Landlords and property managers: agreeing with competitors on rental prices is illegal


From: Competition Bureau Canada 



    
    News release


    

Landlords and property managers: agreeing with competitors on rental prices is illegal

June 25, 2025 – GATINEAU (Québec), Competition Bureau

    

 

	
    
        

    

June 25, 2025 – GATINEAU (Québec), Competition Bureau 


The Competition Bureau is aware that some landlords and property managers may be engaging with their competitors, including through discussion groups on social media.  


While some discussions between competitors may be justified, others could be illegal. Landlords and property managers must understand the difference between conversations that are harmless and conversations that they should steer clear from. 


Agreements between landlords to “make the most of the booming rental housing market” or “find ways to ensure that all players benefit from the strong demand equally” raise concerns under the law and could be illegal. 


It is illegal for competitors to agree about: 
 
 Rental prices, including any increases or surcharges. 
 The terms of their leases, including amenities and services. 
 Restricting the housing supply by artificially reducing the availability of rental units. 
 


Engaging in illegal agreements with competitors, such as price-fixing, market allocation, restricting supply, or wage-fixing and no-poaching agreements, is a criminal offence under the Competition Act, with potential prison sentences of up to 14 years and hefty fines at the discretion of the court. 


Landlords and property managers can stay on the right side of the law by:  
 
 Deciding on their own prices, price increases, surcharges and the terms of leases. 
 Explaining and negotiating the terms of leases with their tenants only. 
 


The Bureau encourages the reporting of any suspicious activity through the Bureau’s Information Centre and online form. Those who believe that the company they work for has entered into an illegal agreement with its competitors can provide information anonymously through the Bureau’s Whistleblowing Initiative. Parties that engaged in anticompetitive activity can also come forward to seek immunity or leniency in return for their cooperation with the Bureau’s investigations.


    


	


    

    
        
        

        
        
    
        
        

        

        


    

    
        Associated links

        
            
                
                    Common types of illegal agreements that hinder competition
                
            
                
                    Protection for whistleblowers
                
            
                
                    Immunity and Leniency programs
                
            
                
                    Restrictive trade practices 
                
            
                
                    Abuse of dominance 
                
            
                
                    Abuse of Dominance Enforcement Guidelines 
                
            
                
                    More Consumer and Business Alerts
                
            
        

        
    




    
        
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.
    




    

    

    
	
    	
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Canada's Competition Bureau Warns Landlords Against Price-Fixing

The Competition Bureau of Canada has raised concerns regarding potential illegal agreements among landlords and property managers, particularly those discussing rental prices and lease terms through social media and other platforms.

 Such agreements, aimed at capitalizing on the booming rental market, could violate the Competition Act. Specifically, it is illegal for competitors to agree on rental prices, lease terms, or to restrict the supply of rental units.

 Engaging in these anticompetitive practices, including price-fixing and market allocation, can lead to severe penalties, including prison sentences of up to 14 years and significant fines. The Bureau encourages landlords and property managers to set their own prices and negotiate lease terms directly with tenants.

 To promote compliance, the Bureau has established channels for reporting suspicious activities and offers immunity or leniency for those who cooperate with investigations into anticompetitive behavior.



Canada's Competition Bureau Warns Landlords Against Price-Fixing

The Competition Bureau of Canada has issued a warning to landlords and property managers about the illegality of colluding on rental prices and lease terms, emphasizing the importance of independent decision-making.