An Ontario residential landlord can charge anything they want to a new tenant initially.
How much they can raise the monthly rent thereafter depends on the age of the property.
Ontario residential rent control law states that for properties built prior to November 1, 1991, a landlord can't raise the rent any more than the percentage guideline in the Ontario Residential Tenancies Act (RTA). This rate changes yearly but is usually around 2%.
A landlord can apply for an exception to this guideline, but only if certain types of improvements are made. Exceptions are seldom granted.
However, properties built after November 1, 1991 are exempt from
rent control. Landlords can raise rents on these newer properties as
much they want with their current tenants. Therefore, considering the
strong Toronto real estate market, investment properties built after
1991 can be a considerably better investment than older properties.
The
Residential Tenancies Act (RTA) heavily favours tenants over landlords.
To build your investment portfolio, it's critical you are well informed
on the RTA, or at least that you know a good real estate consultant who
can advise you about property investing.
Not being well informed on the RTA can expose you to heavy fines and litigation from buyers and sellers.
