Why Landlords Should Consider Investing in Non-Rent-Controlled Buildings in Ontario

Investing in rental properties can be a lucrative way to build long-term wealth, but not all properties are created equal—especially in Ontario, where some buildings fall under rent control while others do not. For landlords looking to expand their portfolio, non-rent-controlled buildings offer unique advantages that can lead to higher returns and greater flexibility. However, there are also risks to consider.

If you’re a real estate investor thinking about your next move, here’s what you need to know before buying a non-rent-controlled property.

What is a Non-Rent-Controlled Building?

In Ontario, rental units in buildings first occupied on or after November 15, 2018, are exempt from rent control. This means landlords are not restricted by the provincial rent increase guidelines and can adjust rent based on market conditions rather than government-imposed limits.

Pros of Investing in a Non-Rent-Controlled Property

✅ Unlimited Rent Increases – Unlike older, rent-controlled properties, you can raise rent without restrictions once a tenant’s lease term ends. This allows you to keep up with inflation and market demand.

✅ Higher Revenue Potential – With the ability to adjust rents freely, landlords can maximize cash flow, especially in high-demand rental markets.

✅ Increased Property Value – Properties with stronger income potential often appreciate faster, making them a great investment for long-term gains.

✅ Attracting High-Quality Tenants – Many non-rent-controlled buildings are newer and offer modern amenities, which can attract professionals and long-term renters willing to pay premium prices.

Cons of Investing in a Non-Rent-Controlled Property

⚠️ Tenant Turnover Risks – Since rents can increase substantially, some tenants may choose to leave, leading to higher vacancy rates and turnover costs.

⚠️ Market Dependency – Rent control provides a level of stability, whereas non-rent-controlled units are subject to market fluctuations. If the rental market slows down, you may need to adjust your strategy to keep units occupied.

⚠️ Public Perception & Tenant Pushback – Some renters are wary of non-rent-controlled buildings due to the risk of unpredictable rent hikes. Having a clear and competitive pricing strategy will be key to maintaining occupancy.

Is Investing in a Non-Rent-Controlled Building Right for You?

If you’re an investor looking for higher rental income, greater flexibility, and long-term appreciation, non-rent-controlled buildings can be a smart addition to your portfolio. However, it’s important to have a solid tenant management strategy and keep an eye on market trends to balance risk and reward.

At Ana Bastas Realty, we help investors identify high-potential properties and develop strategies for maximizing returns. Whether you're purchasing your first rental or expanding your portfolio, we provide expert guidance every step of the way.

👉 Thinking about investing in a non-rent-controlled building? Contact us today to explore your options!