Wide Reching Impacts
for landlords and tenants in ontario
New Legislation Bill 60 for Landlords and Tenants in Ontario: A 2025 Overview
In 2025, Ontario introduced a significant overhaul to its rental housing laws through Bill 60, which aims to balance the interests of both landlords and tenants. The bill brings forward changes designed to modernize the rental market, improve tenant protections, and provide greater clarity on landlord responsibilities. The legislation’s main goal is to create a fairer, more transparent rental market in Ontario while addressing growing concerns around affordability and housing availability.
Here's a breakdown of the key provisions and what they mean for both landlords and tenants.
1. Rent Control and Increase Guidelines
Under Bill 60, rent control remains a central focus, but with new adjustments to how increases are calculated. In Ontario, the standard annual rent increase is capped based on the Consumer Price Index (CPI), but Bill 60 adds new conditions and stricter enforcement.
Annual Rent Increase Cap: For most rental units, the maximum allowable increase will be tied to inflation, with the cap now set at 2.5% per year (down from the previous 3% in earlier guidelines). The idea is to protect tenants from excessive rent hikes while giving landlords the ability to cover increased operating costs.
Exemptions for New Construction: For newly built units (under construction after 2023), the exemption from rent control for the first 5 years has been retained, meaning landlords can charge market rates during this period. After 5 years, rent increases will be subject to the same CPI-based rules.
Rent Freeze During Renovations: One notable change is the introduction of a rent freeze during major renovations that require a tenant to vacate the unit. This ensures that tenants are not burdened by double costs (i.e., paying rent for an old unit and a new one) during extensive repairs.
2. Tenant Protection Against Evictions
One of the most controversial aspects of the new legislation is the tightening of rules around eviction procedures.
Evictions for Renovations: Previously, some landlords used renovations as a way to evict tenants and then re-rent the unit at a higher price. Bill 60 now mandates that if a tenant is asked to vacate due to renovation, the landlord must pay relocation compensation that covers 3 months of rent and moving expenses. This aims to discourage landlords from using renovations as a loophole for rent increases.
Emergency Evictions: In cases of urgent need (e.g., non-payment of rent or severe damage to the property), the eviction process has been streamlined but remains highly regulated. Tenants will now receive 60 days’ notice, and landlords must provide proof of hardship before applying for eviction.
"No Cause" Evictions Banned: Landlords can no longer evict tenants without cause, meaning they must provide a reason for ending the tenancy. “No cause” evictions were previously used in cases where landlords simply wanted to take advantage of rising rental market prices.
Tenant Representation at Tribunals: Bill 60 expands tenant rights in Landlord and Tenant Board (LTB) hearings. Tenants can now access free legal counsel through a government-funded service, ensuring that they have adequate representation when facing eviction or disputes with landlords.
3. Landlord and Tenant Communication Requirements
One of the more practical aspects of Bill 60 is the introduction of mandatory communication protocols between landlords and tenants, aimed at reducing misunderstandings and disputes.
Written Notice Requirements: Landlords must provide written notice for any significant change in terms (like rent increase or lease renewal). This includes a minimum 90-day notice before any rent increase, up from the previous 60-day requirement.
Tenant Maintenance Requests: Landlords are now legally required to acknowledge tenant maintenance requests within 5 business days, and a timeline for completion must be set. This is part of ensuring that tenants live in habitable conditions and have recourse if maintenance is neglected.
4. Affordable Housing Fund and Incentives for Landlords
A significant portion of the bill focuses on encouraging the construction of affordable rental units.
Affordable Housing Fund: Ontario will create an Affordable Housing Fund which will offer grants and subsidies to private landlords and developers who build or convert properties into affordable rental units. This move is intended to incentivize the construction of new rental properties in light of the province's growing housing crisis.
Tax Credits for Green Renovations: To address environmental concerns, the bill includes tax incentives for landlords who make eco-friendly upgrades to their rental units, such as installing energy-efficient appliances or retrofitting buildings to meet green standards.
5. Tenant Rights to Pets
One of the more controversial provisions of Bill 60 is the right of tenants to own pets in rental properties. While pet ownership has often been a point of contention in rental agreements, the new legislation stipulates that:
Pets Allowed in Most Units: Landlords cannot outright ban pets in residential units unless the property is explicitly designated as pet-free (e.g., for health or safety reasons). Landlords can, however, charge an additional pet deposit of up to one month's rent to cover potential damages.
Exemptions for Certain Types of Housing: Pet restrictions are still allowed in certain types of housing, like senior residences or properties with shared living spaces (e.g., dormitories or co-ops), where the risk of allergies or other health concerns may be more significant.
6. Tenant Engagement and Support Services
To address the broader issue of housing stability, Bill 60 places an emphasis on tenant education and engagement.
Tenant Advocacy Support: A portion of the legislation allocates funding to non-profit organizations that provide tenant education and support services. This will help tenants understand their rights and responsibilities, reducing the number of disputes that escalate into legal battles.
Rent Subsidies and Housing Access: The provincial government will expand access to rent subsidies for low-income renters. This is particularly targeted at helping renters in urban centers where rental prices have outpaced wage growth.
Conclusion: A Step Toward Fairer Housing
Bill 60 represents a significant shift in Ontario’s approach to rental housing. For tenants, it promises better protections against unjust evictions, rent hikes, and substandard living conditions. For landlords, it introduces clearer rules around rent control, eviction procedures, and maintenance obligations, ensuring that the rental market remains functional and fair.
While the bill brings much-needed reforms, its full impact will only be seen over time as both parties adapt to the changes. Tenants and landlords alike will need to stay informed about the evolving legal landscape to ensure they are meeting their rights and responsibilities under the new legislation.