Last updated July 2026 – Owning a rental property in Ontario has always required more than collecting rent and maintaining a building. Investors are operating within a detailed legal framework, and in 2026, several important changes are affecting how landlords and tenants navigate disputes, repayment agreements, air conditioners and Landlord and Tenant Board procedures.

Some of these changes trace back to Bill 97, the Helping Homebuyers, Protecting Tenants Act, 2023, which received Royal Assent on June 8, 2023. Others arise from Bill 60, the Fighting Delays, Building Faster Act, 2025.

That distinction is important.

Although Bill 97 became law in 2023, not every provision took effect immediately. Some changes came into force on July 1, 2026, while the Landlord and Tenant Board has confirmed that additional changes connected to Bills 60 and 97 are expected in September 2026.

For Ontario real estate investors, the practical message is straightforward: old forms, old timelines and old assumptions can create real risk.

Here is what landlords, investors and tenants should understand.

1. The Deadline to Request a Review of an LTB Order Is Now Shorter

Effective July 1, 2026, the timeline to request a review of a Landlord and Tenant Board order was reduced from 30 days to 15 days.

This is a significant procedural change.

For investors, it means there is less time to react after an unfavourable or potentially flawed order. A landlord who believes the LTB made a serious error cannot assume there is a full month to review the decision, gather information and determine next steps.

The same shorter timeline also matters to tenants. A tenant challenging an order must also act more quickly.

The investor takeaway

Treat every LTB order as time-sensitive the moment it is received. Have a process for:

• recording the date the order was issued and received
• reviewing it promptly
• obtaining legal advice quickly where necessary
• preserving supporting documents and evidence

This is not an area where a document should sit unread in an inbox for two weeks.

There are also related procedural changes involving certain Above Guideline Increase applications. According to the LTB, where a landlord is directed to serve tenants with an AGI order, the deadline for service has been reduced from 14 days to 7 days from issuance, and the related certificate of service must be submitted within the revised timeframe.

2. Payment Agreements Now Require More Care

Effective July 1, 2026, the LTB’s Payment Agreement Form became mandatory when parties enter into a repayment plan under section 206 of the Residential Tenancies Act.

For landlords, this is more important than it may initially sound.

Payment plans are often used when a tenant has fallen behind but both sides want to avoid an immediate eviction. A landlord may reasonably prefer repayment over vacancy, turnover costs, legal proceedings and the uncertainty of finding a new tenant.

But an informal agreement by text message or email should not automatically be assumed to satisfy the formal requirements of the LTB process.

The investor takeaway

When rent arrears are being resolved through an agreement connected to an LTB proceeding, documentation matters. Investors and property managers should ensure they are using the current required form and following the applicable process.

The tenant perspective

This change can also provide greater clarity for tenants. A formal repayment agreement should make the amount owing, payment schedule and expectations easier to understand.

That does not eliminate financial hardship, but clearer documentation may reduce disputes about what was actually agreed to.

For both sides, the broader lesson is the same: do not rely casually on a handshake, text thread or outdated template when the agreement has legal consequences.

3. New Air-Conditioner Rules Matter More Than Many Investors Realize

As of July 1, 2026, Ontario has specific rules dealing with tenant-installed window and portable air conditioners.

Where a landlord does not provide air conditioning, a tenant may install their own qualifying window or portable unit if the legal conditions are met.

According to current LTB guidance, those conditions include requirements such as:

• notifying the landlord in writing before installation
• providing available energy-efficiency and intended-use information where electricity is included in the rent
• ensuring the unit does not damage the rental property
• installing and operating it safely and securely
• complying with applicable municipal property standards and other laws

Where the tenant satisfies the statutory conditions, the LTB states that the tenant may have the right to install and use the air conditioner even where the tenancy agreement says air conditioners are not permitted or the landlord objects.

That is an important shift for investors who have historically relied on blanket lease restrictions.

What about electricity costs?

Where electricity is included in the rent, and there is no agreement preventing an increase for air-conditioner use, the landlord may be able to charge a seasonal rent increase for the electricity used by a qualifying tenant-installed air conditioner.

However, this is not a licence to impose an arbitrary summer surcharge.

The LTB states that the increase cannot exceed the actual electricity cost of operating the unit. Where the actual amount cannot be determined, a reasonable estimate may be used based on factors such as the unit’s energy efficiency and intended usage.

The increase can apply only during the months the air conditioner is being used.

The investor takeaway

Landlords should review:

• leases that include electricity
• existing blanket air-conditioner prohibitions
• building-specific installation and safety concerns
• procedures for receiving written tenant notices
• how electricity costs will be documented and calculated

The contrarian point here is that this is not simply another restriction on landlords. A clear statutory process may actually be better than the uncertainty that previously surrounded portable and window units in many tenancies.

But only if landlords understand and follow the new rules.

The tenant perspective

Tenants gain a clearer pathway to cooling their homes, particularly during periods of extreme summer heat. At the same time, the right is not unlimited. Installation must still be safe, lawful and non-damaging, and tenants may face a legitimate seasonal cost where the landlord pays for electricity.

4. Maximum Fines for RTA Offences Have Increased Substantially

The maximum fines for offences under section 236 of the Residential Tenancies Act increased effective July 1, 2026.

The new maximums are:

• $100,000 for an individual, up from $50,000
• $500,000 for a corporation, up from $250,000

These are maximum fines for prosecuted offences and should not be confused with every remedy, administrative fine, cost award or compensation order available through the LTB.

Still, the increase sends a clear message.

The investor takeaway

Treating Ontario’s residential tenancy rules as optional is an increasingly expensive risk.

Professional investors should have written processes for matters such as:

• legal entry into rental units
• maintenance and repair requests
• notices of termination
• rent increases
• tenant communications
• documentation
• handling arrears
• property management oversight

This is especially important for incorporated landlords and investors who own multiple units.

A growing portfolio without stronger compliance systems can create more risk, not simply more income.

5. Changes to Final Order Reviews Are Also in Effect

The LTB has also updated the circumstances in which a final order may be reviewed.

For an investor, this reinforces a larger point: LTB strategy should not begin after a hearing goes badly.

Good records, proper notices, organized evidence and legally appropriate communication should be built into the management of the tenancy from the beginning.

The same principle benefits tenants. Both parties are better served when the evidence is clear and the process is followed properly.

What Is Still Coming in September 2026?

This is an area where investors need to pay particularly close attention.

As of July 7, 2026, Tribunals Ontario has confirmed that additional legislative changes outlined in Bills 60 and 97 are expected to take effect in September 2026. The LTB has also stated that further information will be provided as it becomes available.

One significant date already reflected in Ontario’s current Residential Tenancies Act is September 21, 2026.

Among the upcoming issues investors should be watching are changes affecting certain landlord own-use termination situations and other eviction-related procedures.

Landlord own-use evictions

Ontario’s evolving rules include changes relevant to notices where a landlord, purchaser or qualifying family member requires a rental unit for residential occupation.

A particularly important upcoming change is tied to compensation requirements and longer notice periods in certain own-use situations.

For investors, this deserves careful attention because an N12 notice is not simply a tool for recovering possession of a property. It is a formal legal process subject to statutory requirements, good-faith obligations and potentially serious consequences when misused.

For tenants, own-use evictions can be highly disruptive. Any rule that changes notice periods or compensation can materially affect a household’s ability to find replacement housing and manage moving costs.

Investors considering a future sale, personal move into a rental property, or a purchase involving a tenanted home should obtain current advice before acting.

Renovation and demolition-related evictions

Bill 97 also contains important amendments involving termination notices for demolition, conversion or repairs and renovations requiring vacant possession.

This area has received considerable attention because of concerns about so-called “renovictions,” where tenants are displaced under the stated purpose of major renovations and the unit is later rented at a higher price.

The legislative framework includes changes intended to add greater structure and accountability to this process, including provisions involving documentation from a qualified person in applicable circumstances.

For legitimate investors, this is an important distinction.

There are real situations where extensive renovations cannot reasonably or safely be completed with a tenant occupying the unit. At the same time, tenants need protection from being displaced under a false or exaggerated renovation claim.

A well-functioning system should recognize both realities.

Because implementation details and effective dates matter, landlords contemplating major renovations should not rely on a general summary of Bill 97. They should confirm the law and required forms in effect at the time they intend to proceed.

A Note About Bill 60

Investors will likely see Bills 60 and 97 discussed together throughout 2026 because the LTB is implementing changes arising from both.

Bill 60 includes additional Residential Tenancies Act amendments and may affect areas such as notices, eviction processes and other procedural rules.

This is why it can be misleading to see a social media post label every 2026 landlord and tenant change as “Bill 97.”

The legislation overlaps in timing, but not every change comes from the same bill.

For property owners making real financial decisions, that distinction matters less than understanding exactly which rule is in force, on which date, and what process must be followed.

What Should Ontario Real Estate Investors Do Now?

The most important step is not panic. It is process.

Review your lease and management documents

Older clauses may not reflect current law, particularly around air conditioners and other tenant rights.

Update your forms

Do not assume a form saved to your computer two years ago is still current.

Create a deadline system

The reduction of the LTB review period from 30 days to 15 days makes document tracking more important.

Formalize arrears arrangements

Where a repayment agreement falls within the LTB process, use the required current documentation.

Review utilities included in rent

Investors paying electricity should understand the new air-conditioner rules and establish a consistent, evidence-based process.

Prepare for September

Investors contemplating an own-use termination, major renovation, sale of a tenanted property or other significant tenancy change should verify the rules that will apply when they act.

Get advice before serving a notice

A notice that appears simple can have significant legal consequences. Serving the wrong form, calculating the wrong termination date or misunderstanding compensation obligations can delay the process and create additional exposure.

Our Take: Good Investors Should Want Clear Rules

Ontario’s landlord and tenant system is often discussed as though every gain for one side must be a loss for the other.

We do not think that is always the most useful way to look at it.

Tenants deserve safe homes, lawful treatment, clear agreements and protection from bad-faith evictions.

Landlords deserve rent to be paid, properties to be respected and disputes to be resolved through a system that is understandable and reasonably efficient.

Professional real estate investors should not build a business model around avoiding tenant protections. But neither should responsible landlords be expected to operate without enforceable rights or clear processes.

The strongest long-term investors tend to understand that a rental property is both an asset and someone’s home.

That balance matters.

At the Dan Gemus Real Estate Team, we work with buyers, sellers and investors throughout Windsor and Essex County. Whether you are considering your first rental property, reviewing an existing portfolio, selling a tenanted property or trying to understand how regulatory changes may affect an investment decision, local market knowledge and careful planning are increasingly important.

Real estate investing is not only about what a property may be worth today. It is about understanding operating costs, tenant obligations, landlord responsibilities, financing, resale strategy and the regulatory environment around the asset.

This article is provided for general educational purposes only and is not intended to replace legal, accounting, financial or environmental advice, nor is it intended to solicit those currently under contract with another brokerage. Ontario’s residential tenancy laws and LTB procedures can change, and the correct approach depends on the facts of each situation. Landlords and tenants should consult the current legislation, Landlord and Tenant Board materials and qualified legal professionals where appropriate.