Real Estate

The Ford government removed rent control on new units. A year later tenants are reporting double-digit increases

  • Last Updated:
  • Nov 26th, 2019 12:07 am
[OP]
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Feb 22, 2011
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The Ford government removed rent control on new units. A year later tenants are reporting double-digit increases

Overtime these buildings will represent more and more of the market. They will also drag up other prices as they are now a higher alternative.

https://www.thestar.com/news/gta/2019/1 ... eases.html
48 replies
[OP]
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Feb 22, 2011
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I never thought of this strategy, charge more for month to month, not sure why they would want to lock into a new lease though. There is no real advantage to the landlord.


The landlord at her Weston area building was proposing two options: starting March next year (when their lease will be up for renewal), the tenants, who currently pay $1,650 a month, have to choose between either signing another 12-month lease at $1,757 — representing a 6.5 per cent jump — or moving to a month-to-month deal that would bring rent to $2,007, a 21.6 per cent hike.
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Why is building in the article exempt from property tax????
[OP]
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Feb 22, 2011
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BiegeToyota wrote: Why is building in the article exempt from property tax????
In exchange developers and investors also built affordable housing units that are subject to rent control. Government outsourced public housing in exchange for a tax break for those who paid for the units to be built.
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Oct 30, 2019
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News like this are evidence of symptoms of a growing city being affected by a housing crisis. I think we will see a lot more of this, as well as mom and pop landlords evicting their tenants due to “a family member moving in”.

The only real solution is to buy your own place to hedge the increasing cost of housing. I understand not everyone can do that, but it’s the only way of avoiding a hellish renting environment.
[OP]
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lovestock wrote: News like this are evidence of symptoms of a growing city being affected by a housing crisis. I think we will see a lot more of this, as well as mom and pop landlords evicting their tenants due to “a family member moving in”.

The only real solution is to buy your own place to hedge the increasing cost of housing. I understand not everyone can do that, but it’s the only way of avoiding a hellish renting environment.
One of the best benefits of owning is locking in your living expense and (except for rare circumstances) guaranteeing you will never be displaced from your home. This is almost invaluable to many people, especially those with young children.
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Jan 9, 2010
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I'm so sick and tired of this rhetoric that tenants are victims and landlords are taking advantage of them. If anything else it's the other way around. The person in the article that said “I know business is business, but this is absolutely crazy. It’s not within reason,” is an idiot. What constitutes within "reason"? If the market wouldn't tolerate such rents then her eviction will blow up in the landlord's face. If it does, then the rate increase is definitely "within reason" since the market can absorb it.

The reality is that rent control helps no one, neither tenants or landlords, and hurts everyone. People also need to get this out of their head that they DESERVE to live in Toronto, or worse yet, a SPECIFIC BUILDING OR POCKET in Toronto. No one owes you anything, even if you grew up there since that's where your parents lived. Go and earn it, stop whining, and blaming it on other people especially foreign investors or immigrants. The private sector also isn't there to provide a public service and operate at a loss and build public housing so that they can lose money and operate like a charity. Grow up.
[OP]
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Feb 22, 2011
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moofur wrote: I'm so sick and tired of this rhetoric that tenants are victims and landlords are taking advantage of them. If anything else it's the other way around. The person in the article that said “I know business is business, but this is absolutely crazy. It’s not within reason,” is an idiot. What constitutes within "reason"? If the market wouldn't tolerate such rents then her eviction will blow up in the landlord's face. If it does, then the rate increase is definitely "within reason" since the market can absorb it.

The reality is that rent control helps no one, neither tenants or landlords, and hurts everyone. People also need to get this out of their head that they DESERVE to live in Toronto, or worse yet, a SPECIFIC BUILDING OR POCKET in Toronto. No one owes you anything, even if you grew up there since that's where your parents lived. Go and earn it, stop whining, and blaming it on other people especially foreign investors or immigrants. The private sector also isn't there to provide a public service and operate at a loss so that they can build public housing so that they can lose money and operate like a charity. Grow up.
I 100% agree. If people want to see what a city looks like without private industry or investment look at Windsor. Anyone can move there if they want, but they don't. Why? Because they want to benefit from the advancements made by private industry.
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Oct 7, 2007
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moofur wrote: I'm so sick and tired of this rhetoric that tenants are victims and landlords are taking advantage of them. If anything else it's the other way around. The person in the article that said “I know business is business, but this is absolutely crazy. It’s not within reason,” is an idiot. What constitutes within "reason"? If the market wouldn't tolerate such rents then her eviction will blow up in the landlord's face. If it does, then the rate increase is definitely "within reason" since the market can absorb it.

The reality is that rent control helps no one, neither tenants or landlords, and hurts everyone. People also need to get this out of their head that they DESERVE to live in Toronto, or worse yet, a SPECIFIC BUILDING OR POCKET in Toronto. No one owes you anything, even if you grew up there since that's where your parents lived. Go and earn it, stop whining, and blaming it on other people especially foreign investors or immigrants. The private sector also isn't there to provide a public service and operate at a loss and build public housing so that they can lose money and operate like a charity. Grow up.
You raise some interesting points. You should try living in Vancouver. It's totally different here. NOT!!!

I think there is a big divide opening up in our society where there are two kinds of people:

1. Those who want to work hard and make something for themselves by reaching their full potential. These are the kind of people who work hard, pay their taxes, make sure their families needs are met, and only splurge on WANTS when they can afford to do so always keeping in mind that it is wise to LIVE WITHIN THEIR MEANS and be prepared for rainy days and the future. These people rarely complain and don't really expect anything from their government except safety and some reasonable amount of assistance for those who absolutely cannot help themselves

2. Those who don't want to work hard and expect everything for free at everyone else's expense. These are the kind of people who pay little to no taxes but live like movie stars on extended credit and the bank of mom and dad and would like the government (i.e. taxpayers) to fund all of their wants and desires including housing. These people live luxuriously, travel, eat out all the time and spare no expense on themselves. These people always complain that life is not fair and that those who have accomplished things don't deserve what they have and that the accomplished should just give their stuff to those who don't have the same just to make it fair.

As time moves forward the people in group #1 fund those in group #2 until group #1 is physically unable to do so. Where we are on the map, I am not sure but I don't see this as something that group #1 will be able to do for very much longer.
Last edited by choclover on Nov 23rd, 2019 11:03 am, edited 1 time in total.
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mazerbeaner wrote: I never thought of this strategy, charge more for month to month, not sure why they would want to lock into a new lease though. There is no real advantage to the landlord.


The landlord at her Weston area building was proposing two options: starting March next year (when their lease will be up for renewal), the tenants, who currently pay $1,650 a month, have to choose between either signing another 12-month lease at $1,757 — representing a 6.5 per cent jump — or moving to a month-to-month deal that would bring rent to $2,007, a 21.6 per cent hike.
Just curious, have you read the article till end? Any reason to quote above, but not the follow-up decision on month-to-month premium? i know, you subject will not so so " boombastic" in that case....

Yeah, company changed their mind.... once their lawyer found out their management plans....
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Jan 17, 2006
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Isostar wrote: Just curious, have you read the article till end? Any reason to quote above, but not the follow-up decision on month-to-month premium? i know, you subject will not so so " boombastic" in that case....

Yeah, company changed their mind.... once their lawyer found out their management plans....
It is not about if it was reversed or not, it is about that newer buildings have all kinds of flexibility now. That is why I recently sold older and acquired pre-con on assignment.
But beside it, you seem to have trouble comprehending what you read yourself.
Show me the place where
"company changed their mind.. once their lawyer found out their management plans. "

It is company decided to not pursue premium on month to month lease even though they are free to do so.
Upon further reflection, ownership has decided that its leasing goals can be achieved through means other than applying a premium on month-to-month rent renewals
Last edited by ilim on Nov 23rd, 2019 12:45 pm, edited 1 time in total.
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moofur wrote: I'm so sick and tired of this rhetoric that tenants are victims and landlords are taking advantage of them. If anything else it's the other way around. The person in the article that said “I know business is business, but this is absolutely crazy. It’s not within reason,” is an idiot. What constitutes within "reason"? If the market wouldn't tolerate such rents then her eviction will blow up in the landlord's face. If it does, then the rate increase is definitely "within reason" since the market can absorb it.

The reality is that rent control helps no one, neither tenants or landlords, and hurts everyone. People also need to get this out of their head that they DESERVE to live in Toronto, or worse yet, a SPECIFIC BUILDING OR POCKET in Toronto. No one owes you anything, even if you grew up there since that's where your parents lived. Go and earn it, stop whining, and blaming it on other people especially foreign investors or immigrants. The private sector also isn't there to provide a public service and operate at a loss and build public housing so that they can lose money and operate like a charity. Grow up.
Agreed. If your just in a low paying nothing job get out of Toronto... why you even here? If it’s for the big city life... then that comes with a big city price tag.
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moofur wrote: I'm so sick and tired of this rhetoric that tenants are victims and landlords are taking advantage of them. If anything else it's the other way around. The person in the article that said “I know business is business, but this is absolutely crazy. It’s not within reason,” is an idiot. What constitutes within "reason"? If the market wouldn't tolerate such rents then her eviction will blow up in the landlord's face. If it does, then the rate increase is definitely "within reason" since the market can absorb it.

The reality is that rent control helps no one, neither tenants or landlords, and hurts everyone. People also need to get this out of their head that they DESERVE to live in Toronto, or worse yet, a SPECIFIC BUILDING OR POCKET in Toronto. No one owes you anything, even if you grew up there since that's where your parents lived. Go and earn it, stop whining, and blaming it on other people especially foreign investors or immigrants. The private sector also isn't there to provide a public service and operate at a loss and build public housing so that they can lose money and operate like a charity. Grow up.
We are a growing city and the favourable areas of the city such as the Entertainment District, Yorkville, and the best areas in the core are now demanding premium rents and prices. The issue is that the increases are happening so fast that tenants, renters, and buyers are having trouble adjusting. Every day there is an article in the Star or BlogTO about the real estate market. There is panic, there is resentment, and there is FOMO. It is an ugly situation out there.

My recommendation to anyone out there who is struggling is to find a way to save and buy before things get worst.
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Aug 11, 2005
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lovestock wrote: We are a growing city and the favourable areas of the city such as the Entertainment District, Yorkville, and the best areas in the core are now demanding premium rents and prices. The issue is that the increases are happening so fast that tenants, renters, and buyers are having trouble adjusting. Every day there is an article in the Star or BlogTO about the real estate market. There is panic, there is resentment, and there is FOMO. It is an ugly situation out there.

My recommendation to anyone out there who is struggling is to find a way to save and buy before things get worst.
Love the fear monger if. It’s the same in 2007 in the us just before the collapse.

“Buy now or forever be prices out”
“It’s different here this time”
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Luckyinfil wrote: Love the fear monger if. It’s the same in 2007 in the us just before the collapse.

“Buy now or forever be prices out”
“It’s different here this time”
I am not fear mongering. I agree, there is a chance that prices may be expensive and there could be a correction, especially in the condo market. But, what is objective are the increases in the rental rate. Many people are getting priced out and it is a very unfortunate situation. Is Toronto growing too fast for its own good? Probably.

Buying is the only way to hedge living costs, although you take on a new risk; interest rate risk with your mortgage.

The TO housing market is just a complicated situation with no answerable solution.

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