be more than the actual cost of the keys or fobs. Damage and pet deposits are not allowed. The landlord must pay the tenant interest on the rent deposit every year, at the rent increase guideline rate. Sources: Ontario standard lease, Part H and LTB, A Guide to the Residential Tenancies Act.

A landlord must keep the property in a good state of repair and follow health, safety, housing and maintenance standards, even if the tenant knew about a problem when they moved in. A landlord can't shut off vital services such as heat (from September 1 to June 15), electricity, fuel or water. To enter for things like repairs, an inspection or showing a buyer, a landlord generally gives 24 hours' written notice and enters between 8 a.m. and 8 p.m. Emergencies are an exception. Source: LTB, A Guide to the Residential Tenancies Act.

No. Under the RTA, the end of a lease does not mean a tenant has to move out, and a tenancy can only end for the reasons and with the notice the Act allows. If the tenant doesn't leave, the landlord has to apply to the LTB for an eviction order. A buyer who wants to live in the unit, or have an immediate family member or caregiver live there, has specific notice and compensation rules to follow. Plan this with your lawyer before you firm up an offer. Sources: Renting in Ontario: Your rights and LTB, A Guide to the Residential Tenancies Act.

Changes to the RTA from the Fighting Delays, Building Faster Act, 2025 (Bill 60) and the Helping Homebuyers, Protecting Tenants Act, 2023 (Bill 97) took effect in two stages. On July 1, 2026, according to Tribunals Ontario:

• The deadline to ask the LTB to review an order went from 30 days to 15 days.
• The LTB's Payment Agreement form became mandatory for repayment plans under section 206 of the RTA.
• Tenants may install a window or portable air conditioner if they meet the conditions, such as notifying the landlord in writing. If electricity is included in the rent, the landlord may charge a seasonal rent increase.
• Maximum fines for RTA offences rose to $100,000 for individuals and $500,000 for corporations.

Source: Tribunals Ontario, LTB Operational Update, June 30, 2026.

According to Tribunals Ontario:

• Non-payment of rent (N4): the notice period went from 14 days to 7 days for notices given on or after September 21, 2026.
• Persistent late payment: rent received more than seven days after the due date at least three times within six months is now considered persistently late.
• Landlord's own use (N12): for notices served on or after September 21, 2026, a landlord who gives at least 120 days' notice no longer has to pay compensation or offer another unit. With less notice, the existing compensation rules apply. This does not apply to a purchaser's own use. The landlord or the intended person must normally move in within 60 days of the date in the notice, or bad faith is presumed if the tenant applies to the LTB.
• Renovations and repairs (N13): a tenant who wants to move back must be told in writing the estimated completion date, any change to it and when the unit is ready, and be given 60 days to move back in.
• Rent arrears hearings: to raise other issues at the hearing, a tenant must pay the landlord half of the arrears claimed at least seven days before the hearing (for applications filed on or after September 21, 2026).
• Forms: several LTB notices and applications were updated. Previous versions will no longer be accepted as of November 30, 2026.

Source: Tribunals Ontario, LTB Operational Update, September 21, 2026.

• Rental Housing Property Management By-law (No. 2020-255): Ottawa landlords must give tenants up-to-date contact information, how to submit service requests and complaints, and site information such as fire safety, waste and parking. Source: City of Ottawa, guide for landlords.
• NewRental Renovation Licence By-law: approved by Ottawa City Council on July 15, 2026, in force January 1, 2027. A landlord seeking to evict for renovations or repairs will need a building permit before giving the N13 notice, must give the tenant the City's education guide, and must apply for a City licence within 7 days of giving the notice. Source: Engage Ottawa, Rental Renovation Licence By-law Review.
• Short-term rentals: the City of Ottawa requires a host permit under its Short-Term Rental By-law (No. 2021-104). The application lists a principal residence or a cottage as the rental types. If a short-term rental is part of your plan, check with the City before you buy. Source: City of Ottawa, Short-Term Rental Host Application Form.

Clarence-Rockland and the other municipalities I serve have their own by-laws, so check with the municipality for the property you're considering.

The LTB has information for landlords and tenants on the Tribunals Ontario website. For your own purchase, have your lawyer review the lease and the tenancy, and talk to your accountant about tax. I'm happy to help you gather the property details they need.