What Is Rent Control?
Rent control refers to government regulations that limit how much landlords can increase rent on existing tenancies, typically by capping annual increases to a set percentage or tying them to an inflation measure. Rent control policies are intended to protect tenants from sharp rent increases and provide stability of tenure, particularly in cities with tight rental markets. However, they are also controversial among economists, who argue that rent control can reduce rental supply by discouraging new construction and the maintenance of existing units.
Ontario
Ontario has a two-tier system for rent control. Units that were first occupied before November 15, 2018 are subject to rent control, with annual increases limited to the provincially set guideline (based on inflation, typically 1% to 3% per year). Landlords must provide 90 days’ written notice before any increase takes effect. Units first occupied on or after November 15, 2018 are exempt from rent control — landlords can raise rent on these units to market rates upon renewal, subject to the required notice periods.
This exemption was introduced by the provincial government to encourage new rental construction by ensuring that investors in new rental buildings could achieve market rents. Critics argue it has created a two-tier rental market that disadvantages tenants in newer buildings.
British Columbia
British Columbia has provincial rent control that limits annual rent increases for existing tenants to the BC rent increase guideline, which is tied to inflation. Unlike Ontario, BC does not have a unit-based exemption for newer buildings — rent control applies to all residential tenancies regardless of when the unit was first occupied. BC does allow landlords to apply for additional rent increase approval in specific circumstances.
Alberta, Saskatchewan, and Manitoba
Alberta, Saskatchewan, and Manitoba do not have provincial rent control legislation. Landlords in these provinces can raise rents by any amount upon lease renewal, subject to required notice periods. This regulatory environment is considered more landlord-friendly and has been cited as a factor in the stronger rental supply in these provinces relative to highly regulated markets.
Quebec
Quebec has its own rental tribunal (Tribunal administratif du logement) and a complex system of rent oversight. While Quebec does not have a simple percentage cap on rent increases, tenants have strong rights to contest increases they consider excessive through the tribunal process.
