Real Estate

Toronto rent skyrocket after new regulations reduce supply and increased demand

  • Last Updated:
  • Jan 29th, 2018 9:34 pm
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Feb 29, 2008
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rjg4235 wrote:
Jul 7th, 2017 12:22 pm
The really ironic thing is I have never increased rent on any of my tenants. They usually don't stay more than a couple years and I know I can get market rent later or increase it if they stay too long. Now with the limit in place I feel obligated to do it every year at the max incase they stay many years and it goes way below market value. For the first time ever I increased rates to current tenants and it's only because of rent control.
Yup. I'm not the type of landlord who always raises rent and when I do it's not by much. If I have a good tenant, long-term tenant, I raise the rent $50 every 2 years. Now? I can't wait for them to move so I can jack up the rent.

This is what happens when the government meddles and leans too far to one side.
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Feb 29, 2008
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Ziggy007 wrote:
Jul 7th, 2017 10:08 pm
This.

Everyone talks about renting being the path to an easy millionaire / investing the savings or whatever, but rent can go up, landlords can boot you out, and rent never ends.

My mortgage costs have been fixed (actually declined on renewal last year). My renting friends have been losing their minds in the Toronto market recently. Their monthly rents have gone up hundreds of dollars a month over the past few years.
You think it's that easy to get rid of renters? Not quite...it's even difficult to get rid of non-paying renters. A lot of this is a little over the top. If I look at one property for instance, over the course of 7 years rent has gone from $1500 to $1750. This is after a $50 increase this year.

Now once this tenant leaves, price is going to go up more when typically I wouldn't have raised it.
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Nov 2, 2013
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mathiewannabe wrote:
Jul 7th, 2017 1:42 pm
What are typical profiles of people who rent condos at $2k/month?

bachelor earning 80$K/yr?
couples earning combined 100$k/yr ?
It's no secret. Bank of mom and dad, and people who want to live in the area at any cost.
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Thornhill, ON
mathiewannabe wrote:
Jul 7th, 2017 1:42 pm
What are typical profiles of people who rent condos at $2k/month?

bachelor earning 80$K/yr?
couples earning combined 100$k/yr ?
FirstGear wrote:
Jul 8th, 2017 1:00 pm
It's no secret. Bank of mom and dad, and people who want to live in the area at any cost.
I know many people/friends who live downtown..they are the finance or Telco types or other types of professional making 70k+ to well over 6 figures...live downtown so don't need a car so they can easily afford 2k rent...

And many live with their gf/bf or spouse and are dual income

2k rent is still quite cheap for a nice condo downtown in biggest city with so many high paying jobs downtown

Heck..our new intern lives by union station in a 1+1 paying 1800 and shares with her gf who's a student .. but they don't need or have a car and can afford it easily
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Feb 29, 2008
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Sanyo wrote:
Jul 8th, 2017 9:32 am
nothing like mother wynne trying to buy votes... now renters will also get angry at her lol.

cant wait for her to be gone once and for all!
She is so flipping dumb.
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daivey wrote:
Jul 8th, 2017 10:21 am
interesting post and I agree with this.

And this is why we are seeing crazy rental prices, at the same time, condo market on fire.

and I agree.. at a certain point, rents will be crazy enough that again it will fuel another house demand bubble... as eventaully people that were ok with renting will do whatever they can to buy because it no longer makes sense to rent.... when you get to $2500 a month for a 1 bedroom, 1 bathroom, the same person will say "wtf, I can buy this unit for $400,000 and my all in costs are the same".

watch, next year, Toronto/Ontario will have the same BC government loan for first time buyers. That way the people with Zero down will be able to buy condos.
Yep. Exactly what I mean by the government completely flubbing this whole thing. Desperate for votes and having no idea that they're making things even worse. As a renter, why pay 2100/rent when you could pay the same or less as an owner? Rents will just go higher and then make home ownership look like a better option and hence bump up those prices.

Government needs to get off their ass and actually do something instead of taking lazy approaches to the problem.
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JayLove06 wrote:
Jul 8th, 2017 3:20 pm
Government needs to get off their ass and actually do something instead of taking lazy approaches to the problem.
please no. the more they do the worse it gets. honestly is there anything worse than an activist government? Bob Rae was a saint compared to these idiots.
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Flavour wrote:
Jul 8th, 2017 3:35 pm
please no. the more they do the worse it gets. honestly is there anything worse than an activist government? Bob Rae was a saint compared to these idiots.
I think they did so much damage they kinda have to do something now. Should have never played around with the market. Closing loopholes I have no problem with. But all the other shit? Unnecessary.
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Doubleshot wrote:
Jul 8th, 2017 2:13 pm
I know many people/friends who live downtown..they are the finance or Telco types or other types of professional making 70k+ to well over 6 figures...live downtown so don't need a car so they can easily afford 2k rent...

And many live with their gf/bf or spouse and are dual income

2k rent is still quite cheap for a nice condo downtown in biggest city with so many high paying jobs downtown

Heck..our new intern lives by union station in a 1+1 paying 1800 and shares with her gf who's a student .. but they don't need or have a car and can afford it easily
That's very much like Vancouver. People will gladly for out $2,000+/month for a 1br but they obviously can't afford to even own a vehicle- where the median household income is $67K. lol. Very normal to meet people nearing or into their 30s and don't drive. But some are willing to make the sacrifice like you mentioned.
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I currently own a rental property and rarely increase the rent in the past as my renters are often moving out in a year or two and I then can rent out at market price, now that my tenant is looking to stay long term, I have no choice but to end the lease as I will lose money in the long run. This new regulation is stupid, not to mention they force us to pay the renters if we move back in or sell the house, so no choice, I have to end the current lease and put it up for market price as other nearby units are renting at 25% higher
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TerenceP425899 wrote:
Jul 8th, 2017 8:02 pm
I currently own a rental property and rarely increase the rent in the past as my renters are often moving out in a year or two and I then can rent out at market price, now that my tenant is looking to stay long term, I have no choice but to end the lease as I will lose money in the long run. This new regulation is stupid, not to mention they force us to pay the renters if we move back in or sell the house, so no choice, I have to end the current lease and put it up for market price as other nearby units are renting at 25% higher
You have no choice but to end the lease? What does this mean? You don't get to decide to end the rental. At the end of the lease term it goes month to month. The only way you can get rid of tenants who intend to stay is to either occupy the unit yourself or sell to someone who intends to occupy themselves. You can't tell the tenant I'm ending your lease and then put it up at market rates. Doesn't work that way. Unfortunately there are few options to get back to market rent unless the current tenants choose to leave and you can re-tenant.
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cartfan123 wrote:
Jul 8th, 2017 8:11 pm
You have no choice but to end the lease? What does this mean? You don't get to decide to end the rental. At the end of the lease term it goes month to month. The only way you can get rid of tenants who intend to stay is to either occupy the unit yourself or sell to someone who intends to occupy themselves. You can't tell the tenant I'm ending your lease and then put it up at market rates. Doesn't work that way. Unfortunately there are few options to get back to market rent unless the current tenants choose to leave and you can re-tenant.
When it is month to month, all I need to do is to give tenant 2 months notice, that's all I need.
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TerenceP425899 wrote:
Jul 9th, 2017 8:59 am
When it is month to month, all I need to do is to give tenant 2 months notice, that's all I need.
Complete swing and a miss. It's people like you that give landlords a bad name. Complete disregard for the rules. Whether they are fair or not, they are the rules. But if I guess if your tenant is willing to be pushed around I guess you can get away with it.

http://www.sjto.gov.on.ca/documents/ltb ... 5_2015.pdf
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TerenceP425899 wrote:
Jul 9th, 2017 8:59 am
When it is month to month, all I need to do is to give tenant 2 months notice, that's all I need.
Are you in Ontario? Because that's only true if you or a family member will be moving into the unit.

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