Bill 82, Protecting Renters from Unfair Above Guideline Rent Increases Act, 2026
Chamber
ontario
Stage
Introduced
This Ontario bill restricts when landlords can apply for above-guideline rent increases, especially for capital expenditure projects.
Key Changes
- Landlords must submit engineering or professional reports and detailed evidence with above-guideline increase applications tied to capital expenditures
- Cosmetic upgrades, routine maintenance, and repairs caused by landlord negligence are explicitly excluded from qualifying as eligible capital expenditures
- The LTB must consider tenant income, local vacancy rates, and housing availability when assessing above-guideline applications, and can dismiss applications that would cause undue hardship
- Costs from non-arm's-length transactions and government-subsidized work cannot be counted when calculating the approved rent increase amount
- The threshold for the LTB to pause or dismiss applications due to landlord obligation violations is lowered from 'serious breach' to simply 'breach'
- Landlords must give 30 days' notice before a rent reduction takes effect, and must repay 1.5 times any overpayment if they fail to do so
Gotchas
- The bill includes a transition clause: applications filed before the bill comes into force will continue under the old rules, meaning existing applications are not affected
- The bill comes into force four months after Royal Assent, giving landlords and the LTB time to adjust to the new requirements
- The definition of 'arm's length transaction' is left to regulations, meaning a key concept in the bill will be defined outside the legislation itself
- The 1.5x overpayment reimbursement penalty applies only when the landlord fails to give notice — tenants must still be occupying the unit on the reduction date to benefit from the rent decrease
- Lowering the breach threshold from 'serious breach' to 'breach' could make it easier for the LTB to pause or dismiss landlord applications, potentially affecting landlords who have minor compliance issues
Who's Affected
- Ontario residential tenants subject to above-guideline rent increase applications
- Residential landlords and property management companies in Ontario
- The Landlord and Tenant Board (LTB), which must apply new assessment criteria
- Tenants in lower-income households or tight rental markets who may face hardship from rent increases
Vibes
0 responses
Gotchas
- The bill includes a transition clause: applications filed before the bill comes into force will continue under the old rules, meaning existing applications are not affected
- The bill comes into force four months after Royal Assent, giving landlords and the LTB time to adjust to the new requirements
- The definition of 'arm's length transaction' is left to regulations, meaning a key concept in the bill will be defined outside the legislation itself
- The 1.5x overpayment reimbursement penalty applies only when the landlord fails to give notice — tenants must still be occupying the unit on the reduction date to benefit from the rent decrease
- Lowering the breach threshold from 'serious breach' to 'breach' could make it easier for the LTB to pause or dismiss landlord applications, potentially affecting landlords who have minor compliance issues
Summary
In Ontario, landlords can normally only raise rent by a set annual guideline amount, but they can apply to the Landlord and Tenant Board (LTB) for a higher 'above guideline' increase if they've made major capital improvements to the building. Bill 82 tightens the rules around these applications by requiring landlords to submit professional reports and detailed evidence proving the work was truly necessary — not just cosmetic or routine maintenance. It also blocks certain types of work from qualifying at all, such as luxury upgrades, regular upkeep, or repairs needed because the landlord neglected their own legal duties. The bill gives the LTB new tools to protect tenants from financial hardship. The Board must now consider how much of a tenant's income already goes to rent, local vacancy rates, and how hard it would be for tenants to find other housing. If the Board decides an increase would cause undue hardship, it can dismiss the application. Costs from non-arm's-length transactions (e.g., deals between related parties) and government-funded work cannot be included when calculating the increase amount. The bill also adds a new tenant protection around rent reductions. When an above-guideline increase tied to capital work eventually expires, landlords must give tenants at least 30 days' notice before the rent goes back down. If a landlord fails to give this notice and the tenant overpays, the landlord must repay 1.5 times the overpaid amount as a penalty.
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Vibes
0 responses
Recorded Votes
| Date | Description | Yeas | Nays | Result |
|---|---|---|---|---|
| Mar 26, 2026 | Second Reading of Bill 82, An Act to amend the Residential Tenancies Act, 2006 with respect to above guideline rent increases. | 36 | 68 | Negatived |