Renting in a Non-Rent-Controlled Building in Ontario: What Tenants Need to Know

Finding the perfect rental home in Ontario can be an exciting yet overwhelming experience, especially when it comes to understanding the difference between rent-controlled and non-rent-controlled buildings. If you’re considering renting in a non-rent-controlled building, it’s crucial to understand how it works, what questions to ask your realtor, and the potential risks and benefits.

What is a Non-Rent-Controlled Building?

In Ontario, buildings first occupied on or after November 15, 2018, are exempt from rent control under current legislation. This means that while your rent is protected for the duration of your lease, once your lease expires, your landlord can increase your rent by any amount they choose—without being limited by Ontario’s annual rent increase guideline.

Pros of Renting in a Non-Rent-Controlled Building

✅ Newer Units & Modern Amenities – These buildings are typically newer and offer updated finishes, better energy efficiency, and modern amenities like gyms, co-working spaces, and smart home features.

✅ More Availability & Less Competition – Since many renters prefer the security of rent-controlled units, you may have more options and less competition when applying.

✅ Incentives & Promotions – Some landlords offer move-in incentives, such as free rent for a month or reduced deposits, to attract tenants.

Cons of Renting in a Non-Rent-Controlled Building

⚠️ Potential for Significant Rent Increases – After your initial lease term, your rent could increase substantially without restriction, making it harder to predict long-term affordability.

⚠️ Less Stability for Long-Term Tenants – If rent increases become too high, you may need to move frequently, which can be disruptive and costly.

⚠️ Limited Negotiation Power – Unlike rent-controlled buildings, where increases must follow guidelines, landlords in non-rent-controlled buildings have more flexibility, making it harder to push back on rent hikes.

What to Ask Your Realtor Before Renting in a Non-Rent-Controlled Building

Before signing a lease, ask your realtor these key questions to ensure you make an informed decision:

🔹 Is this building rent-controlled? (Confirm the first occupancy date to be sure)
🔹 Has the landlord raised rents significantly in the past? (Your realtor may have insight into past trends)
🔹 What is the average market rent increase in this area? (Compare with other similar properties)
🔹 Are there any incentives for signing a longer lease? (Some landlords may offer better terms for multi-year leases)
🔹 What are my rights as a tenant if the rent increases significantly? (Understanding your legal options is essential)

Final Thoughts: Is a Non-Rent-Controlled Unit Right for You?

Non-rent-controlled units can be a great choice if you value modern living spaces and are comfortable with potential rent fluctuations. However, if long-term affordability and stability are your top priorities, a rent-controlled unit might be the better option.

At Ana Bastas Realty, we help tenants find the right rental that fits their budget and lifestyle—while ensuring they understand the full picture before signing a lease. Whether you're looking for a rent-controlled or non-rent-controlled unit, we’re here to guide you every step of the way.

👉 Need help finding the perfect rental? Contact us today!