August 2026 Market UpdateIn August 2026, GTA new listings fell 14%, while sales remained fairly steady, down just 2%.With fewer homes available, competition could increase and put upward pressure on
Dated: July 3 2026
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If you own rental property in Ontario, there's an important legislative update you should be aware of.
Effective July 1, 2026, new rules under Ontario’s Residential Tenancies Act allow tenants to install and use a portable or window air conditioner when air conditioning isn’t already supplied by the landlord, provided certain conditions are met.
When a landlord does not provide air conditioning, tenants may install their own portable or window air conditioner, provided they comply with the new requirements.
Where the landlord pays for electricity, tenants must:
The above safety and compliance requirements apply to air conditioners installed on or after July 1, 2026.
If a tenant installed a portable or window air conditioner before July 1, 2026, the safety and compliance requirements still apply.
However, those tenants are not required to:
In certain prescribed circumstances, a landlord may prohibit a tenant from installing an air conditioner.
However, at this time, those circumstances have not yet been defined, meaning landlords should not assume they have the right to prohibit tenants from installing an air conditioner.
If the landlord pays for electricity and the tenant installs an air conditioner on or after July 1, 2026, the landlord may raise the rent to recover the actual cost or a reasonable estimate of the additional electricity used.
There are important limitations:
Unlike traditional rent increases, these adjustments:
Moreover, even if an LTB order currently stops the landlord from raising rent on a rental unit—for example, because the landlord has not yet completed required repairs or complied with work orders—that order does not block the air conditioning rent increase.
Landlords may inspect a rental unit to verify that an air conditioner has been installed safely and complies with the legislation.
As with any inspection under the Residential Tenancies Act, proper written notice must be provided before entering the rental unit.
For landlords, these changes introduce new responsibilities while also providing a process for recovering eligible electricity costs in certain situations.
Whether you’re a first-time landlord or an experienced investor, staying informed about changes affecting Ontario rental properties can help you protect your investment and avoid costly surprises.
If you're looking to grow your rental portfolio or have questions about Ontario's rental market, reach out any time.
We have you covered.
Sources:
This article is intended for general informational purposes only and should not be considered legal advice. If you have questions about how this legislation applies to your specific situation, consult a qualified legal professional.
Zubin is an award-winning ReMax Realtor® with an impeccable track record of sales and customer service, having established himself as a Real Estate Agent that walks the walk, also being a passionate ....
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New Air Conditioning Rules Every Ontario Landlord Should KnowIf you own rental property in Ontario, there's an important legislative update you should be aware of.Effective July 1, 2026, new rules