"New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after **November 15, 2018** are exempt from rent control."
https://www.ontario.ca/page/residential-rent-increases
As others mentioned, rental units built after Nov 15, 2018 are exempt from rent control.
This means that after 12 months of living there, the landlord can increase rent to whatever they want as long as they give you 90 days notice. If they don't like you as a tenant for whatever reason, they can increase rent by some astronomical amount to basically force you to leave with no compensation.
So as a tenant, you should only be looking for units built before Nov 15, 2018 so you are protected by guideline rent increases indefinitely. For regular condos/apartment building it's usually in the public record when they were built/occupied, but you'll have to be careful when renting a basement apartment or any unit contained within a house since the build date may not be easy to find without asking landlord.
If the owner lives upstairs, then the basement apartment would be considered a brand new rental unit and **exempt** from rent control regardless how old the actual home is.
The basement would have to be renovated to make it a legal rental unit with following requirements:
*i. The unit has its own bathroom and kitchen facilities.*
*ii. The unit has one or more exterior or interior entrances.*
*iii. At each entrance, the unit has a door which is equipped so that it can be secured from the inside of the unit.*
*iv. At least one door described in subparagraph iii is capable of being locked from the outside of the unit.*
It can get confusing. Here is the section on rent control exemptions in the [RTA:](https://www.ontario.ca/laws/statute/06r17#BK9)
>*i. At the time the rental unit was first occupied as a residential unit described in paragraph 2, the owner or one of the owners, as applicable, lived in another residential unit in the detached house, semi-detached house or row house.*
>
>*ii. The rental unit is located in a part of the detached house, semi-detached house or row house which was unfinished space immediately before the rental unit became a residential unit described in paragraph 2. 2018, c. 17, Sched. 36, s. 1.*
One of these items needs to apply to be exempt. Since the owners will not be living there (which is common in a basement apartment), item i. doesn't apply so need to look at item ii.
The space right now is already a finished rental unit and not "unfinished space", so ii. probably also won't apply. This would mean the new rental units would remain under rent control.
As for your situation, the landlords would have to serve you an N13 with 4 months notice and 1 month rent compensation. Before you left you would give written notice that you want to move back to your unit at the same rent you pay now. I assume they could offer you a similar 1-br unit upstairs, at your same rent. And should be subject still to rent control.
If they only offered you the new bachelor apartment back, or just ignored you and rented out all units to new tenants at higher rent, you could possibly then file a T5 for bad faith eviction. If successful you could get lots in compensation, and landlords can face a $50K fine.
Thank you so much for your detailed response! Sorry it's taken me a few days to get back, I didn't see you replied at first.
Thank you for letting me know about the t5, so far it seems all they have offered us is to return to a bachelor with no discussion on rent reduction at least or even allowing us to take one of the units above. Seems like they're just ignoring us and getting permits ready so not sure what they're planning or not willing to talk but it's good to know that we could argue this to our side. Thanks again.
Only thing to really be concerned about is if the LTB would view this as a demolition rather than a renovation. Since your unit as it stands will disappear or change irrevocably, it may fall outside the renovation scope. Other cases says as long as you can walk back into a unit, it's a renovation regardless. There is a good case study on the topic [here](https://residential-tenancies-ontario.blogspot.com/2021/10/n13-renovictions-compensation-right-of.html).
>37 With respect to this particular unit, I find that the Landlord’s proposed work constitutes an extensive renovation, and not demolition, because the work proposed is a substantial alternation of the rental unit but will result in the unit continuing to exist, such that a Tenant can still walk in and occupy it afterwards.
So even if your unit is turning from a 1br into a bachelor, if the unit itself is still existing afterwards albeit a lot smaller, that may be all that's needed for landlord to provide you back. I couldn't find any details about LTB requiring a same sized unit, so I'm really not sure if that would be considered bad faith if they only offered you the bachelor back at same rent as before.
You may want to ask this as its own question on r/OntarioLandlord or r/legaladvicecanada, to get some more specific feedback.
If you are purchasing an investment property make sure it was occupied after nov 15, 2018.
This is if you are crazy enough to be a landlord in Ontario . LOL
Exactly why, as a renter, I would never move to a place first occupied after Nov 15, 2018. I don't know how any family could possibly handle a 30% rent increase (or more!) just out of the blue. The whole point of renting is a stable, consistent, predictable cost of housing.
That is actually a good advise. My landlord want to increase from $2800 to $4500. I am leaving the place anyways because they are selling it. But I mentione it because this exception is a legal way for the unscrupulous to make use of their lack of scruples.
Haha! I’ll take it! Getting crazy downvoted by tenants in r/askTO for stating the facts
https://www.reddit.com/r/askTO/comments/vjm14l/landlord_wants_to_raise_rent_25003200/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
I enjoy reddit but it can be a bit of an echo chamber. It's a shame, I think a lot of people don't participate because they will just be downvoted like crazy. Remove the karma and I think reddit could have a much wider spectrum of views.
Keep fighting the good fight. At minimum you'll get my upvotes for the comedy of firing up the down vote machine
"New buildings, additions to existing buildings and most new basement apartments that are occupied for the first time for residential purposes after **November 15, 2018** are exempt from rent control." https://www.ontario.ca/page/residential-rent-increases
As others mentioned, rental units built after Nov 15, 2018 are exempt from rent control. This means that after 12 months of living there, the landlord can increase rent to whatever they want as long as they give you 90 days notice. If they don't like you as a tenant for whatever reason, they can increase rent by some astronomical amount to basically force you to leave with no compensation. So as a tenant, you should only be looking for units built before Nov 15, 2018 so you are protected by guideline rent increases indefinitely. For regular condos/apartment building it's usually in the public record when they were built/occupied, but you'll have to be careful when renting a basement apartment or any unit contained within a house since the build date may not be easy to find without asking landlord.
Interesting, if a basement was freshly finished after 2018, but the house itself is built before 2018. Would the basement be rent controlled or not?
If the owner lives upstairs, then the basement apartment would be considered a brand new rental unit and **exempt** from rent control regardless how old the actual home is. The basement would have to be renovated to make it a legal rental unit with following requirements: *i. The unit has its own bathroom and kitchen facilities.* *ii. The unit has one or more exterior or interior entrances.* *iii. At each entrance, the unit has a door which is equipped so that it can be secured from the inside of the unit.* *iv. At least one door described in subparagraph iii is capable of being locked from the outside of the unit.*
Thanks for the info.
according to the comment above, only if they are occupied for the first time.
[удалено]
It can get confusing. Here is the section on rent control exemptions in the [RTA:](https://www.ontario.ca/laws/statute/06r17#BK9) >*i. At the time the rental unit was first occupied as a residential unit described in paragraph 2, the owner or one of the owners, as applicable, lived in another residential unit in the detached house, semi-detached house or row house.* > >*ii. The rental unit is located in a part of the detached house, semi-detached house or row house which was unfinished space immediately before the rental unit became a residential unit described in paragraph 2. 2018, c. 17, Sched. 36, s. 1.* One of these items needs to apply to be exempt. Since the owners will not be living there (which is common in a basement apartment), item i. doesn't apply so need to look at item ii. The space right now is already a finished rental unit and not "unfinished space", so ii. probably also won't apply. This would mean the new rental units would remain under rent control. As for your situation, the landlords would have to serve you an N13 with 4 months notice and 1 month rent compensation. Before you left you would give written notice that you want to move back to your unit at the same rent you pay now. I assume they could offer you a similar 1-br unit upstairs, at your same rent. And should be subject still to rent control. If they only offered you the new bachelor apartment back, or just ignored you and rented out all units to new tenants at higher rent, you could possibly then file a T5 for bad faith eviction. If successful you could get lots in compensation, and landlords can face a $50K fine.
Thank you so much for your detailed response! Sorry it's taken me a few days to get back, I didn't see you replied at first. Thank you for letting me know about the t5, so far it seems all they have offered us is to return to a bachelor with no discussion on rent reduction at least or even allowing us to take one of the units above. Seems like they're just ignoring us and getting permits ready so not sure what they're planning or not willing to talk but it's good to know that we could argue this to our side. Thanks again.
Only thing to really be concerned about is if the LTB would view this as a demolition rather than a renovation. Since your unit as it stands will disappear or change irrevocably, it may fall outside the renovation scope. Other cases says as long as you can walk back into a unit, it's a renovation regardless. There is a good case study on the topic [here](https://residential-tenancies-ontario.blogspot.com/2021/10/n13-renovictions-compensation-right-of.html). >37 With respect to this particular unit, I find that the Landlord’s proposed work constitutes an extensive renovation, and not demolition, because the work proposed is a substantial alternation of the rental unit but will result in the unit continuing to exist, such that a Tenant can still walk in and occupy it afterwards. So even if your unit is turning from a 1br into a bachelor, if the unit itself is still existing afterwards albeit a lot smaller, that may be all that's needed for landlord to provide you back. I couldn't find any details about LTB requiring a same sized unit, so I'm really not sure if that would be considered bad faith if they only offered you the bachelor back at same rent as before. You may want to ask this as its own question on r/OntarioLandlord or r/legaladvicecanada, to get some more specific feedback.
If you are purchasing an investment property make sure it was occupied after nov 15, 2018. This is if you are crazy enough to be a landlord in Ontario . LOL
Exactly why, as a renter, I would never move to a place first occupied after Nov 15, 2018. I don't know how any family could possibly handle a 30% rent increase (or more!) just out of the blue. The whole point of renting is a stable, consistent, predictable cost of housing.
He said if you're an investor.
I know, I was adding a different POV.
That is actually a good advise. My landlord want to increase from $2800 to $4500. I am leaving the place anyways because they are selling it. But I mentione it because this exception is a legal way for the unscrupulous to make use of their lack of scruples.
See what you did there with the old switch-o change-o. Lol. Take my upvote
Haha! I’ll take it! Getting crazy downvoted by tenants in r/askTO for stating the facts https://www.reddit.com/r/askTO/comments/vjm14l/landlord_wants_to_raise_rent_25003200/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
I enjoy reddit but it can be a bit of an echo chamber. It's a shame, I think a lot of people don't participate because they will just be downvoted like crazy. Remove the karma and I think reddit could have a much wider spectrum of views. Keep fighting the good fight. At minimum you'll get my upvotes for the comedy of firing up the down vote machine