Rent Control in Ontario Retirement Homes: What You Need to Know

Nov 25

3 min read

If you're thinking about moving to a retirement home, you've probably got a lot on your plate. One thing that might not be top of mind—but should be—is how rent works. Rent control can make a big difference in what you’ll pay down the road, and there are some tricky bits to watch out for. Let’s break it down in a way that makes sense.

So, What’s the Deal with Rent Control?

In Ontario, rent control is like a safety net for renters. It limits how much landlords can raise your rent every year. Here’s the scoop:

If the retirement home you’re eyeing was first lived in before November 15, 2018, your rent increases are likely capped. For 2024, that cap is 2.5%.
If it was built after that date, the home might not have rent control, meaning bigger rent hikes could be in your future.

Sounds simple, right? But there’s more to the story.

Two Retirement Homes, Two Very Different Costs

Let’s look at two examples to see how rent control plays out in real life.

The Non-Rent-Controlled UnitImagine you start out paying $4,000/month, but because there’s no rent control, your rent increases by an average of 7.5% every year. Over 15 years, that $4,000 can skyrocket to $11,784/month. Ouch!
The Rent-Controlled UnitNow let’s say you’re in a rent-controlled unit with the same $4,000/month starting rent. With a more modest 2% annual increase, after 15 years, your rent rises to about $5,396/month. Big difference, right?

Rent control can make long-term costs much more predictable, but—spoiler alert—it’s not the whole picture.

The Sneaky Part: Service Fees

Here’s the catch: Retirement homes often bundle services like meals, housekeeping, or nursing care into your monthly bill. While your rent might be locked into those government rules, the service fees are a whole different story. These fees aren’t regulated, so they can climb at a much faster rate.

For example:

Your rent increase might be 2%, but fees for care services could jump by 5–10% each year.
Over time, those fee hikes can really add up, and suddenly, your "affordable" rent-controlled unit feels a lot less manageable.

What to Ask Before You Move In

To avoid surprises, here are some questions you should ask:

Is this unit rent-controlled? If not, find out how often and by how much rents have been raised in the past.
What services are included in the rent? Be clear on what’s covered and what comes with an extra fee.
How are service fees handled? Are there separate contracts for services? How much have those fees increased in previous years?

Being informed now can save you from nasty surprises later.

Planning Ahead

Choosing a retirement home is a big decision. It’s not just about the rent; it’s about the whole package—services, costs, and how these fit into your life and budget long term. Take the time to ask questions, read the fine print, and maybe even bring a family member or advisor along to help you make sense of it all.

Need Some Help?

Moving to a retirement home is about more than finding the right place—it’s about making sure it works for your lifestyle and finances. That’s where we come in. At Navigate Realty Co., we’ve helped seniors and their families make informed choices about downsizing and retirement living.

If you’re ready to take the next step, reach out today! We’re here to make the process smooth and stress-free.