Toronto Property Management Laws & Updates for 2026: What Landlords Need to Know

As we move into 2026, Toronto property management laws continue to evolve, making it essential for landlords to stay informed about their legal responsibilities. Whether you're a first-time landlord or a seasoned investor, understanding the latest updates in the law can help you avoid costly mistakes, stay compliant, and create a positive experience for your tenants.

This blog outlines the most important property management laws and updates that every Toronto landlord should be aware of in 2026.

Key Updates in Toronto Property Management Laws

1. Residential Tenancies Act (RTA) Updates

The Residential Tenancies Act (RTA) governs the relationship between landlords and tenants in Ontario, and 2026 brings some notable changes:

• Rent Increase Guidelines: As of 2026, Ontario's rent increase guideline is set at 2.5% for most residential units. This rate is subject to change yearly and must be adhered to when increasing rent. Landlords should be aware of dates for rent increases and follow the RTA's notice requirements to avoid legal disputes.

• Rent Freeze for New Construction: New rules have been proposed to freeze rents for the first few years after a newly built residential building is completed. This is to prevent large rent hikes on newly constructed units.

• Eviction Protection for Vulnerable Tenants: In 2026, new protections are being introduced for vulnerable tenants, including seniors and people with disabilities, to prevent unjust evictions. Landlords must comply with these protections to avoid legal repercussions.
  

2. Landlord-Tenant Board (LTB) Process Changes

The Landlord and Tenant Board (LTB) has made several updates that affect eviction processes and dispute resolution. As the LTB faces delays due to high demand, landlords should be prepared for longer wait times for hearings and decisions.

• Online Hearing Option: Landlords can now request virtual hearings for certain types of disputes, making it easier to manage cases without needing to appear in person.

• Enforcement of Eviction Orders: For eviction orders, landlords must understand the updated enforcement procedures. Tenants who refuse to leave will be subject to a Sheriff’s enforcement process, which may involve additional legal costs and delays.

• Early Mediation: The LTB is encouraging mediation in tenant disputes, allowing landlords and tenants to resolve issues outside of formal hearings. This can be a quicker and more cost-effective option for landlords.
  

3. New Smoke-Free Housing Policies

Starting in 2026, the Ontario government is moving forward with smoke-free housing policies. The policies will apply to rental properties, including those in multi-unit buildings.

• No Smoking in Common Areas: Landlords can no longer allow smoking in common areas, including hallways, stairwells, and lobbies. Property managers will need to ensure that tenants adhere to these regulations.

• Designated Smoking Areas: Landlords can designate specific areas for smoking, but they must ensure these areas are outside the building, away from windows and ventilation systems, and comply with local bylaws.
  

4. Tenant Rights and Privacy Updates

Privacy laws are becoming more stringent in Ontario, and 2026 brings changes regarding tenant rights and how landlords manage personal information:

• Tenant Consent for Personal Data: Landlords will need explicit consent to collect and share tenant personal data, including financial records, for credit and background checks.

• Increased Disclosure for Rental Agreements: New rules now require landlords to provide more detailed disclosures on rental agreements, particularly around rent payment policies, maintenance responsibilities, and notices for rent increases or lease terminations.
  

Best Practices for Staying Compliant with Property Management Laws

1. Keep Up with Changes

Stay updated on all property management laws by checking official government websites, legal advisory platforms, and connecting with a professional property management service.

2. Communicate Clearly with Tenants

Transparency is key to good tenant relationships. Always inform your tenants about their rights and your responsibilities as a landlord. If there are any changes in the lease agreement or rent increase procedures, make sure to provide written notice well in advance.

3. Use a Professional Lease Agreement

Make sure your lease agreements comply with the Ontario Standard Lease format and reflect any new regulations. Your lease should cover topics like rent payment terms, tenant maintenance duties, and eviction procedures.

4. Invest in Professional Property Management Services

Navigating the complexities of property management laws can be difficult, especially as new regulations come into play. Working with a professional property management service like Turnkey Property Management (https://www.turnkeyrentalmanagement.com/) can save you time, money, and legal headaches.

Final Thoughts

As a Toronto landlord, it’s crucial to stay informed about property management laws and updates. Understanding the Residential Tenancies Act, tenant rights, and the Landlord and Tenant Board processes will help you protect your investment and avoid unnecessary risks.

For more support with your property management needs and to ensure full compliance with the latest laws, visit Turnkey Property Management — we offer professional services to help landlords manage their properties with ease.

FAQs for Toronto Landlords

1. Can I increase rent more than the guideline in Toronto? No. Rent increases must follow the Ontario rent increase guideline unless you apply for an exemption under certain circumstances (e.g., significant renovations).

2. How do I handle eviction in Ontario? Eviction requires following the proper LTB process. Ensure you provide written notice and meet legal timelines before seeking an eviction order.

3. Can I refuse to rent to someone based on credit history? You can screen tenants based on credit history, but you must apply the same criteria to all applicants to avoid discrimination.

4. What are my responsibilities as a landlord for property maintenance? Landlords are responsible for keeping the rental property in good repair and ensuring it meets health and safety standards.

5. Should I hire a property manager in Toronto? If you're new to renting or have multiple properties, hiring a property manager helps you stay compliant with laws and saves time.