Protecting Renters from Unfair Above Guideline Rent Increases Act, 2026

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The Act amends the Residential Tenancies Act, 2006 with respect to above guideline rent increases. The amendments require landlords to provide additional reports and evidence with any application they make to the Landlord and Tenant Board for an above guideline increase that is due in whole or in part to an eligible capital expenditure. The amendments also establish new exceptions for capital expenditures that cannot be the subject of an above guideline increase, including expenditures related to specified cosmetic work, certain routine or ordinary work and work that arises as a result of a failure of the landlord to comply with specified obligations. The Board is required to consider certain considerations relating to the potential effect on affected tenants. The Board may, after considering these factors, determine that an above guideline increase would impose undue hardship on the affected tenant or tenants and dismiss the application. When determining the amount of an above guideline increase, the Board shall not include any costs the landlord incurs or is expected to incur in a non-arm’s length transaction and any amounts for which the landlord has received specified financial assistance from any level of government. Currently, subsection 126 (12) effectively authorizes the Board to dismiss or pause applications in cases of “serious breaches” of certain landlord obligations. The amendments replace the concept of a “serious breach” with the concept of a “breach” of these obligations. Section 129 is amended to add a new requirement for landlords to provide notice to the tenant of the date on which their rent will be reduced if an above guideline increase has been approved. If notice is not given and if the tenant overpays, the landlord is required to reimburse the tenant for 1.5 times the amount of the overpayment.