Rental units first occupied for residential purposes after November 15, 2018 are now exempt from the rules that limit rent increases to the guideline amount (See section 6.1 of the Residential Tenancies Act). The exemption applies to rental units in new buildings, new mobile home parks and land lease communities, as well as additions to existing buildings, mobile home parks and land lease communities. It also applies in certain circumstances to new self-contained rental units added to existing detached houses, semi-detached houses or row houses (e.g. basement apartments).
Landlords of these units must still serve a notice of rent increase 90 days in advance with a Landlord and Tenant Board approved form and they can only increase the rent once every 12 months, but there is no limit on the amount of the rent increase.
Read the Ministry of Municipal Affairs and Housing backgrounder.