Ontario Landlord & Tenant Law 2026: What Bill 60 & Bill 97 Change for Toronto Landlords
Two pieces of Ontario legislation — Bill 60 and Bill 97 — came into effect on July 1, 2026, making meaningful changes to the Residential Tenancies Act and the rules governing landlord-tenant relationships across Ontario, including Toronto. For landlords managing rental properties in the 416, understanding what changed — and what your obligations and rights are under the updated rules — is not optional. This guide summarizes the key changes introduced by each bill, what they mean for Toronto landlords in practical terms, and where to find additional detail on the rules that apply to your specific situation.
Context: Why These Changes Matter
Ontario's landlord-tenant framework has been under pressure for years — from a persistent backlog at the Landlord and Tenant Board (LTB), to ongoing debates about rent control, to conflicts around eviction procedures and bad-faith terminations. Bill 60 and Bill 97 represent the Ontario government's latest attempt to address some of these pressures, with changes affecting LTB procedures, rent increase rules, eviction processes, and landlord obligations. Some changes favour landlords; others create new obligations or protections for tenants.
Key Changes from Bill 60
Bill 60 (which built on the foundation of earlier housing reform legislation) introduced several procedural and substantive changes to the Residential Tenancies Act effective July 1, 2026. The following are among the most significant for Toronto landlords.
LTB process changes: Bill 60 includes provisions intended to reduce the LTB backlog that has plagued landlords and tenants alike — with hearings taking months or years in some cases. These include changes to how certain application types are processed and expanded use of written hearings for straightforward matters. The practical impact on wait times in Toronto will become clearer as the changes take effect.
Landlord compensation provisions: strengthened provisions for landlord compensation in cases where tenants are found to have misrepresented their situation or have caused significant damage. These changes make it more straightforward for landlords to recover verified losses through the LTB process.
Notice periods and forms: updated notice requirements and prescribed forms accompany the legislative changes. Landlords must use the correct, current Landlord and Tenant Board forms — using outdated forms can invalidate an application or notice. Always obtain current forms directly from the LTB website.
Key Changes from Bill 97
Bill 97 introduced further amendments to the RTA with a focus on balancing landlord and tenant rights in specific areas that had generated significant conflict under prior rules.
N12 (Own Use) and N13 (Demolition/Renovation) evictions: Bill 97 includes changes to the process and documentation requirements for N12 (landlord's own use) and N13 (demolition or major renovation) evictions, which have been among the most litigated and abused termination grounds under the RTA. Changes include enhanced compensation requirements and clearer documentation standards designed to reduce bad-faith applications while preserving legitimate landlord rights.
Rent increase guideline interaction: the rent increase guideline — which caps annual rent increases for most tenanted units subject to rent control — continues to apply under the updated rules, with the applicable percentage announced annually by the province. Confirm the current guideline with the LTB before issuing any rent increase notice.
Tenant information requirements: updated requirements for information landlords must provide to tenants at lease commencement, including updated standard lease provisions. The Standard Lease (Form LTB-1) is mandatory for most residential tenancies in Ontario — failing to provide it gives tenants certain rights under the RTA, including the ability to withhold one month's rent until it is provided.
What Hasn't Changed: Key Ongoing Rules for Toronto Landlords
Rent control still applies to most units built before November 2018: units that were first occupied for residential purposes before November 15, 2018, remain subject to rent increase guideline limits. Units first occupied after that date are exempt from guideline limits but still subject to other RTA rules.
You cannot unilaterally evict a tenant: landlords in Ontario cannot remove a tenant without a valid notice ground, a successful LTB application (if the tenant disputes), and — in many cases — an LTB order and Sheriff enforcement. Self-help eviction (changing locks, removing belongings, shutting off utilities) is illegal and can expose a landlord to significant liability.
The Standard Lease is mandatory: all new residential tenancies in Ontario must use the government's Standard Form of Lease. Addendums that attempt to override RTA rights are unenforceable, even if a tenant signs them.
Last month's rent deposit rules remain: landlords can collect a last month's rent deposit at the start of a tenancy, but cannot collect a security deposit or damage deposit under the RTA. The last month's deposit must be kept in a designated account and interest accrues on it annually.
Practical Steps for Toronto Landlords
Review your existing leases against the updated rules: any clauses that conflicted with the prior RTA also conflict with the updated rules — and some new requirements may apply to leases entered into after July 1, 2026.
Use only current LTB forms: form versions change with legislative amendments. Download forms directly from the LTB website immediately before using them — don't rely on forms you saved months ago.
Document everything: maintaining thorough records of rent payments, communications with tenants, maintenance requests and responses, and any notices served is essential for any LTB application. Date-stamped written records are far more effective than verbal recollections.
Consult a paralegal or lawyer for contested matters: the LTB process has significant procedural complexity. For any application involving a contested eviction, significant arrears, or alleged bad-faith conduct, professional representation is worth the cost.
Frequently Asked Questions
Does rent control apply to my investment condo in Toronto?
It depends on when the unit was first occupied for residential purposes. Units first occupied before November 15, 2018, are subject to the annual rent increase guideline. Units first occupied after that date — which includes most newer pre-construction condos — are exempt from the guideline, meaning landlords can increase rent by any amount between tenancies, though all other RTA rules still apply during an existing tenancy.
What is the current Ontario rent increase guideline for 2026?
The rent increase guideline is set by the province annually and published each year. Verify the current applicable percentage directly with the Landlord and Tenant Board or at Ontario.ca — this guide does not confirm a specific 2026 figure, as it should be confirmed at the time you intend to issue a rent increase notice.
How do I properly serve a rent increase notice?
Rent increases require proper written notice using the LTB's prescribed N1 form, served at least 90 days before the increase takes effect, for tenants on month-to-month agreements. Increases must respect the applicable rent increase guideline for rent-controlled units. Always use the current version of the form obtained directly from the LTB website.
This guide is for general informational purposes only and does not constitute legal advice. Landlord-tenant law is complex and changes frequently — always consult a licensed paralegal or lawyer experienced in Ontario residential tenancy law before taking action in any landlord-tenant matter.
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