Can a new landlord increase rent right after buying a tenanted property in Ontario?

No. A change in ownership does not reset the rules around rent increases; the Residential Tenancies Act, 2006 governs when and by how much rent can be increased for a continuing tenancy regardless of who owns the property, and a new landlord steps into exactly the same position the previous landlord was in, including the timing of when the next permitted increase can actually take effect.

In practice, this means the tenancy's existing rent history, including when the last increase happened, continues to apply after the sale, and buying the property does not create a fresh opportunity to raise rent immediately or beyond the standard annual guideline amount. Above-guideline increases remain available only in the narrow circumstances the Act permits, not simply because a new owner wants to bring rent closer to market value. Before underwriting an investment purchase on the assumption of an early or larger rent increase, confirm the tenancy's actual increase history and timing with your lawyer, since assuming otherwise can meaningfully overstate the returns you can realistically expect in the near term.